EFF Youth Commander Leader Sihle Lonzi
By Mpho Moloi
The Economic Freedom Fighters (EFF) Youth Command has pointed the finger at the National Student Financial Aid Scheme (NSFAS) for skyrocketing student debt and increasing dropout rates across South Africa’s universities and TVET colleges. In a recent EFF podcast, Sihle Lonzi, EFF Youth Command leader and Member of Parliament, highlighted how NSFAS inefficiencies are trapping students in a cycle of financial stress and academic despair. This comes as the EFF pushes its groundbreaking “Student Debt Relief Bill, 2025,” aimed at wiping out student debt and ensuring graduates receive their qualifications, regardless of what they owe.
A Growing Crisis Among Students
The numbers tell a grim story: thousands of South African students are buckling under the weight of debt, with many unable to graduate despite meeting academic requirements. Lonzi, speaking on the podcast hosted by Titus, explained, “Having to have fulfilled all the academic requirements, students are not able to graduate, they are not able to receive their qualifications, their diplomas, their degrees, they are also not able to receive their certificates due to student debt.” This practice, he argued, keeps young people stuck in poverty and unemployment, unable to use their hard-earned education to improve their lives.
Students from institutions like the University of Johannesburg (UJ), Wits University, and Central Johannesburg TVET College (CJC) shared their struggles on the podcast. One third-year Bachelor of Education student at UJ revealed she owes over R150,000, a debt that started at R122,000 in 2022 and grows yearly with interest. “I register late, sometimes I have to fight to add modules because I’m owing,” she said, adding that her unemployed parents can’t help. She knows friends who dropped out in their final year, unable to pay fees as low as R50,000, their dreams shattered by NSFAS’s failures.
Another student, Neli Swely from UJ, recounted how her funding from Funza Lushaka was dropped mid-2024 due to medical issues, leaving her with unpaid fees and no food allowance. “It’s had a lot of negative effects, linking to my health because I’m someone who has psychiatric disabilities,” she said, highlighting the mental toll of debt on students from poor backgrounds.
NSFAS Under Fire
The EFF Youth Command blames NSFAS for much of this chaos. Lonzi pointed out that the scheme’s centralised system—based in Cape Town—creates delays and confusion. Students at CJC, for instance, start classes in January but often wait until March or April for allowances, leaving them without money for food or transport. “We get our allowances from mid-March and April, it’s an issue to us,” said Katlego from CJC.
Worse still, NSFAS caps accommodation funding below market rates, forcing students to cover the shortfall. “NSFAS only pays the fixed amount, then institutions charge above the cap,” Lonzi explained. This gap turns into debt by graduation, even for fully funded students. A Wits student, Nthabiseng, added that NSFAS wrongly funded her for a TVET college in 2023 despite her enrolment at Wits, leaving her defunded and fighting for allowances.
The Special Investigating Unit (SIU) has uncovered further rot: universities like Wits returned R450 million to NSFAS, and CJC was caught paying “ghost students”—even dead ones. Lonzi slammed this mismanagement, noting that the National Skills Fund underspent by R3.8 billion, money that could have eased student burdens but was sent back to Treasury instead.
The Student Debt Relief Bill: A Game Changer
The EFF’s answer is the “Student Debt Relief Bill, 2025,” tabled in Parliament after months of wrangling with legal advisors. Introduced on 26 November 2024, it was gazetted in early March 2025 as the “Student Debt Relief Bill” despite initial resistance over its name. Lonzi said, “Look, we won’t allow their derailing tactics to delay us ‘cause they’ve now changed the name to Student Debt Relief Bill.” The bill sets up a fund to clear student debt and ensures qualifications are awarded, even if fees remain unpaid.
Currently, South Africans have until 31 March 2025 to submit support via parliament or the EFF’s email (studentdebtcancellationbill@effonline.org). Lonzi urged everyone—students, parents, academics—to back the bill, which could help over 300,000 graduates stuck without certificates. “Immediately institutions must release all degrees, all certificates,” he said, envisioning a future where debt no longer blocks opportunity.
Funding the Fight
Critics question how South Africa can afford this, but Lonzi dismissed the concern. He pointed to R13.8 billion in irregular government spending flagged by the Auditor General, plus billions wasted on deputy ministers and bailouts for state entities like Eskom and SAA. “There’s a lot of money that’s being misused in South Africa,” he said, suggesting a wealth tax, education tax, and better corporate taxation. He also noted that much student debt is “irrecoverable”—like bad debts on a company’s books—arguing universities should release qualifications and let graduates contribute to the economy.
The economic upside is clear: debt-free graduates can work, pay taxes, and grow the tax base. “It’s going to fund itself,” Lonzi insisted, framing it as a moral duty to “bail out the youth” as the government has bailed out failing parastatals.
Voices From the Ground
Students see the bill as a lifeline. Peter from CJC said, “We can’t do our trades without our certificates, so this debt cancellation will be very much useful for us.” Nthabiseng from Wits spoke of the burden on parents: “My mom has had to take out loans for two years because of the fear of me not being able to graduate.” She tied it to broader inequality, noting how black families pin hopes on education, only to be crushed by debt and limited job opportunities.
The podcast also revealed a mental health crisis. Swely linked her debt stress to worsening psychiatric conditions, while others spoke of depression and dropout fears. “I might be one of the dropouts next year,” one student worried, unsure if she could register for her final year.
Beyond the Bill: A Vision for Change
The EFF Youth Command isn’t stopping at debt relief. Lonzi tied the bill to the party’s bigger fight for free, decolonised education—a nod to the Fees Must Fall movement’s 10th anniversary in 2025. He also called out university application fees—R200 to R250 per institution—arguing they’re outdated in an automated era and hit poor matriculants hardest. “We’re pushing for zero charge,” he said.
Looking ahead, Lonzi sees the bill reshaping South Africa. In five or ten years, he envisions a country where “everyone is going to graduate,” free from the anxiety of withheld degrees and bad credit scores. For black students especially, it could level the playing field, letting them access cars, homes, and jobs like their white peers.
Political Stakes in 2026
With local elections looming in 2026, the EFF’s student debt push could boost its support. Lonzi contrasted the party’s stance with the ANC-DA coalition, accusing the Government of National Unity (GNU) of raising VAT—a tax hike the EFF rejects—while shielding big business. “The ANC can’t pass the budget without the DA,” he said, predicting the coalition will cave despite public posturing. The EFF, he vowed, will keep fighting for the poorest, not just for votes but out of principle.
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