The South African Union of Students (SAUS) has thrown its weight behind a campaign urging Minister of Trade, Industry and Competition, Parks Tau, to rethink the potentially devastating amendments to the National Credit Act. The university students’ organisation has expressed strong opposition to a gazette proposal that could see indebted students and graduates blacklisted, compounding the difficulties facing the nation’s youth as they navigate their post-academic financial futures.
Under the proposed amendments, which were introduced for public comment by the department, higher education institutions would be added to a growing array of entities, including the financial banking sector, court judgements, and debt collectors, capable of lodging negative information against student borrowers. The department has argued that these changes aim to “strengthen consumer protections” and enhance how credit bureaus manage customer information and conduct credit assessments.
However, Vusi Mokoena, a member of SAUS’s National Executive Committee, has vehemently rejected the proposal, labelling it a betrayal of the historical struggles fought by generations of students, particularly highlighting the protests embodied in the #feesmustfall movement. “Our president has already made the submissions and written directly to Minister Parks Tau, because we see this as a betrayal of the struggle that we fought for. Now we are subjecting students to these unfair circumstances,” Mokoena stated during an interview with YOUFM Newshour.
Mokoena argues that many of those targeted by the proposed changes are no longer students and highlights that many current debts stem from inadequacies in the funding system established by the government. “The department must hold itself accountable for the poor system that they have,” he insisted, calling for a complete reassessment of how the processes involve students and financial aid are managed.
“It wouldn’t be fair to want to put all the blame on the students who will now carry more burden on their shoulders when in fact all stakeholders involved in issuing student loans should be the ones held accountable,” Mokoena added.
The SAUS has noted that many students continue to struggle to secure funding, with the National Student Financial Aid Scheme (NSFAS) revealing that it is owed a staggering R45 billion in unpaid loans by former beneficiaries. According to NSFAS CEO Waseem Carrim, the situation has led the scheme to call on graduates to repay their debts. Mokoena maintains that reliance on NSFAS alone is misplaced. “We believe that the focus cannot be only on the NSFAS alone, but all the relevant departments and other stakeholders must join forces in settling the debt. Where will students get the money to settle their debts?” he queried, emphasizing the financial strain that many students and their families currently face.
In agreement with SAUS, Sihle Lonzi, the Economic Freedom Fighters youth leader and Member of Parliament, concluded that the proposal unjustly discriminates against poorer students who already face additional burdens such as having their qualifications withheld by universities due to unpaid fees. As public commentary on the proposed amendments remains open until Friday, September 12, 2025, the student body and their supporters urge fellow South Africans to engage with the issue before it potentially becomes an entrenched reality.
