More than 4% fee increase on the cards for universities this year

The Department of Higher Education and Training has proposed a 4.23% tuition fee increase for the 2022 academic year, and a maximum of 6.23% for accommodation, at universities across the country. 

Higher Education, Science and Innovation minister Blade Nzimande said during a Post School Education and Training (PSET) sector media briefing on Tuesday the increases were agreed upon as part of a social compact that has been in place since 2016. 

“Since 2016, we have worked together with the sector on inflation-linked increases to ensure that fee increases remain affordable.

“In this regard, for the 2022 academic year, a CPI [Consumer Price Index] increase, to a maximum of 4.23% for tuition fees and CPI+2%, to a maximum of 6.23% on accommodation fees, has been proposed,” Nzimande said.

Nzimande said the department was working on a fee regulatory policy framework, but that the cost of providing university education continued to increase. This would render increases lower than inflation fee increases unsustainable. 

“Fee increases are necessitated by obvious factors, including the increase in workers’ wages and staff salaries; increase in electricity and water tariffs; rising food prices; books and learning materials, and generally the rise in inflation.”

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Student debt 

Nzimande said at the start of the 2021 academic year, students owed an estimated R6.1 billion. 

Audited accumulated gross student debt, as of 30 December 2020, stands at R16.5 million, a figure that includes students who have already left university. 

“A survey conducted by the department in 2021 showed that an estimated 56.2% of students with debt owe less than R10 000; 32.9% owe between R10 000 and R50 000, and 10.9% owe more than R50 000. 

“The survey also showed that National Student Financial Aid Scheme (NSFAS) students owe R5.3 billion.”

Nzimande added that government contributed R1.7 billion to NSFAS as part of a “due diligence exercise” in 2018. 

A comprehensive student financial aid model is also underway, which would incorporate existing funding available from the State, and alternative funding sources, he explained. 

He said there were concerns about students that were part of the “missing middle”, and that there was an urgent need for more postgraduate funding opportunities. 

A report from a Ministerial Task Team appointed in 2021 to support the development of a new student financial aid policy is also expected in the first half of this year. 

“The Ministerial Task Team has already started engaging the banking community and progress has been made in this regard. 

“For the current term, we are in discussions with the Banking Association of South Africa on work that needs to be done to develop a possible loan scheme for students falling outside the NSFAS funding regime,” Nzimande said. 

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Less disruptions this year 

Nzimande said the past two years have been challenging for the PSET sector, due to disruptions owed to Covid-19 lockdowns and restricted access to classes. 

However, he said the system remained “adaptive” and resilient, and that this year would hopefully see less academic disruptions. 

Cabinet has approved changes to adjusted alert level 1 Covid-19 regulations, Minister in the Presidency Mondli Gungubele announced earlier this week, following meetings of the National Coronavirus Command Council and the President’s Coordinating Council.

Part of these changes involve primary, secondary and special schools returning to daily attendance, with the regulatory provision for social distancing of one metre for pupils in schools no longer in place.

Nzimande emphasised the need for staff and students to receive their Covid-19 vaccines as full-contact learning resumes. 

“Those who assert their right not to vaccinate, must also know that those who choose to vaccinate also have their rights to be protected against possible infection. 

“In addition, the guidelines that I will release will take into account the latest national regulations and how they will impact on PSET institutions,” Nzimande said.

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