The Student Debt Crisis in South Africa
How Many Qualifications Are Being Held Back?
More than 165 000 students across the country cannot receive their certificates because they still owe money to their institutions.
The Department of Higher Education and Training (DHET) told Parliament’s Portfolio Committee on Higher Education that the figure is “alarmingly high.”
Universities South Africa (USAF) puts the number even higher, saying 188 209 qualifications are being withheld.
Where Does the Money Owe Come From?
- NSFAS‑funded debt: R29 billion
- Self‑funded student debt: R26 billion
- Institutional bad debts: R12 billion
Together these amounts push the total higher‑education debt to roughly R59 billion.
Why Are Certificates Being Withheld?
- Reconciliation problems between NSFAS and universities – payments often don’t match up, leaving balances unclear.
- Late NSFAS disbursements – when funds arrive late, students fall behind on tuition and accommodation fees.
- Rising accommodation costs – especially in cities, housing expenses add a heavy burden on top of tuition.
Technical universities show the highest debt‑to‑student ratios, but traditional universities are also feeling the strain.
What Does This Mean for Graduates?
Without a certificate, graduates struggle to prove they have the skills employers need.
Committee chairperson Tebogo Letsie warned that this creates a vicious cycle:
- No certificate → harder to find a job → difficulty paying off debt → more debt accumulates.
The committee stressed that the current measures aren’t reducing the debt load; numbers keep climbing.
The Role of NSFAS in University Survival
Letsie put it bluntly:
“There is no university that will survive for five years if NSFAS collapses.”
Because many institutions rely heavily on NSFAS payments to cover operating costs, the financial health of universities is tightly linked to the stability of the funding scheme.
What’s Next?
Parliament has urged the Department of Higher Education and Training to:
- Resolve disputes between NSFAS and universities quickly.
- Speed up work on a sustainable student‑funding model that prevents debt from ballooning again.
Conclusion
The withholding of over 165 000 qualifications highlights a serious gap in South Africa’s higher‑education system.
Fixing the payment delays, improving communication between NSFAS and institutions, and rethinking how students are funded are essential steps.
Only by breaking the link between unpaid fees and locked‑away certificates can graduates get a fair chance to enter the workforce and start paying off their debts.
