Nsfas writing off almost R2bn in historic debt, DA says

The Democratic Alliance (DA) says the National Student Financial Aid Scheme (Nsfas) was currently in the process of writing off R1.963 billion in historic debt.

In a statement, DA MP Belinda Bozzoli said the matter was revealed in a response by Minister of Higher Education, Science and Technology Blade Nzimande to a DA parliamentary question.

Bozzoli said the DA called on Nzimande to give clarity on what criteria had been used to write off this debt and who paid for the costs associated with the written-off debt, “which was at present most likely carried by universities themselves”.

“As far as the criteria are concerned…if the process of clearing historic debt is based solely on non-payment by past beneficiaries, it is an indictment on NSFAS for not collecting monies owed to it and those individual beneficiaries for failing to pay back.

“But if the process is based on previous beneficiaries not being able to pay due to long-term and persistent unemployment, it’s an indictment on the government, who have overseen the growth and consolidation of an unprecedented and horrifying unemployment crisis in our country,” she said.

The MP said while the DA supports Nsfas writing off the historic debt of qualifying poor students who were currently studying, the party cannot condone Nsfas writing off the historic debt of those who were able, but unwilling to pay, and who may never have been forcefully required by Nsfas to pay.

“Nsfas has never been any good at recovering monies owed to them, and this has led to a grave injustice.

“Individuals who obtained a good job after their graduation have simply been let off the hook, robbing current and future students of an opportunity to access higher education opportunities.

“They should have been compelled to honour their responsibilities. On the second issue, if universities are currently carrying the debt, in the form of fees or accommodation not paid, will the writing off of the debt mean that the universities will have to write it off too?

“If so, this might prove unaffordable for many universities, most of which are struggling financially themselves at present,” she said.

(Compiled by Molefe Seeletsa)

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