A growing proportion of South Africa’s soaring student debt to universities is unlikely to be recovered, jeopardising the financial viability of the sector, parliament heard on Wednesday.
South Africa’s 26 universities were owed R24bn by end-2024, of which 64% (R15.3bn) was impaired debt. In 2022, bad debt (R11.3bn) constituted 60% of the total R18.8bn owed by students, according to the department of higher education & training.
“Student debt is not only a student-support issue; it directly affects the reliability of a major income stream and the cash that institutions can realistically collect,” said the department’s deputy director-general for universities, Thandi Lewin.
“Though universities of technology show the highest debt ratios, traditional comprehensive universities are also carrying substantial debt balances — it is a sector-wide issue,” she said.
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