More than 300 students who have successfully completed their degrees remain unable to graduate as universities withhold their certificates due to unpaid fees and other administrative issues.
Higher Education Minister Nobuhle Nkabane revealed this information in response to parliamentary questions posed by MK Party MP Mnqobi Prince Msezane, who inquired about the number of students affected by withheld graduation certificates.
“The recent audited data indicates that there are 320 students who have fulfilled requirements for their qualification, but respective universities have deferred awarding the qualification for several admin reasons. These reasons are mainly financial and disciplinary hearings,” Nkabane said.
Msezane further questioned why the department had not prioritised addressing student debt to promote equal access to the job market, highlighting that historical debt disproportionately affects marginalised and disadvantaged youth.
Nkabane pointed to a previous intervention by former minister Blade Nzimande in January 2016, where funds were allocated to pay off historical debt for students eligible for the National Student Financial Aid Scheme (NSFAS).
This initiative targeted students who were underfunded or unfunded between 2013 and 2015, during which NSFAS operated as a loan-based scheme. Nzimande also announced a freeze on tuition fee increases in 2016.
The minister added that historic claims were settled for amounts within the annual funding cap.
An agreement was also reached between the department and all 26 public higher education institutions to issue letters of completion or academic records to qualified students to assist in their job search or further studies.
However, compliance with this agreement varied among institutions.
“Some universities have, however, followed routes they believe will protect their sustainability. The department plans to engage universities further on solutions to addressing student debt as part of its intentions to consult more widely on phase two of the comprehensive student funding model,” he stated.
NSFAS Funding and Challenges
In response to separate questions from Rise Mzansi MP Makashule Gana regarding NSFAS funding, beneficiaries, and graduate outcomes, Nkabane disclosed that NSFAS disbursed R70.2 billion to more than 3.1 million students between 2009 and 2018.
However, NSFAS lacks a system to track how many beneficiaries have graduated, completed their studies, or entered the workforce.
Nkabane emphasised that approximately R27 billion in student debt accrued between 2010 and 2017, excluding repayments made by beneficiaries and funders.
Previously, NSFAS relied on the South African Revenue Service (SARS) to track the employment status of debtors and target collections.
However, over the past two years, NSFAS has not received data from SARS.
“The NSFAS has five external debt collectors that were provided with some of the debtors’ data to collect from debtors and one service provider working only on state deductions or Persal,” Nkabane explained.
The department continues to seek long-term strategies to resolve the issue of student debt and ensure fair access to education and employment opportunities for all students.
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