South Africa’s higher education sector is facing a deepening student debt crisis, with outstanding debt at universities and colleges now reaching R59 billion.

During a briefing to Parliament’s Portfolio Committee on Higher Education and Training, the Department of Higher Education and Training (DHET), Universities South Africa (USAF), and the South African Public Colleges Organisation revealed that more than 165,000 qualification certificates are currently being withheld because of unpaid student fees.USAF placed the number even higher, reporting that universities are withholding over 188,000 certificates.

The committee heard that students funded through the National Student Financial Aid Scheme (NSFAS) account for R29 billion of the debt, while self-funded students owe around R26 billion.Institutions are also dealing with approximately R12 billion in debt considered irrecoverable.

Parliament warned that withholding certificates prevents graduates from accessing employment opportunities, making it even harder for them to repay what they owe.

Portfolio committee chairperson Tebogo Letsie said the continued increase in student debt shows that current interventions are failing to resolve the problem effectively.He also highlighted ongoing administrative and reconciliation disputes between NSFAS and universities as a major contributor to the crisis.Additional pressures include rising accommodation costs and delayed NSFAS payments to institutions.

According to DHET, universities of technology are carrying the highest debt burdens, although traditional universities are also under severe financial strain.The committee further warned that the financial survival of many universities is closely linked to the stability of NSFAS.

Parliament has now called on the department to urgently resolve disputes between institutions and NSFAS and to develop a more sustainable long-term student funding model.