Ricochet News

NSFAS Wants To Recover R8 Billion From Student Loan Defaulters

Jan 28, 2015
NSFAS Wants To Recover R8 Billion From Student Loan Defaulters

The National Student Financial Aid Scheme (NSFAS) is reportedly seeking to recover an estimated R8 billion from beneficiaries who are defaulting on their student loans. It hopes the money could assist in supporting almost double the number of students benefiting from the scheme.

NSFAS is expecting to fund studies for about 415 000 students during 2015.

Still, this year, the scheme announced that it will not be able to fund all students who applied for funding.

While it was accused of delaying communication to applicants on the status of their applications when university registrations opened two weeks ago, NSFAS says it is only aware of 800 students who will not get funding although their applications have been approved.

The scheme said that Wits University approved applications beyond the funding allocated to it.

Now, NSFAS says it will enlarge its funding pool by targeting loan defaulters.

“We think that our recoveries can increase from where we are. Our recoveries this year will be in the region of R3 million.

“There is room and space for those recoveries to increase. It is very difficult to know whether the recoveries are at the right level because you need a lot of data to be able to back that up because we don’t recover base on who owes us. We recover based on the salary of the employee,” it said.