Tau withdraws student debt credit blacklisting plan after outcry

CAPE TOWN — 13 September 2025

Trade Minister Parks Tau has withdrawn draft regulations allowing universities to report students with unpaid fees to credit bureaus. The decision follows over 20,000 public objections to the proposal.

The regulations were published on 13 August 2025. They proposed letting educational institutions act as credit information providers.

Students with unpaid debts could have received negative listings from credit bureaus under the rules. This might have affected their future loan applications.

Minister Tau scrapped the plan after student organisations, civil society groups and professionals objected before the 12 September comment deadline. The Economic Freedom Fighters (EFF) publicly rejected the proposals, describing them as “punitive towards the poor and young people”.

Critics argued the rules would worsen South Africa’s student debt crisis by penalising struggling youth. Universities currently withhold graduation certificates from students owing fees, limiting their job prospects and repayment ability (student groups submission).

The EFF warned that credit bureau listings would trap students in “long-term financial exclusion” while benefiting debt collectors and financial institutions.

“The withdrawal of these regulations is a victory for students and broader society,” the EFF stated. It claims the proposal shows government disregard for youth challenges.