Parliament, Friday, 29 May 2026 – The Portfolio Committee on Higher Education has raised serious concern over the escalating student debt crisis, with outstanding debt across the post-school education system now standing at a staggering R59 billion.
The committee heard from Universities South Africa (USAF), that the National Student Financial Aid Scheme (NSFAS) is responsible for contributing nearly half of this amount with debt amounting to R29 billion coming from NSFAS-funded students. Self-funded students contributed R26 billion to the total student debt while the rest was made up of irrecoverable debt of R12 billion.
These numbers emerged during a briefing from the Department of Higher Education and Training (DHET), USAF and the South African Public Colleges Organisation on student debt and the withholding of students’ certificates across the post-school education and training system.
DHET indicated that 165 000 qualification certificates are currently being withheld because of outstanding student debt and said this figure is alarmingly high. Meanwhile USAF said the number of student certificates withheld by universities totals 188 209.
DHET noted that universities of technology show the highest debt ratios, while traditional universities still carry a substantial absolute debt balance. Furthermore, DHET said the statistics confirmed that student debt is not isolated to one institutional category but is a sector-wide financial issue.
An important driver of rising student debt is the increasing cost of student accommodation, which has become a major contributor to overall indebtedness across the sector. The shortage of affordable student housing, rising private accommodation costs, higher transport expenses and delays in NSFAS accommodation payments have all added to the financial strain facing students and institutions. The committee noted that NSFAS-related debt stems from reconciliation challenges between NSFAS and institutions and accommodation fees that go beyond the NSFAS cap.
The committee observed that ongoing reconciliation problems between NSFAS and institutions continue to affect students negatively and is one of the factors contributing to student debt.
The committee Chairperson, Mr Tebogo Letsie, said: “The statistics show that student debt is continuing to rise, which suggests that the measures put in place are not working as intended. We all agree that NSFAS has shortcomings. However, the problem is that when a student leaves an institution without a certificate, their chances of finding a job and paying off that debt become even smaller, because they cannot prove that they have the qualifications needed for employment.
Lastly, Mr Letsie said the issue of finding a comprehensive student funding model is extremely urgent. There is no university that will survive for five years if NSFAS collapses. It is in the best interests of everybody in the system to make sure that NSFAS does not collapse. The department must play a critical role in resolving issues between USAF and universities. The department must also ensure that NSFAS finalises the long-awaited close-out report as a matter of urgency.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING, MR TEBOGO LETSIE.
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