By Jana Burger
Stellenbosch University (SU) has seen a 60% increase in student debt from the end of 2024 to the end of 2025, amounting to R1 120 882 290. These were the statistics provided by SU at a meeting with the Portfolio Committee on Higher Education on 29 April, but it’s a bit more nuanced than that.
Dr Nkosinathi Sishi, Director-General (DG) of the Department of Higher Education, states that SU “remains financially robust” upon reviewing their 2024 annual report and financial statements. He continues to explain how SU’s reserves have increased from 2023 to 2024, from R19,4 billion to R21,4 billion, leaving SU in a stable position for long-term financial sustainability. Despite its prosperous financial state, it is still trying to find a solution for student debt.
Prof. Deresh Ramjugernath, SU Rector and Vice-Chancellor, explains in his presentation that outstanding student fees have increased by 60% from 2024, amounting to R1 120 882 290 on 31 December 2025. R454 million (or 40%) of this total is money that the National Student Financial Aid Scheme (NSFAS) owes SU. This means a 23% increase in student debt if the money owed by NSFAS was excluded.
Chief Director of Finance at SU, Manie Lombard, explains that much of this debt also comes from continuing students who postpone their payments until just before registration. Additionally, R300 million of the total debt comes from unregistered students who are no longer at the university, meaning those who have finished their degrees or who have dropped out of SU.
Withheld degree certificates
Prof. Ramjugernath further explains that a large portion of the total student debt comes from the missing middle students and that 1 429 certificates were withheld as of 2025 due to student debt. The Chairperson of the Portfolio Committee of Higher Education and a member of Parliament, Tebogo Letsie, states that withholding certificates is an ineffective strategy, because the chances of these students finding employment is “almost zero”.
He suggests that the Department of Higher Education forms an agreement with the South African Revenue Service (SARS) and Home Affairs, on behalf of the universities, where all qualifying graduates receive their certificates unconditionally. Each graduate’s identity number can then be linked to their tax number to enable debt recovery once that graduate makes an income.
Prof Ramjugermath acknowledges that SU “would definitely consider” this suggestion, but that it would first have to go through their governance structures as an institution to be implemented.
SRC concerns
The Students’ Representative Council (SRC) highlighted their concerns about the debt from the missing middle students and higher registration costs for international students. They also state that NSFAS is plagued by “systematic administrative failures”. They acknowledge the Standard Bank loan agreement, for which SU has signed surety on behalf of students who qualify for the loan.
The loan agreement had, however, limited impact, as it was only implemented after the registration period. They explain that student debt cannot just be solved by creating new private debt loans and that these loans need to be accompanied by bursaries.
The SRC recommends SU to expand donor funding for the Student Debt Working Group (SDWG), introduce flexible registration payment structures for returning international students and to review and adjust upfront financial requirements for academically progressing students.
Chairperson queries
Letsie voices his concerns that SU needs four times more money to manage their student accommodations to break even, compared to the University of Pretoria (UP). SU does not have a reason for why this is the case. Letsie also accuses SU, saying, “You are technically excluding poor students.”
This refers to the registration block that builds up as students progress through university and how it prevents some students from finishing their degrees. This is in response to the SRC’s comment about how a lot of student debt comes from the high student accommodation prices, which does not fully get covered by NSFAS.
Striving for solutions
The Institutional Forum (IF) reports that the overriding objective of the SDWG in combating student debt is to facilitate student registration. The registration cap for 2025 was R10 000, while NSFAS students were subject to specific risk categorisation measures. According to the SRC, SDWG managed a budget of R16 million. 200 students who applied for help from the SDWG were able to receive successful debt assistance outcomes, with R134 million outstanding debt remaining among applicants.
The IF notes that, even though the SDWG works well, an increasing number of students arrive on campus every year without having secured accommodation. The university has two ad hoc structures (the SDWG and the Emergency Accommodation Task Team), which lack formal institutional homes. The IF recommends that a specific unit within the university takes accountability for these bodies, as their unanchored status creates a sustainability risk.
Prof. Ramjugernath ends the part of his presentation regarding student debt, stating that “SU prioritises improved debt management, enhanced collection processes and more effective financial planning to mitigate this risk, while still engaging with national stakeholders on the systemic funding challenges”.
