South Africa’s universities and TVET colleges are sitting with a massive student debt bill of more than R62 billion, raising fresh concerns about the future of higher education in the country.
The growing crisis has once again placed NSFAS under the spotlight, with institutions saying unpaid balances linked to funded students are one of the biggest problems.
Reports presented to Parliament showed that universities alone are currently carrying around R59 billion in student debt, with nearly R29 billion linked to NSFAS-funded students. More than 188,000 graduation certificates are also being withheld because of unpaid fees.
Universities South Africa CEO Phethiwe Matutu said “the major contributor to that debt are the NSFAS-funded students”, with billions still tied to unresolved payments and reconciliation issues between institutions and NSFAS.
The situation has left many students unable to register for classes or receive academic results because of unpaid fees. Some institutions are also struggling to keep operations running smoothly as debt levels continue climbing.
Officials said delayed payments, accommodation funding limits, unemployment, and household financial pressure are all adding to the crisis.
Universities have also warned that government subsidies are no longer enough to fully support institutions, forcing them to rely more heavily on tuition fees.
Political parties and education stakeholders are now calling for urgent reforms, with some warning that the current NSFAS system is “imploding” and placing universities and TVET colleges under severe pressure.
The sector says that without urgent intervention, the debt crisis could continue affecting student success and the long-term stability of institutions across South Africa.
