Over the past decade, student debt has been a challenge for the country’s economy and the higher education sector due to inflation and the limited funding provided by the Department Higher Education, Science and Innovation.
Higher Education Minister Dr. Blade Nzimande has shared that the government has contributed a total of R1.7 billion to the National Student Financial Aid Scheme (NSFAS).
This comes after a due diligence exercise into the historical debt of continuing or returning NSFAS-qualifying students who registered in 2018 owing to universities.
According to Nzimande, this budget allocation was aimed at students who were subject to the R122 000 family income threshold and the NSFAS funding cap, and covering students registered in 2019, 2020 and 2021.
In a statement, the department also announced that students must meet the academic progression criteria for the years being claimed for and had to sign an acknowledgment of debt with their institutions.
Currently, the project is in progress, as it is subject to an audit process required by NSFAS and is yet to be finalised.
Students who applied for financial aid for the 2022 academic year and beyond
The government bursary scheme has applied the household income threshold of R350,000 to all students who applied for funding for the 2022 academic year and beyond.
NSFAS has clarified that continuing students who were subjected to the R122 000 income threshold and NSFAS cap, qualified for the full cost of study and thus would not incur debt.
“There have been yearly compacts between my Ministry and the councils of universities to ensure fees remain affordable for poor and working-class students as well as missing middle students,” shared Nzimande.
For the 2023 academic year, the Education Department universities have received an allocation of over R38 billion covering an estimated 62% of the undergraduate population studying towards an approved qualification at an institution, and who meet the NSFAS qualifying criteria.
