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Deputy Minister Confirms No Regulation Blacklisting Students in South Africa
South Africa’s students can breathe easier after Deputy Minister in the Presidency, Nonceba Mhlauli, moved to calm fears over draft amendments to the National Credit Act. Rumours had spread that the new regulations would allow students with unpaid education loans to be blacklisted by credit bureaus.
Clearing the confusion
Speaking on Thursday, Mhlauli stressed that there is no new regulation that blacklists students. She explained that the changes currently out for public consultation are focused on supporting micro, medium, and macro enterprises (MMEs and MMMEs), not on penalising young people studying at universities or colleges.
“The idea that this is a new provision against students is misleading,” she explained, noting that educational institutions have actually been included under the Act since it was first passed in 2006.
What the law already says
The deputy minister highlighted that higher education institutions have always fallen under the scope of the National Credit Act. What some are portraying as a fresh move, she said, has in fact been in law for nearly two decades.
She also reminded the public that in the 19 years since the Act was introduced, there has not been a single reported case of students being unfairly blacklisted for unpaid study debt.
Where the debate should be
For Mhlauli, the real question is not about the draft amendments, but whether educational institutions should appear on the list of entities that creditors can approach in the first place. She suggested that parliament may need to consider removing them altogether to ensure that young people are fully protected under the law.
“We should be asking if higher education institutions should even be listed at all,” she said, signalling that the debate should shift toward ensuring long-term legal protection rather than fuelling panic about new restrictions.
Why it matters
South Africa’s youth already face the weight of student debt, limited job opportunities, and rising living costs. Public reaction to the draft amendments shows how sensitive this issue is, with many fearing another barrier to entering the job market. Mhlauli’s clarification provides short-term relief, but the broader conversation on how to protect students financially is likely to continue.
Also read: Nasi Ispani Relaunch: 45,000 Jobs for Gauteng Youth, Says Lesufi
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Source: The Citizen
Featured Image: X (formerly known Twitter)/@NoncebaMhlauli
