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Wednesday, December 17, 2025

EFF slams move to criminalise student debt 

By Johnathan Paoli

The Economic Freedom Fighters (EFF) has written to the Chairperson of Parliament’s Portfolio Committee on Higher Education, Science and Innovation, Tebogo Letsie, requesting an urgent joint sitting with the Portfolio Committee on Trade, Industry and Competition to address what it describes as “a devastating and anti-poor” draft regulation that threatens millions of students across South Africa.

EFF’s Sihle Lonzi, a member of the Higher Education Portfolio Committee, penned the strongly worded letter, warning that the proposal would entrench economic exclusion for poor and working-class youth.

“It is no secret that the majority of students struggling to pay university fees come from poor and working-class communities, ravaged by the legacy of apartheid and ongoing structural inequality. This proposed amendment to the law will punish them for being poor by turning their unpaid fees into permanent scars on their credit records,” Lonzi argued.

The regulation in question, published in Government Gazette 53154, proposes that universities and other higher education institutions be permitted to report unpaid student fees to credit bureaus. This, according to the EFF, would effectively criminalise student debt by saddling young graduates with blacklisted credit records.

The EFF contends that blacklisting young graduates for unpaid fees will create long-term economic consequences, barring them from accessing loans for housing, cars, or business start-ups, and trapping them in generational poverty.

“This is a life sentence, keeping our youth trapped in cycles of poverty and exclusion, before they even have a fair chance to build their futures,” Lonzi said.

The party insists that the draft regulation undermines the very principle of education as a liberating force.

It has called for a coordinated parliamentary response, demanding Letsie convene a joint sitting between the two committees to scrutinise the department’s proposals. Alongside its opposition to the draft regulation, the EFF previously released the first draft of its Student Debt Relief Bill, 2025, which it describes as a legislative breakthrough aimed at dismantling the “structural crisis” of student debt in South Africa.

According to the EFF, more than 500,000 students nationwide are weighed down by institutional debt. Of these, around 300,000 have completed their academic requirements but are unable to graduate or obtain certificates due to outstanding fees.

In 2022 alone, over 120,000 students were barred from graduating. Student debt, which stood at R16.5 billion in 2021, has ballooned further.

“This is not failure; this is poverty being weaponised,” Lonzi said, stressing that debt exclusion is not simply a financial issue but a structural barrier to economic mobility.

The Bill proposes the creation of a state-backed Student Debt Relief Fund, through which eligible students may apply to have their debts cancelled.

Importantly, the fund would reimburse universities and colleges, protecting institutional finances while lifting the burden off students. The draft legislation also seeks to compel all higher education institutions to release qualifications to students who have completed their studies, regardless of outstanding balances.

EFF national spokesperson Sinawo Thambo framed the Bill as “a people’s bill, grounded in the pain and suffering of students who have been excluded for too long”.

He argued that clearing debt would empower graduates to enter the workforce and stimulate the economy.

“This is not simply about financial relief; it is about restoring dignity, enabling graduates to work, to specialise, to start businesses, and to participate in the economy,” Thambo said.

Parliament has opened a 30-day public consultation period on the draft Bill, inviting written submissions from students, academics, trade unions, civil society organisations, and the general public.

The EFF has also announced nationwide consultative meetings at universities and TVET colleges to refine the legislation and build momentum.

INSIDE EDUCATION

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