Government says it is discussing student loans with banks

This week the South African Department of Higher Education and Training revealed there have been discussions with private banks regarding the possibility of a loan scheme supported by government guarantees to assist students to fund their studies, writes Unathi Nkanjeni for Times Live.

The department was responding to a written parliamentary Q&A where the Economic Freedom Fighters (EFF) asked whether the private sector, particularly private banks, could be approached to provide loans to ‘missing middle’ students for their studies.

The EFF asked whether there has been a feasibility study on the impact of loans as a method to fund students, and if the loans will create the huge debt traps experienced in other countries. ‘Missing middle’ refers to those students who come from working-class households and do not qualify for the National Student Finance Aid Scheme and cannot afford higher education.
Full report on the Times Live site