Historical debt problem looms large for students

As most universities commence with their classes today, several student representative councils (SRCs) are racing against time to use funds they have raised to help students with historic debt to register.

NSFAS says it changed it policy last year as the cost of student accommodation was becoming unsustainable.
NSFAS says it changed it policy last year as the cost of student accommodation was becoming unsustainable. (Veli Nhlapo)

As most universities commence with their classes today, several student representative councils (SRCs) are racing against time to use funds they have raised to help students with historic debt to register.

On Friday, the Wits University SRC was among 26 SRCs that received a R30m donation from the Motsepe Foundation towards student registration, tuition fees and clearing students’ historic debt to register this year.

Wits SRC received a R1m donation, which will go to a fund that the SRC established to assist indebted students.

SRC secretary-general Tshiamo Cuma said thousands of students were unable to register due to historic debt. Cuma said the SRC aimed to raise R30m through their fund, called the Century of Inclusion Fund.

“'The problem that we have is that the university will only allow these students to register if they settle 50% of their historic debt. This is something that makes us unhappy as student leaders. However, we decided to be proactive and come up with ways to raise funds for students.

“Some of these students owe R40,000 and some R150,000. We are trying our best to help them,” said Cuma.

Last week Tuesday, the SRC embarked on a clean-up campaign collecting garbage in the Johannesburg CBD in order to raise funds for students who are unable to register. The campaign is gaining traction. 

Registration at Wits started on January 6 and has been extended to February 27. 

“The SRC notes that most students have not registered due to financial constraints… This time-frame will allow students who are waiting for a response from the hardship fund, NSFAS [national student financial scheme] appeals, and SRC fund to be assisted,” said Cuma.

She said a link for the SRC fund would be released for all students to apply, along with the criteria.

“The SRC will be issuing responses for all applicants of the century of inclusion fund daily,” she said.

Cuma said students with an outstanding balance of over R10,000 were requested to visit their offices today for assistance.

Wits spokesperson Buhle Zuma said more than 33,000 (80%) of the institution’s students were registered for the 2023 academic year.

Zuma said the institution had allocated R28m through its Wits Hardship Fund to assist students in need to register and secure accommodation.

Zuma said students with a family income under R600,000 and who owed more than R10,000, could apply to this fund for assistance.

Successful applicants will receive 50% of the outstanding debt to a maximum of R50,000.

The University of Pretoria (UP) SRC received a R1,1m donation from the Motsepe Foundation.

On Thursday, UP students, who are funded by NSFAS, gathered outside the university’s residence and accommodation offices in Hatfield, Pretoria, while they were seated on mattresses and carrying placards to demonstrate.

They were demanding that NSFAS increase their accommodation allowance funding of R45,000 per annum to match higher rental costs they are expected to pay. 

SRC president Njabulo Sibeko said they had suspended their protest following rental concessions they reached with the institution and owners of private accommodation that are within a walking distance to the university.

Sibeko said it was agreed that certain accommodation would require no top up to be paid.

“The other room types will require proportional top ups, which have been considerably reduced from before. Other apartments have also dropped their prices. This is a temporary solution, while we are working on a more sustainable solution,” said Sibeko.

UP spokesperson Rickus Delport said as of December 31 last year, 35,170 students owed the institution R558m. This debt was accumulated over a period of 10 years. 

He said their registration guidelines stated that students had to settle 50% of their debt before registering. 

“Each student is accessed on their unique situation, taking affordability into account...The university currently continues to seek alternative funding options through our funders and donors to assist students with historical debt. We will also continue to monitor the situation closely and deal with the issues within our available resources while at the same time, doing everything we can to ensure the no deserving student is left behind.”

Sefako Makgatho University director of communications Lusani Netshitomboni said historical debt stood at R371m as of December 2022.

He said the university had come up with alternative means to assist students with historic debt, which include the university partnering with financial institutions to offer student loans.

“The university was also providing merit award/tuition waiver for those who are academically performing well [as well as] funding of missing middle by some funders, for instance Health and Welfare Sector Education and Training Authority and Compensation for Occupational Injuries and Diseases.

kokam@sowetan.co.za



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