Revenue service to help track students owing billions

Tax authorities are helping to track down former students who owe billions on their National Student Financial Aid Scheme loans, writes Louise Flanagan for Cape Times.

This means that once former students are employed and start paying tax, it’s harder for them to dodge repaying loans. On 8 July the South African Revenue Service issued a notice allowing its officials to hand over certain taxpayer information to the National Student Financial Aid Scheme or NSFAS.

The new rule is effective immediately and is expected to provide much-needed help to the NSFAS, which has been struggling to collect from students once they have graduated or moved on. The students owe billions and while last year’s debts haven’t yet been totalled, “at the end of March 2015 the scheme recorded a loan book with a cumulative nominal value of R21.3 billion (US$1.5 billion) and a fair value of R6.1 billion”, said NSFAS spokesperson Kagisho Mamabolo.
Full report on the IOL site