The collective debt South African students owe the country’s universities has grown to unprecedented amounts and experts have attributed several causes behind the country’s ballooning student debt.
As a result of Inflation, the increased cost of living, rising tuition fees and a lack of sustainable solutions, the national student debt has gradually increased and currently stands at approximately R16.5 billion.
These challenging economic conditions have forced many students to drop out of university or college to pursue employment options that could help cover their student debt, leaving them with incomplete qualifications.
In addition, thousands of students have also been barred from receiving their graduate certificates as a result of student debt and outstanding balances on their tuition fees and this has affected their chances of finding employment.
Reducing Student Debt
Careers Portal spoke to Feenix's (crowdfunding platform for students) Student Advancement Manager, Tammy Green to discuss ways student debt can be addressed.
Green says that one of the main things that will help lessen the country’s student debt is collaborative efforts between both public and private sectors and continued investment in students and young people.
I think it's very important for us as a country to look at this as something that we can't just, you know, push aside, or say, we will get there eventually. We need to start looking for the future and looking at what is important.
She adds, "'Its important to back the young people of today, because when they don't find employment they are going to go out of the country to seek employment and that's even worse for the economy."
Green believes that in order to keep the critical skills within our country, “we need to continue pushing and backing those, students up to say, here's, here's opportunities, here's internships, instead of the skills leaving our country.”
Government Plans To Address Student Debt
Over the years, students and stakeholders have pleaded with the Department of Higher Education to find adequate solutions to help combat the challenges many are facing with regards to student debt, particularly students who form part of the missing middle.
The “missing middle” refers to those students who come from working-class households that do not qualify for funds from the National Student Financial Aid Scheme while at the same time, they cannot afford higher education.
Earlier this year, during his state of readiness address, Higher Education Minister Blade Nzimande, stated that his department was working toward developing an alternative funding model for university and TVET college students.
The minister highlighted that the issue of the missing middle is being finalized within the new Comprehensive Funding Model which is expected to be introduced before the end of the new financial year.
Nzimande noted that within the new policy framework his department will avail loans and bursaries and direct these efforts toward students located within the scarce skills categories.
