The National Student Financial Aid Scheme (NSFAS) has approached companies that employ its debtors in an effort to recover the billions in outstanding student loans.
A total of R21 billion ins student loans is outstanding, which includes, current an former students (both employed and jobless).
Although it is not the responsibility of companies to collect the debt, NSFAS says that they can assist by helping them trace the debtors.
The financial aid scheme explains that R7 billion is the fair value that they expect to realistically recover.
NSFAS spokesperson Kagisho Mamabolo explains that failure to comply with loan agreement terms renders a loan immediately payable.
"NSFAS will follow the debt recovery processes to ensure that the debtor is enlisted through the Credit Bureau."According to Mamabolo, state agencies such as Sars have committed to assist in the intervention. Sars will confirm and provide NSFAS with the latest non-financial information submitted to it by debtors. NSFAS will use the information from Sars to approach companies that employ its debtors, Mamabolo says.
"We will ask the companies to facilitate contact.. we can also record the income they get to recalculate what they should pay."Mamabolo has urged employed graduates to pay back their debt in order to help educate young people who cannot afford tertiary education. SOURCE: 702