Mariëtte van Wyk | Technical Specialist | The BEE Chamber | mail me |
As the 2026 academic year has now started, thousands of South African students face uncertainty about continuing their studies. They struggle because of outstanding university debt.
This challenge has growing implications for access to education. It also affects companies that invest in bursaries as part of their Broad-Based Black Economic Empowerment (B-BBEE) strategies. In many cases, unpaid student debt now directly shapes both academic progression and corporate skills pipelines.
Gaps in bursary funding structures
Student debt remains one of the most persistent barriers to progression in higher education in South Africa. Many corporates allocate significant resources to bursaries to develop future skills. They also seek to earn B-BBEE points under the skills development category. However, incomplete funding structures often prevent students from registering for the next academic year. As a result, unpaid student debt weakens the intended impact of these investments.
A key challenge arises when company bursaries do not cover the total cost of study. Companies may fund tuition fees. However, they often exclude accommodation, registration fees and historical debt. Consequently, students may qualify academically to progress. Yet universities block them administratively because of outstanding balances.
In effect, unpaid student debt interrupts academic continuity even when bursary support exists. University policies on outstanding debt vary. Some institutions allow students to register if they formally acknowledge the debt.
Others permit registration only when the outstanding balance falls below a specific threshold. In many cases, however, institutions deny registration entirely. This contributes to high dropout rates and stalled qualifications. Therefore, the treatment of unpaid student debt differs across institutions.
NSFAS support and accommodation shortfalls
The above inconsistency creates additional uncertainty for students who depend on timely registration to secure accommodation, access learning platforms and maintain funding eligibility.
The National Student Financial Aid Scheme (NSFAS) provides bursary funding to students from households earning below R350,000 per year. Students from households earning between R350,000 and R600,000 may qualify for NSFAS loans.
These mechanisms play a critical role in widening access to higher education. However, accommodation funding often remains insufficient. It does not fully cover university residences or private housing. As a result, many students lack viable living arrangements near their institutions. In such cases, unpaid student debt compounds financial strain.
Students must manage historical balances while securing accommodation and meeting daily living expenses.
Corporate risk and B-BBEE implications
From a corporate perspective, this situation creates a disconnect between intention and outcome. Companies may meet the technical requirements for awarding bursaries. However, they still lose long-term skills development benefits when students cannot complete their studies. In these cases, transformation objectives linked to B-BBEE scorecards suffer. This does not occur because of non-compliance. Instead, structural gaps in funding design create the problem.
The BEE Chamber advises companies to adopt a more holistic approach to bursary programmes. Companies should conduct due diligence on the total cost of the study. They must understand university debt policies. In addition, they should consider support mechanisms for accommodation and historical debt where feasible.
When companies structure bursaries to support student completion rather than annual enrolment alone, they improve educational outcomes. They also strengthen the sustainability of skills development initiatives. Addressing unpaid student debt within bursary design can therefore protect both student success and B-BBEE value.
South Africa must continue to rely on education as a cornerstone of economic inclusion and transformation. However, stakeholders must address the realities of student debt directly. For both companies and students, bridging these funding gaps is not only a matter of compliance or access. It is also a critical step toward ensuring that investment in education delivers lasting value.
