Draft Legislation Could Have Significant Impact On Student Debt

Thousands of students obtain qualifications after years of hard work. However, they are prevented from graduating due to their student debt.

Member of Parliament Sihle Lonzi has announced his intention to introduce the Student Debt Relief Bill, 2025 in the National Assembly, aiming to address the ongoing student debt crisis in South Africa.

The draft Bill seeks to establish a Student Debt Relief Fund, which would assist qualifying students in settling their outstanding tuition fees.?

It also proposes that students who have met academic requirements receive their qualifications, regardless of their outstanding debt.

In terms of the draft Bill any student may, based on a set criterion, apply to the Fund for the Fund to pay off their debt to an institution of higher learning to enable a student to graduate.?

Student debt in South Africa is staggering and continues to grow. It is estimated that institutions of higher learning in the country are owed around R17 billion by students.?

This debt mainly impacts graduates who cannot obtain certificates due to unpaid fees. This makes it difficult for them to secure employment without proof of their qualifications.?

MP Lonzi says this places students in two undesirable scenarios. Either these students start their careers burdened by lifelong debt or remain jobless as institutions withhold their qualifications. Addressing student debt is urgent.

Furthermore, the draft Bill will make provision for all students who have met their academic requirements to receive their qualifications irrespective of their debt to the institution of higher learning.

Interested parties have 30 days to submit written comments on the proposed Bill to the Speaker of the National Assembly via mail, email, or in person at Parliament in Cape Town.

This article was authored by Ryan Cloete