Changing fortunes and lives by wiping out historical debt

Education graduate Nompilo Zikhali was drowning in student debt that threatened to snuff out a potential internship, until her fortunes changed. 

Zikhali is a bursary recipient of a joint collaboration between local organisation Feenix, and global mining and metals company South32, which established a programme to assist students with historical debt, estimated at R20bn.

The National Treasury announced last week that tertiary education funding will be cut by about R13.7bn. This is expected to leave more than 200,000 students without access to the National Student Financial Aid Scheme next year. 

Feenix is an independent, public-benefit and technologically innovative organisation that was launched in June 2017 as a response to the #FeesMustFall movement.

It said the partnership was a milestone in a long-standing mission to uplift communities through high-impact initiatives that improve education outcomes.

Zikhali said the bursary programme helped her pay off her outstanding debt.

“Most organisations would request my certificate when I would apply for jobs, which I had no access to as it was withheld by the institution. I was lucky enough to receive an internship at the department of education in Empangeni, however, I was on the verge of losing out on this opportunity, then I received the funding from South32.

“In August of 2022, I could not believe it when I saw my university fee statement showing that I owed nothing. I only believed it when I saw myself, holding both certificates in my hand,” she recounted.

Aimed at the region’s young people, who will soon enter the country’s labour force, Feenix CEO Cara-Jean Petersen said the bursary programme’s financial support is two-pronged.

“We settle outstanding student accounts that are preventing students from continuing with their studies, and we repay the historical debt to universities that prevents graduated students from receiving their certificates and qualifications — standard documents required by most reputable employers,” she said.

Our students are in a crisis and we need to be a part of the solution. With a drastic government budget cut to the funding of tertiary education and a youth unemployment rate sitting at 43.4%, we cannot afford to stand idly by and hope this goes away.

—  Feenix CEO, Cara-Jean Petersen

She said the bursary programme includes providing laptops, food and data vouchers, access to financial literacy training, mental health services and personal development webinars.

Petersen said this approach enables students to focus on their studies, thrive at university, and build a foundation for prosperous futures and fulfilling careers.

“We commend South32 for their dedication to creating positive impacts and contributing to community growth. It’s been a privilege to see, in real time, the incredible and tangible impact education can have on a community.

“Just one year into the initiative, we’re already witnessing its remarkable impacts on the community, with two out of three of the participating students already earning and almost 40% of them entering the job market within their chosen fields of study, notably in commerce, humanities and law. This speaks to not only the impact of our work but also the extraordinary drive and tenacity these students demonstrate,” said Petersen.

“Our students are in a crisis and we need to be a part of the solution. With a drastic government budget cut to the funding of tertiary education and a youth unemployment rate sitting at 43.4%, we cannot afford to stand idly by and hope this goes away,” added Petersen.

A recent Statistics SA labour force survey revealed that most unemployed people in South Africa had education levels below matric. At the same time, only 10.6% were graduates, suggesting that graduates are much more likely to find good jobs and fulfilling careers.

This data shows that a trained, qualified and employed population is the cornerstone for building economic prosperity in previously disadvantaged communities.

“One of our key goals is to make a difference in the lives of our communities, and education is part of our priority projects. An educated generation is important for our country. It’s important for our communities. But more than that, it’s important for the individual who chooses to study,” said the South32 vice-president of operations, Calvin Mkhabela. 

Mkhabela said South32 was a committed champion of education in the King Cetshwayo district community, with a proven track record of actively supporting educational initiatives and having sponsored 47 students to date.

Mkhabela said over the next two years, South32 plans to invest R3.5m, extending its transformative programme to embrace an additional 20 bursary recipients by 2025.

Meanwhile, UKZN has also received R20m to help provide debt relief for students.

The cash injection from the Moses Kotane Institute (MKI) and the newly established merSETA Skills Development Fund, will look to help ease the problems of skills gaps and the student debt burden within KZN.

Various other higher education institutions, including the Mangosuthu University of Technology (MUT), Durban University of Technology (DUT) and the University of Zululand (Unizulu), will also benefit.

The debt relief assistance is a beacon of hope, particularly for students from historically disadvantaged backgrounds, helping alleviate financial constraints and open doors to brighter futures.

Acting executive director of the UKZN Foundation Steve Camp said philanthropic support from their partners lifts a weight from their students in tough economic times, freeing them to get into the job market, lead healthy, joy-filled lives and find purpose in work, play, family and more.

“It is a gift beyond measure,” said Camp.

Speaking to TimesLIVE Premium, South African Union of Students (SAUS) national spokesperson Asive Dlanjwa said historical debt was a huge crisis facing students and universities.

He said it is estimated that there is R19.2bn worth of student debt in all SA universities.

“On average, there are institutions that are sitting with huge amounts of student debt, ranging from R800m to R3.2bn. It’s a crisis. Students who are currently enrolled will be financially excluded, meaning they won’t be able to register here until they repay historical debt, irrespective of whether they pass. Some students end up not being able to apply for jobs because they don’t have their qualifications or academic transcripts, which are withheld by institutions due to fees owed,” said Dlanjwa.

Dlanjwa said they have tried to engage institutions and the department of higher education and training to allow universities to give academic transcripts to prove to potential employers that studies have been completed.

He said students are unable to pay back the money owed if they are unemployed and historical debt will increase.

Dlanjwa said some of the students are being “harassed” daily by lawyers from universities to pay back the money, yet they are unemployed.

He said they hope this issue will be resolved, to address unemployment among graduates.