The issue of free, quality higher education has been one of South Africa’s most pressing debates.
In 2017, thousands of students shut down campuses and marched to the Union Buildings under the banner of the #FeesMustFall movement. Their demand was simple: education should not be a debt sentence.
The protests culminated in then-President Jacob Zuma announcing that free higher education would become a reality. The first step was converting the National Student Financial Aid Scheme (NSFAS) from a loan structure to a bursary system.
But there was a catch.
Students who had benefitted from NSFAS before 2017 still had to repay their loans. According to the scheme, they owed around R45 billion, with only a small fraction paying back once they found employment.
Now, proposed changes to the National Credit Act have ignited fears that this debt could lead to blacklisting.
The Claim
Activists say the regulations would allow unpaid student fees to be reported to credit bureaus putting young graduates on the same blacklist as defaulters on retail accounts or cellphone bills.
Thato Masekoa from the South African Union of Students warns:
“This bill will negatively affect NSFAS beneficiaries… if they didn’t manage to pay back loans they will be blacklisted. They are effectively being excluded from participating in the economic centre of the country at a young age.”
The Pushback
Civil society groups aren’t letting this go unchallenged. Activist Sabelo Chalufu has already launched a petition, arguing that the proposed law could crush opportunities for graduates before they even step into the workplace.
“So I started this petition that I’ve been running now since the weekend to say, we need to raise awareness. People need to know that this is coming and people need to play their part. And they need to play their part as I propose by simply rejecting this proposal. Rejecting the proposal, at least to the extent that it continues to present the risk that people can be blacklisted.”
What’s at Stake
South Africa has had over five million NSFAS beneficiaries since the scheme began. Many of them came from households that could never have afforded university.
Masekoa says this is exactly why the proposed reforms feel like a betrayal of the promise of free education:
“NSFAS funds the poorest of the poor… once those that will take loans because they could not afford.”
For graduates, the stakes are clear. Chalufu explains:
“Think of this situation: you went to university, you studied, you accrued a certain amount of debt or outstanding fees. And now you’ve finished your qualification, you are seeking employment. What these regulations will do is that if you are now in this situation and you are seeking employment, but because you are not yet able to pay, you can be blacklisted. What does that do? That means you simply will struggle to find a new job now.”
Government’s Position
The Department of Trade and Industry has pushed back, insisting that the reforms are not aimed at students.
But Chalufu argues that the wording of the bill still leaves the door wide open:
“If he doesn’t intend for people to be blacklisted, if he doesn’t intend to even create the possibility of people being blacklisted on the basis of these regulations, then he can delete the references — the references that create that risk. Simple as that!”
Verdict
So, can you really be blacklisted for unpaid student debt?
The proposed amendments to the National Credit Act do create the possibility of student debt being reported to credit bureaus. However, government insists that this is not their intention. Until the language in the draft is clarified or amended, the risk remains real but not yet enforceable.
In short: the claim is partly true. Students are not automatically being blacklisted right now, but the proposed law leaves that door open.
