Economic Freedom Fighters (EFF)
By Thabo Mosia
Economic Freedom Fighters (EFF) Member of Parliament and leader of the EFF Students Command, Sihle Lonzi, has introduced the Students’ Debt Cancellation Private Member Bill, 2024. This legislative proposal aims to alleviate the financial burdens that hinder many students from accessing higher education and entering the workforce.
The Student Debt Crisis in South Africa
Student debt in South Africa has reached alarming levels, with recent reports indicating that the total debt owed by students to higher education institutions has soared to R16.5 billion.  This financial strain has resulted in over 100,000 students being unable to graduate due to outstanding fees, effectively barring them from contributing to the economy and improving their personal circumstances. 
The University of Pretoria, for instance, has reported that 60,043 students owe the institution a cumulative debt of R2.3 billion, with 1,327 degrees withheld due to unpaid fees.  Similarly, the University of Johannesburg has approximately 33,000 students with outstanding debt, and the University of Cape Town has 2,717 students owing R128 million. 
Key Provisions of the Bill
The proposed bill seeks to:
• Clearance of All Student Debt: Mandate the cancellation of all outstanding student debt across South African higher education institutions.
• Establishment of an Open-Access Higher Education Qualifications Registrar: Create a centralized system to ensure that all students receive their qualification certificates, regardless of any outstanding debt.
These measures aim to dismantle the financial barriers that prevent students from accessing their academic qualifications and entering the job market.
Rationale Behind the Bill
Lonzi emphasizes that the current system exacerbates existing societal inequalities, particularly affecting black students who are disproportionately burdened by student debt. He argues that withholding academic certificates due to unpaid fees traps graduates in a cycle of poverty and unemployment, undermining their potential contributions to the economy.
“As the year commences, many students will not be able to register because of student debt. Others completed their studies but cannot receive their degrees and certificates because of student debt. We must all rally behind the EFF Private Member’s Bill to #CancelAllStudentDebt!” Lonzi stated. 
Support and Opposition
The bill has garnered significant support from student bodies and youth organizations advocating for accessible education. However, critics argue that the blanket cancellation of student debt could strain the national budget and set a precedent that may encourage financial irresponsibility.
Universities South Africa (USAf) has expressed concerns about the sustainability of such a policy, noting that student debt increased from R11.3 billion in 2018 to R16.5 billion in 2021.  They caution that without addressing the underlying issues of funding and financial management, debt levels may continue to rise.
Government’s Stance
The Department of Higher Education and Training has acknowledged the challenges posed by mounting student debt. In previous years, the government allocated additional funds to the National Student Financial Aid Scheme (NSFAS) to settle historical debt owed by students. For instance, in 2019, an additional R967 million was allocated to NSFAS to settle the historic debt owed to universities by some 52,514 students.  However, systemic issues persist, and the department has yet to take a definitive stance on the proposed bill.
Next Steps
The bill is scheduled for introduction in the National Assembly during the second quarter of the 2024/2025 financial year. It will undergo a rigorous legislative process, including public consultations and debates, before any potential enactment.
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