The Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA) have granted Walter Sisulu University over R16 million in a twinning Memorandum of Agreement (MoU) towards clearing student debt and certification of degrees.
The purpose of the MoA is to create an agreement between merSETA and the Walter Sisulu University to fund the student-debt of six hundred and one (601) learners.
WSU convocation president, Dr Lunga Mantashe, provided a contextual analysis of the “catch 22” challenge the university faces regarding the student “debt trap”.
“I call this the catch 22 situation because the university wants the student to pay what they owe to it. On the other hand, the student wants the certificate so they can go into the job market and secure employment so they can be able to settle their debts to the university. This is where this initiative and others like it that will follow are critical because they seek to help students settle their debts and thereby allowing them to obtain their certificates so they can enter the job market,” said Dr Mantashe.
Universities South Africa (USAf) recently indicated that the total national debt has snowballed to above R16,5 billion causing a serious threat to the sustainability of higher education. At WSU, the ballooning student debt is now at approximately R1,3 billion and with about 34 000 graduates owing the university.
According to WSU records, 72% of the University’s registered students are on the National Student Financial Aid Scheme (NSFAS).
“WSU relies heavily on public funding, which includes block grant, NSFAS and even bursaries. This means the misalignment caused by the difference in financial years between WSU and the funders leaves it unfunded from January until March. The first tranche of funds only comes in in April,” said WSU Chief Financial Officer, Morgan Nhiwatiwa.
WSU is amongst historically disadvantaged universities that were established as non-white universities and were poorly funded compared to the white-only universities.
merSETA and WSU have established a Project Management Committee (“PMC”) whose responsibility shall be to manage the implementation of an operational implementation plan and give direction to the overall objectives set out in this agreement.
The Agreement is a framework agreement designed with the aim of providing collaborative relations between merSETA and WSU and for furthering their mutual interests in education, training, and skills development.
By Sinawo Hermans