Universities South Africa (USAf) says students from the “missing middle” are the primary contributors to the R20 billion student debt burden facing the country’s public universities.
USAf, which represents all 26 public higher education institutions, defines the missing middle as students whose families earn too much to qualify for National Student Financial Aid Scheme (NSFAS) funding but not enough to afford university fees.
According to the organisation’s Chief Executive Officer, Dr Phethiwe Matutu, only around R9 billion of the total debt is expected to be recovered — a shortfall that poses serious financial challenges for universities.
“This level of non-payment means institutions will struggle to fully implement their budgets,” Matutu said.
She further highlighted the financial strain caused by NSFAS limitations, particularly in terms of accommodation support. “There are instances where NSFAS has capped or withheld accommodation funding, leaving students with debt exceeding R600 million in 2023 and 2024. These caps have significant ramifications on university operations,” she added.
The growing debt crisis has reignited calls for a sustainable funding model for higher education, especially one that addresses the needs of the financially strained missing middle.