To: The Minister of Trade, Industry and Competition (DTIC), National Credit Regulator (NCR), Parliament of South Africa

Who is affected?

The proposed draft regulation of the National Credit Act aims to classify student debt as regular consumer debt. This change may affect students and young South Africans by potentially leading to credit reporting challenges, limited access to loans, and increased financial pressure. Universities and families may also experience related impacts.

What is at stake?

If the regulation is enacted without appropriate safeguards, it could result in long-term financial barriers for students and hinder educational opportunities. Conversely, with responsible amendments, the regulation has the potential to improve access to education and promote fairness, accountability, and transparency within financial systems.

Why act now?

The draft regulation was previously withdrawn following more than 20,000 petitions, indicating significant public engagement. A revised version is forthcoming, creating an opportunity to influence its direction. Timely action could lead to the creation of a policy that supports educational access and equity.

We, the students of South Africa, recommend the following for the next draft:

Student Debt Exemption:

Classify tuition and administrative arrears as consumer credit only when they arise from registered, compliant credit agreements with informed consent.

No Direct Reporting by Institutions:

 Institutions should not report student arrears to credit bureaus unless they are designated as registered credit providers.

Informed Consent & Prior Notice:

Students should receive explicit written notice before any adverse reporting; consent should be revocable and adequately documented.

Dispute Resolution & Protections:

Reporting should be suspended automatically during disputes, and students should have access to rights for correction at no cost.

Income-Contingent Repayment:

The regulation should incorporate provisions for flexible, income-based repayment options, hardship relief, and access to debt counselling.

Protection Against Discrimination:

Ensure that student debt reporting does not disproportionately limit individuals’ access to services, employment, or financial opportunities.

Transparency & Public Consultation: 

Drafts should be published alongside Regulatory Impact Assessments, allowing for a minimum of 30 days of public comment.

Monitoring, Reporting & Review:

Annual reports on student debt reporting should be prepared for Parliament, and a formal review should occur within 24 months of implementation.

Enforcement & Sanctions:

 Establish penalties for violations, and ensure affected students have a clear process for remedy and correction.

Call to Action

We, the students of South Africa, urge DTIC, NCR, and Parliament to adopt these principles in the upcoming draft. Students, youth, and concerned citizens are encouraged to participate by signing the petition at We, The Students of South Africa or the official Africa Ad Astra Google Form. Public advocacy is essential at this juncture.