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SUBMISSION TO COUNCIL
10 FEBRUARY 2015
PROPOSALS ON STUDENT DEBT & NSFAS IN RESPONSE TO
MEMORANDUMS RECEIVED FROM STUDENTS
1. BACKGROUND
In February 2014, there was a student strike at the university. The main demand by the
students was that all financial blocks should be lifted and all students should be allowed to
register without paying the R1 500 minimum initial payment (MIP), as well as not settling the
previous year’s outstanding debt. This was agreed to with the students, however the
students had to sign acknowledgement of debt (AoD), which was not honoured by them.
During the second semester of 2014, students were also allowed to register without paying
the R1 500 minimum initial payment as well as not settling the previous year’s outstanding
debt. However, the students again had to sign AODs, which again they did not honour. This
resulted in the student debt increasing from R134 million in 2013 to R247 million in 2014, an
increase of 84%.
Even though students were allowed to register without implementing financial exclusion
blocks in the second semester, there was another strike by students because there was
insufficient NSFAS funds available to assist all students who qualified for NSFAS. After a
long, protracted and violent strike, Council approved that the university will enter into loan
agreements similar to NSFAS for 2 660 students to the value of just over R46 million.
2. PROPOSAL ON STUDENT DEBT
At a meeting with the Central Students Representative Council (CSRC) on 10 February
2015, the EMC made the following proposal:
Original proposal:
 Students owing R4 000 & below should clear their debts plus pay the MIP of R1 500.
 Students owing between R4 001 and R7 000 should pay 70% of the debt plus the MIP.
 Students owing between R7 001 and R11 000 should pay 50% of the debt plus the MIP.
 Students owing R11 001 and above should pay 30% of the debt plus the MIP.
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Financial Implications: Original Proposal
Total debt
outstanding
0 ≥ 4000
Proposal 1
8 573 863
Reduction
of Debt
8 573 863
4000 ≥ 7000
12 381 371
70%
8 666 960
7000 ≥ 11000
22 586 857
50%
11 293 429
126 592 340
30%
37 977 702
11000 ≥ 110000
170 134 431

66 511 953
The CSRC rejected the above proposal. Upon reflection, the EMC made
the following revised and final offer, which was also rejected by the
CSRC.
Revised and final offer:
 Students owing R4 000 and below should clear their debts plus pay the MIP of R1 500.
 Students owing between R4 001 and R7 000 should pay 50% of the debt plus the MIP.
 Students owing between R7 001 and R11 000 should pay 30% of the debt plus the MIP.
 Students owing R11 001 and above should pay 20% of the debt plus the MIP.
Any remaining balance payable, together with the 2015 fees balance, must be settled by no
later than 30 October 2015.
Students will be required to sign Acknowledgement of Debts (AoDs) for the remaining
outstanding 2014 balances. Monitoring and follow-ups will be done by the Finance
Department in terms of the University’s policies to ensure that debts are settled and paid up.
Financial Implications: Proposal 2 (Revised and Final)
Total debt
outstanding
0 ≥ 4000
Proposal 2
8 573 863
Reduction
of Debt
8 573 863
4000 ≥ 7000
12 381 371
50%
6 190 686
7000 ≥ 11000
22 586 857
30%
6 776 057
126 592 340
20%
25 318 468
11000 ≥ 110000
170 134 431

46 859 074
The CSRC proposed that all students be allowed to register without
paying anything upfront as it happened in 2014.
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3. PROPOSALS ON NSFAS
1. 2014 NSFAS funded students who owe the university money but who are not
NSFAS funded in 2015.
a. Will be allowed to register with outstanding debt but have to make arrangements with
Finance to clear the previous year debt in 2015.
b. Have to follow the normal university Finance processes to register and pay the
minimum deposits.
2. 2014 NSFAS funded students who owe the university money but who will be
funded by NSFAS in 2015.
a. Will be allowed to register with outstanding debt but has to make arrangements with
Finance to clear the debt in 2015.
b. Exonerated from making any upfront payments at registration.
3. 2015 NSFAS funded students
Suggestions to increase the number of student beneficiaries:
a. Option 1: No allocation for neither book (R1 500) nor meal allowances (R4 000) will
release ±R77m which could assist ±2400 additional students. Funding split of 25% to
1st years and 75% to senior students not funded.
b. Option 2: No allocation for books (R1 500) will release ±R21m which could assist
±650 additional students. Students will still receive R4 000 for meals (R400 p.m. x 10
months). Funding split of 25% to 1st years and 75% to senior students not funded.
c. Option 3: Single allocation of R4 000 per student p.a. for allowance purposes with
an opportunity for students to make a once off choice between meals and books or
split thereof. This could be done during the phase of signing contracts and will
release ±R21m which could assist ±650 additional students. Funding split of 25% to
1st years and 75% to senior students not funded.

The Central SRC rejected the above proposals on NSFAS and instead proposed
as follows. The EMC response is indicated in RED:

The meal allowance should be increased to R700 per month (i.e. R7 000 per annum)
and all books should form part of the levies. The increase in the meal allowance to
R7 000 will add an amount of R42 000 000, and that will deplete NSFAS funds quicker
and fewer students will be assisted. Levies for 2015 are already fixed. The EMC will set
in motion a process to make the proposal to the faculties for implementation in 2016.

Students who were funded by NSFAS in 2014 but are not in 2015 should be allowed to
register without any upfront payment. Depending on the amount owed by these students,
they will have to pay a percentage of their outstanding debt and make arrangements with
Finance.
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
Students who have applied for the Fundza Lushaka Bursary Scheme (teacher education)
should be allowed to register without payment. The Acting Vice-Chancellor has
undertaken to liaise with the Department of Higher Education and Training (DHET) to
expedite the selection of Fundza Lushaka applicants.

Subject credits for students in the Faculty of ICT and Public Sector Finance Department
should have their credits reviewed and aligned with the rest of the faculties. The EMC
will begin a review process of credits in the ICT Faculty and Public Sector Finance for
NSFAS eligibility purpose. However, this does not guarantee that they will obtain NSFAS
funding. They will add to the number of students eligible for funding.
Other proposals by the CSRC:
The CSRC further proposed that considering that the fee increment of 12% was above the
consumer price index (CPI), the difference between the CPI and the actual increase should
be redirected towards assisting students who cannot afford to pay fees and could not be
assisted by NSFAS due to depletion of funds.
The EMC responded by saying that while the CPI was at just over six percent, the higher
education price index was at 9.5%, and this is what was used by the EMC. The student fee
increase that was approved by Council was 12 percent. Three percent was set aside for
merit bursaries and nine percent will be used for university operations. There is thus no
money available to be redirected anywhere. Goods and services have increased
dramatically, e.g. staff salary increase was eight per cent, electricity will increase to 12 per
cent in 2015.
PROF LOURENS VAN STADEN
VICE-CHANCELLOR AND PRINCIPAL (ACTING)