- Proposal would allow student debt to be blacklisted at credit bureaus.
- Concerns raised about barriers to education and future opportunities.
- Public comments on the amendment open until 12 September 2025.
(Image Credits : sabc-news-Collen-Malatji)
The ANC Youth League (ANCYL) has come out strongly against a proposed amendment to the National Credit Act that would allow student debt to be recorded at credit bureaus.
ANCYL Secretary-General, Mntuwoxolo Ngudle, said the league is deeply concerned about the proposal put forward by the Department of Trade, Industry, and Competition. The amendment would mean that students with unpaid loans could be flagged as high-risk borrowers, potentially damaging their financial standing for years.
“This move will lock students out of opportunities once they are blacklisted. Instead, government should introduce policies that address the cancellation of student debt,” said Ngudle.
He added that placing young people on credit blacklists undermines their constitutional right to education and discourages self-improvement. The Youth League is calling for the proposal to be withdrawn immediately, insisting that youth formations must be consulted on any changes affecting students.
Public comment period
The public has been given until September 12, 2025, to provide feedback on the proposed revisions. Submissions follow the gazetting of the draft changes on 13 August 2025.
NSFAS and the debt crisis
The debate comes against the backdrop of ballooning student debt. The National Student Financial Aid Scheme (NSFAS) recently disclosed that it is owed more than R45 billion by students who received funding before 2018. Over 800,000 students are estimated to owe money to the scheme.
Despite various collection efforts, including partnerships with law firms, NSFAS has struggled to recover these funds. Many graduates who are now employed have reportedly resisted repayment.
Impact of credit blacklisting
Being listed at a credit bureau can severely restrict access to loans, housing finance, and even bank accounts. Young graduates with blacklisted credit records would find it harder to buy homes, cars, or secure financial services.
Ngudle stressed that the measure would punish young people striving for education:
“It is unacceptable to put young people on a blacklist just for going to school. Education is a constitutional right and should never be hindered.”