Cape Town - “Missing middle” students were the source of the student debt that has now climbed up to more than R16.5 billion - money that could have been improving higher education institutions, the Universities South Africa (Usaf) said.
This year about 120 000 students may not be able to graduate because they owe tertiary institutions.
Currently, the government is looking at the possibility of a credit guarantee model for loans for missing middle students from 2023 onwards.
Usaf’s Chief Executive Dr Phethiwe Matutu said they were concerned that there was no national system for funding the students who fall outside of those that don’t qualify for the National Student Financial Aid (NSFAS) threshold.
“Due to there being no solution for them, the students tend to be the source of student debt.
“This becomes a challenge for the university system. The extent of the student debt is damaging to the future sustainability of higher education institutions because current debt is sitting at about R16.5 + billion,” she said.
According to Matutu, on an annual basis, they found that this rate was growing at a rate of about R1,5bn per annum, money which could be directed towards infrastructure development in institutions and growing the academic system.
“This also becomes a source of student anguish and upheaval at the beginning of each year.
“Barring students from getting their certificates and their lives frustrated as a consequence of accumulating debt when institutions can no longer admit them.
Other students struggle to continue with post graduate studies in some cases.
“This points to the fact that we really do need a solution at national level,” said Matutu.
Department of Higher Education and Training’s (DHET) Dr Thandi Lewin said the Ministerial Task Team (MTT), worked to conceptualise a new student financial aid model for the South African higher education and training system and submitted its final report to Minister Blade Nzimane in June 2022, and subsequently presented to Cabinet in September 2022.
“A key recommendation of the MTT is that as part of the long-term development of a new, comprehensive student funding policy, the government should explore the establishment of a loan scheme to support ‘missing middle’ students in accessing higher education and training.
“Given that such a loan model would take time and planning to be implemented, it was advised by the Task Team that the department should explore, in the short-term, the possibility of a credit guarantee model for loans for missing middle students from 2023 onwards,” said Lewin.
Cape Times