Higher Education Minister, Blade Nzimande, has emphasised that the extent of the student debt crisis in South Africa poses a serious threat to the future sustainability of the country's post school education and training institutions.
Nzimande stated on Tuesday that as of January 2023, the student debt at higher education institutions has amounted to more than R16.5 billion.
This cost of debt is R1.5 billion per annum which could be directed towards infrastructure development and/or growing the academic system.
He announced that in order to effectively address the issue, his department is working on a new comprehensive student funding model, while a funding scheme to address those who form part of the missing middle is also being finalised.
The Minister affirmed that the promise to make higher education more accessible to young people was among the most important commitments made by the government.
Earlier this month, education activists at the Foundation for Education and Social Justice Africa called on the DHET to stop financial exclusions for the 2023 academic year.
They argued that students require additional support amid the Covid-19 pandemic and the impact it had on the education sector.
The department says that the National Student Financial Aid Scheme (Nsfas) has agreed with all institutions to allow all Nsfas funded students to register for the 2023 academic year and that this also applies to all students who qualify under the Historic Debt Funds and Close Out Report.
As a result, we appeal to institutions to register these students and allow administrative processes between NSFAS and the institutions to continue.
Nzimande also reminded prospective students that applications for Nsfas funding for 2023 are still open and interested candidates should apply before the closing date on 31 January 2023.
