South Africa’s universities are grappling with billions of rand in unpaid student debt, forcing institutions to tighten registration rules while expanding fundraising campaigns and payment plans to help struggling students complete their studies.
The debt burden has become a growing concern as universities balance supporting financially vulnerable students with maintaining their own financial sustainability.
At the University of the Witwatersrand (Wits), historical student debt has exceeded R1.4bn, accumulated over about five years.
Wits spokesperson Buhle Zuma said the mounting debt continues to place pressure on the university’s finances.
“Historical debt remains a major challenge for many universities, including Wits University, with student debt exceeding R1.4bn. While the university is sympathetic to the financial burden carried by many students and their families, the university has to remain sustainable so that we can continue to offer high-quality education to future generations.”
The university still has to meet its financial obligations regardless of whether students settle their accounts.
“The total student debt is managed daily. The growing old debt impacts on university cash flow reserves, as the university has to pay academics, utilities, licences, suppliers and services, even if students do not pay the university.”
Wits has introduced several interventions to assist indebted students.
Students owing R15,000 or less, whose household income is R600,000 or below, are allowed to sign an acknowledgement of debt and repayment plan after graduation.
The university also issues academic transcripts and confirmation letters to graduates seeking employment despite withholding degree certificates until fees are settled.
The University of Johannesburg (UJ) said student debt continues to affect its ability to fund teaching, research, student support services and infrastructure. However, an official declined to say what the debts are today.
“Student debt remains one of the largest challenges facing universities nationally, and the University of Johannesburg is no exception,” said spokesperson Masego Panyane.
To re-register, UJ requires indebted students to pay at least 50% of their outstanding fees, settle the minimum registration fee and sign an acknowledgement of debt.
Panyane said the university continues to assist students through its Missing Middle campaign, donor-funded initiatives and partnerships with alumni, businesses and philanthropic organisations.
“While graduation certificates are withheld until outstanding fees have been settled, affected students are still permitted to participate in graduation ceremonies.
“They are issued with official academic transcripts confirming completion of their qualifications, enabling them to pursue employment opportunities,” she said.
At North-West University (NWU), spokesperson Louis Jacobs said the institution handed over R53m in outstanding debt to debt collectors and attorneys in July, including historical accounts.
He added that the university’s National Student Financial Aid Scheme (NSFAS) close-out process for 2017 to 2024 remains incomplete, with a further R47m still outstanding.
“The university performs annual debt handovers; therefore, very few self-funded students have historical outstanding debt. The R47m relates to the historical debt of 2017 NSFAS students,” Jacobs said.
Students with outstanding debt are generally barred from registering or receiving their qualifications until their accounts are settled, though approved NSFAS beneficiaries and bursary recipients are allowed to register.
“The university also considers feasible payment arrangements for students with outstanding debt on a case-by-case basis,” Jacobs said.
He added that NWU’s fundraising department seeks funding to assist indebted students, while the university has also matched funds raised through a student-led campaign to help qualifying students register and graduate.
The University of Pretoria (UP) is also giving a second chance to its students who have completed their studies but were unable to receive their degrees because of outstanding historical debt.
According to the institution, student debt at UP now exceeds R1bn, which they said keeps increasing as the years go by.
The institution has launched a campaign to help students settle their debts. The Degrees Delivered campaign is a three-year fundraising drive aiming to raise R50m between 2026 and 2028 to help qualifying graduates settle outstanding debt and unlock access to employment, professional registration and further studies.
Sowetan
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.