Durban - Higher Education Minister Blade Nzimande said universities had agreed to address the burning historical debt matter on a case-by-case basis, and within the means of what each university could afford.
Nzimande was speaking during an urgent National Assembly Portfolio Committee meeting on Higher Education, Science and Technology yesterday.
Nzimande told committee members that this would be applicable to students who fall under so-called missing middle students.
Missing middle students refers to students who have an annual household income of between R350,000 and R600,000, thus, do not qualify for National Student Financial Aid Scheme (NSFAS) funding.
He said that out of all the issues at hand, the government’s main challenge was the debt owed by students to the universities.
Nzimande said that based on their analysis, a large part of students who were having a problem with historical debt were not NSFAS-funded students.
“Since 2018, NSFAS-funded students are being paid for everything, including the historical debt. Even pre-2018, we had arrangements with the universities that those students be allowed to register. The reality of what we are dealing with now is the middle class,” said Nzimande.
He said that during an urgent meeting with the university’s vice-chancellors on Tuesday, universities agreed to consider allowing students to register on a case by case basis.
He said this would be done provided students sign the Acknowledgement of Debt (AOD) form and that they are doing well academically.
However, Nzimande said even though some institutions were clearing students’ historical debt, some would not be able to.
He said that the dilemma that they were facing was that even though they might be willing to clear case by case, per institution, student leaders were still unhappy.
“The demands from for students is that they want this to be done in the same way for everyone. That cannot be done because of the inequalities of our institutions,” he said.
Universities South Africa (USAf) Chief Executive Officer Professor Ahmed Bawa also told the committee that 2019 figures indicated that more than R14 billion was owed to universities by students.
Bawa said that the 2020 figures would be larger.
He said that out of that amount, more than R7 bn was owed by students who have already left the universities, and around R7 bn was current debt.
“The student debt challenge is massive and there is no indication of national government support to the universities. The signing of AOD forms is not a solution to the problem. What it does is open a way for debt to be extended in time but also add to the debt each year,” Bawa told the committee members.
He said that regardless, they have decided that each university would now address the debt of returning students with individual students and student representatives on campus.
He said that since there is no funding for the missing middle, universities together with the department, has begun with the ‘fine-grain analysis’ of those students who fall in those categories.
“This is going to be done to understand the problem and the type of solutions that can be put in place to address that. We also agreed that the ministry would set up a task team that would look at the long-term solution about funding the missing middle,” said Bawa.
South African Union of Students (SAUS) President Misheck Mugabe said the R7 billion debt by students would not be recovered until universities clear historical debt.
“These people are expected to get jobs and to pay the institutions, but to get a job, you must produce a certificate which is withheld by universities. Now then, how do you clear this debt while you’re not employable?”
Mugabe said that the peaceful national shutdown protest would be ongoing as 18 out of 26 universities have joined the protest.
Meanwhile, the committee members could not make recommendations yesterday after both department’s political leaders, Nzimande and deputy minister Buti Manamela, left the meeting early stating that they had other commitments.
Committee chairperson Philly Mapulane expressed his disappointments as the meeting had to be terminated.
The Mercury