Student debt fuels fresh tensions at universities

Student funding may not be failing because of a lack of money, but because of how that money is managed.

Dr Simphiwe Madikizela, a senior lecturer at Unisa’s Graduate School of Business Leadership (SBL), says “poor planning, weak and inefficient systems and processes” at institutions responsible for funding students mean money does not always reach those who qualify.

His warning comes after protests at Rhodes University in Makhanda last week over a proposed fee payment protocol, which resulted in 13 students being arrested and later released.

Under the proposed policy, students must clear 50% of outstanding debt and tuition fees by the end of 2026 to register for the 2027 academic year.

Rhodes University spokesperson Olwetu Gwanya said, “The proposed 2027 protocol on the payment of student fees is a response to the unsustainably growing levels of student debt and the need to ensure the university’s long-term financial sustainability while maintaining access to higher education.”

For undergraduates with outstanding debt, the proposal is a 50% upfront payment towards that debt, with the balance paid under set arrangements. Rhodes says the plan also stretches the payment period to ease pressure on families. It says it has found that most students do not honour the payment arrangements they sign at the start of the year, which contributes to the accumulation of the debt.

The university explained that of 9,532 students, 5,039 are self-funded and 4,493 are funded by the National Student Financial Aid Scheme (NSFAS). “The protocol does not apply to NSFAS-funded students whose funding has been confirmed,” said Gwanya.

In August, a student protest at the Cape Peninsula University of Technology (CPUT) erupted after the university attempted to introduce a financial recovery plan, forcing postgraduate and unfunded students to pay an upfront R7,000 fee covering registration and accommodation.

CPUT subsequently withdrew the plan pending further explanation, clarification and thorough consultation with appropriate stakeholders, including student representatives. The university had a student debt burden of R2.1-billion.

‘Take all possible measures’

As previous university protests have shown, Rhodes is not an isolated case. Prof Thandi Lewin of the Department of Higher Education and Training (DHET) said the sector is carrying about R30-billion in historic student debt, much of it impaired, as institutions consider measures to keep teaching and essential services running.

“We also can’t have access restricted because a council at that institution has taken a decision that will exclude thousands of students whose parents can’t afford to pay. Universities must negotiate with students affordable payment plans that will ensure self-paying students can afford,” said Letsie.

He said Parliament was reviewing the Higher Education Act to establish standardised statutes across universities on matters that affect students and institutions alike.

“This will ensure that a student at UCT is treated the same as a student at VUT,” said Letsie.

With tensions now appearing to have eased, Rhodes University said it continued to engage with the SRC and that the proposal remained subject to approval by the university’s council.

“The engagement with students and student leadership will therefore inform the university’s consideration of the issues raised before the matter is finalised,” said Gwanya. DM