Calls for universities to scrap student debt incurred over the past three years could bankrupt Eastern Cape universities unless state funding is urgently made available.
President Jacob Zuma last year said a task team set up to look into university fees had recommended that funding be made available to cover debt incurred from 2013 to 2015 due to the National Student Financial Aid Scheme (NSFAS) shortfall.
Yesterday Department of Higher Education and Training (DHET) spokesman Khaye Nkwanyana said director-general Gwebinkundla Qonde recently wrote to university vice-chancellors saying: “All students under NSFAS , whereby payment was either partially paid or not paid at all due to shortfall of funds will be paid by the department.”
The spokesman said R2-billion will be made available in the 2016-17 financial year. “No students under this criteria must be denied access and all other universities in the country are in full compliance,” Nkwanyana said.
However, Walter Sisulu University’s (WSU) acting spokesman Thando Cezula said they had not been informed.
“The university is still awaiting formal communication from DHET with regards to this matter. The university on its own doesn’t have any reserves that can be used to write off the debt.”
Cezula said WSU was doing its best to collect money owed by students, but with little success.
“Because WSU did not have any reserves, non-payment of registration fees and scrapping of the existing student debt will adversely affect its operations as it will not be able to pay for its basic operating expenses necessary for an institution to run efficiently.”
Rhodes University spokeswoman Catherine Deiner said the department had communicated with the university in November last year requesting the amount of the historic debt the university had incurred from 2013 to 2015.
“The university responded to this request. We have not yet been notified whether the full amount will be allocated or not. However, NSFAS has contacted the institution stating that the request which was submitted to the DHET last year should be submitted directly to NSFAS. Therefore I cannot give you the figure that will be allocated at this stage,” Deiner said.
“The university is heavily reliant upon student fee income to maintain its academic project.
“Needless to say the non-payment of this historic debt places severe constraints on and indeed threatens the financial sustainability of the university.”
She said students in debt would have to settle what they owed in the absence of alternative sources of funding to settle the historical debt.
Nelson Mandela Metropolitan University (NMMU) communications deputy director Debbie Derry said NMMU was offering 2015 debt relief to those who qualified.
“Like all institutions of higher learning affected by the 0% fee increase and other financial demands, NMMU will be affected going forward.”
The University of Fort Hare had not commented by deadline.
NSFAS said details would be released at a media briefing tomorrow. — msindisif@dispatch.co.za
Universities desperate for bailout
President Jacob Zuma last year said a task team set up to look into university fees had recommended that funding be made available to cover debt incurred from 2013 to 2015 due to the National Student Financial Aid Scheme (NSFAS) shortfall.
Yesterday Department of Higher Education and Training (DHET) spokesman Khaye Nkwanyana said director-general Gwebinkundla Qonde recently wrote to university vice-chancellors saying: “All students under NSFAS , whereby payment was either partially paid or not paid at all due to shortfall of funds will be paid by the department.”
The spokesman said R2-billion will be made available in the 2016-17 financial year. “No students under this criteria must be denied access and all other universities in the country are in full compliance,” Nkwanyana said.
However, Walter Sisulu University’s (WSU) acting spokesman Thando Cezula said they had not been informed.
“The university is still awaiting formal communication from DHET with regards to this matter. The university on its own doesn’t have any reserves that can be used to write off the debt.”
Cezula said WSU was doing its best to collect money owed by students, but with little success.
“Because WSU did not have any reserves, non-payment of registration fees and scrapping of the existing student debt will adversely affect its operations as it will not be able to pay for its basic operating expenses necessary for an institution to run efficiently.”
Rhodes University spokeswoman Catherine Deiner said the department had communicated with the university in November last year requesting the amount of the historic debt the university had incurred from 2013 to 2015.
“The university responded to this request. We have not yet been notified whether the full amount will be allocated or not. However, NSFAS has contacted the institution stating that the request which was submitted to the DHET last year should be submitted directly to NSFAS. Therefore I cannot give you the figure that will be allocated at this stage,” Deiner said.
“The university is heavily reliant upon student fee income to maintain its academic project.
“Needless to say the non-payment of this historic debt places severe constraints on and indeed threatens the financial sustainability of the university.”
She said students in debt would have to settle what they owed in the absence of alternative sources of funding to settle the historical debt.
Nelson Mandela Metropolitan University (NMMU) communications deputy director Debbie Derry said NMMU was offering 2015 debt relief to those who qualified.
“Like all institutions of higher learning affected by the 0% fee increase and other financial demands, NMMU will be affected going forward.”
The University of Fort Hare had not commented by deadline.
NSFAS said details would be released at a media briefing tomorrow. — msindisif@dispatch.co.za
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