Universities South Africa has highlighted the issue of student debt which has continued to increase and jeopardize the functionality of higher education institutions.
The overall debt currently stands at R16.5 billion and many believe that a national intervention is needed.
Members of the national assembly have raised concerns regarding the high level of student debt and stated that the model must be changed in order to prevent the debt from increasing and completely crippling the system.
Others also questioned whether the R16.5 billion in student debt was a true reflection of funds owed by students or whether it included interest calculated from students who have passed on.
Universities South Africa, Chief Executive Officer, Dr Phethiwe Matutu stated that the extent of student debt also threatens the future sustainability of Higher Education Insititutions.
The cost of debt is around R1.5 billion per annum which she believes could be directed towards infrastructure development or growing the academic system.
This student debt also has a negative impact on the mental health and academic performance of students at the beginning of each academic year when they must complete their registration in order to enroll for their courses.
The South African Union of Students has indicated that it is a matter of urgency for the Portfolio Committee to sponsor a motion to Parliament on the clearance of student debts.
