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The state will then purchase these loans (or guarantee them) and SARS will be responsible for collection as if they were any other tax.It is understood that government will therefore also be responsible for the shortfall should students not repay these loans.
"Over 70% of South African households earn below the taxable income.
Application and registration fees would also be scrapped.
Backing the fund As part of ensuring that the contingent loans receive sufficient financial stability, the report proposed a number of ways that these loans could be financially backed.
However, the report cautioned that the state simply does not have the funds for free tertiary education across the board – and that doing so may not actually be in the best interests of South Africa’s higher education sector.
There was room to make Technical Vocational Education and Training (TVET) colleges fee-free, as well as to improve the current funding schemes for poor students in the country.
As students raised their legitimate concerns about inequalities in access and success in higher education‚ it became clear that urgent and decisive government intervention was necessary to find a sustainable solution.