The historical inequalities created by the South African apartheid system, left lasting educational and social disparities, that continue to limit access to higher education (HE) for many South Africans. To increase participation, government and financial institutions have introduced student loan schemes to assist with tuition and related costs. However, student loans present significant risks, and rising student loan debt has become an increasing concern within South Africa’s HE sector. Despite this, limited attention has been given to the implications of the National Credit Act 34 of 2005 (NCA) on student borrowers and the protections available to them. This article examines the extent to which the NCA safeguards student consumers through a doctrinal analysis of key provisions, including responsible lending, disclosure obligations, and the prohibition of reckless credit granting. This article assessed the adequacy of the Act in addressing the challenges faced by student borrowers. To support the legal analysis, selected quantitative findings from a broader master’s study were incorporated, demonstrating students’ limited understanding of loan terms, low levels of financial awareness, and the inconsistent implementation of NCA requirements by lenders. The findings revealed that many students enter credit agreements with limited understanding of key contractual terms, repayment obligations, and the legal consequences of default. Although the NCA offers a strong regulatory framework for responsible credit lending, its application within the student loan context remains uneven. This article concluded that targeted reforms are needed to improve consumer protection for financially vulnerable student borrowers and to support equitable access to HE.

Authors:
Preleen Govender, The Durban University of Technology, South Africa
Karunanidhi Reddy, Durban University of Technology, South Africa

About the Presenter(s)
Preleen Govender, a full-time lecturer at Durban University of Technology, is passionate about equality and education. Her general interests include social justice, education and women's empowerment. Her current project focuses on gender equality.

Connect on Linkedin
https://www.linkedin.com/in/preleen-govender-33b473171?

See this presentation on the full schedule – Monday Schedule

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