NSFAS warns defaulting debtors

2017-12-15 13:45

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Pay back the money or face being blacklisted.

That’s the stern warning from the National Students Financial Aid Scheme (NSFAS) to its former beneficiaries who have until December 31 to make arrangements to start paying their loans back.

NSFAS is telling 467 281 of their debtors who collectively owe R20 billion in unpaid student loans that it’s time to pay up. The entity has been working with the SA Revenue Service to track down student loan defaulters.

NSFAS has already started sending SMSes urging former beneficiaries to start making arrangements to repay loans.

Spokesperson Kagiso Mamabalo said: “It is a concern that people are failing to pay their debt and a high number of them are employed and earning reasonable amounts, which could allow them to pay back their loans.”

Mamabolo told The Witness that although they have managed to recover up to R367 million, the financial aid scheme was still under a lot of financial pressure.

“The money we receive from recoveries plays a vital role in the organisation as the funds are reinvested into a new budget which allows us to fund more students. The success of the collections is so crucial and has a huge impact on the running of the organisation.”

He said this year, since the opening of the application process in August, they were receiving up to 5 000 applications per day.

“... We are currently sitting at more than 281 000 applications. If the loans are not repaid, it will essentially mean the entity will be unable to fund more students.”

He said the repayment of student loans was based on the earnings of each debtor, and start once a debtor earns a salary of R30 000 or more per year.

“Payments start at three percent of your annual salary, increasing to a maximum of eight percent when a salary reaches R59 300 or more per year.”

All debtors who want to initiate their repayments should contact NSFAS at 086 006 7327 or e-mail recoveries@nsfas.org.za

Read more on:    pietermaritzburg  |  nsfas

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