Stellenbosch University withholds 1,429 degrees as student debt surpasses R1.1bn

Funding challenges affect those supported by the National Student Financial Aid Scheme, and ‘missing middle’ students

More than 1400 degree certificates had been withheld at Stellenbosch University as of 31 December 2025. (Internet)

More than a thousand graduates at Stellenbosch University have been unable to receive their qualifications due to unpaid fees, as the institution’s student debt burden continues to climb past the billion-rand mark.

This emerged during a presentation to parliament’s higher education portfolio committee on Wednesday, where the university revealed that 1,429 degree certificates had been withheld as of December 31 2025.

The institution reported that outstanding student fees had risen to more than R1.1bn, marking a 23% increase from 2024.

Despite ongoing credit risk management efforts, the debt has grown steadily, with Vice-Chancellor Prof Deresh Ramjugernath noting an average annual increase of 18.3% over the past decade. The university serves about 35,000 registered students.

Presenting on behalf of the student representative council (SRC), chairperson Pulane Mtshali outlined the financial and social pressures facing students.

She highlighted funding challenges affecting those supported by the National Student Financial Aid Scheme (NSFAS), as well as “missing middle” and international students.

“Missing middle” students, those from households earning between R351,000 and R600,000 annually, remain particularly vulnerable. While their income exceeds the threshold for government aid, it is often insufficient to cover the full cost of university education.

Efforts are being made to trace people who were in close contact with the Stellenbosch University student. File photo
More than a thousand graduates at Stellenbosch University have been unable to receive their qualifications due to unpaid fees, as the institution’s student debt burden continues to climb past R1bn. File photo (Stellenbosch University)

Mtshali said the burden extends beyond tuition to accommodation, textbooks, transport and daily living expenses, placing significant strain on academic performance, well-being and family finances.

Ramjugernath said the university is owed R276m by NSFAS for the current year, of which only R55m has been received so far. The cumulative outstanding NSFAS-related amount stands at R730m.

Student accommodation in Stellenbosch was also flagged as both limited and expensive.

Mtshali noted that many students are forced to prioritise affordability over safety and proximity to campus.

In some cases, landlords set rental prices close to NSFAS allowance limits, effectively maximising what students can pay under the subsidy. These areas, she said, are often associated with higher crime levels, negatively affecting student safety and living conditions.

According to Ramjugernath, annual accommodation costs on the Stellenbosch campus range from R61,376 for a double room in a junior female residence to R78,358 for a bachelor flat in a senior residence.

At the Tygerberg campus, fees range from R49,482 for a double room in a junior female residence to R84,796 for a single en-suite room.

The SRC has recommended expanding donor funding for the Student Debt Working Group (SDWG), which assists students with reducing historical debt and improving their chances of registration. For the 2026 academic year, the registration debt cap was set at R10,000 for self-funded students, while NSFAS-funded students are subject to specific categorisation measures.

The SDWG currently manages a budget of R16m and has processed over 1,000 student applications, with around 200 receiving successful debt relief.

Mtshali further urged the university to develop regulated lease agreements with landlords to ensure accommodation pricing aligns with NSFAS caps, strengthen safety measures around campus and nearby residential areas, and improve funding mechanisms.

She also called for clearer financial support systems, policy reviews and guidance to reduce pressure on students while maintaining institutional financial sustainability.

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