By Rodger Mandhlazi

A proposed amendment to the National Credit Act has ignited fierce debate in South Africa, with student groups and political parties warning it will deepen inequality. The Department of Trade, Industry and Competition (DTIC) has drafted amendments that would allow credit bureaus to record unpaid fees from university and TVET college students, effectively blacklisting them and damaging their credit records.

The Economic Freedom Fighters (EFF) Student Command has strongly condemned the proposal. Youth leader Sihle Lonzi said it unfairly targets poorer students who already face barriers in accessing higher education.

“Already, students are facing a punishment of qualification withholding. Blacklisting will create a significant obstacle for students seeking employment,” said Lonzi.

The South African Union of Students (SAUS) has also rejected the amendments, calling them a betrayal of decades of student struggles. Vusi Mokoena, a member of SAUS’s National Executive Committee, argued that solutions should involve broader collaboration.

“The issue should not only be about repayment. Government departments, financial institutions and universities need to come together to find lasting solutions,” said Mokoena.

Students themselves have voiced frustration, warning that blacklisting will trap them in a cycle of unemployment and debt.

“I owe my institution over R70,000 and I’m still registered. I continue studying with the hope that I’ll get employment and repay my debts. But how will I now get a job if I’m on a blacklist?” asked Tokelo Mauku, a student at Tshwane University of Technology.

Public submissions on the draft amendments remain open until 12 September 2025, giving students and stakeholders an opportunity to raise their objections.

As the debate unfolds, uncertainty remains over whether government will reconsider the proposal or push ahead. What is clear, however, is that the fate of thousands of indebted students hangs in the balance — and their voices are growing louder.