Question NW295 to the Minister of Higher Education, Science and Innovation
28 February 2023 - NW295
Zondo, Mr S S to ask the Minister of Higher Education, Science and Innovation
With reference to the continuously ballooning amount of historical debt in institutions of higher learning, (a) how far is the discussion with private banks about the possibility of a loan scheme which would be supported by the Government to guarantee student funding for their studies and (b) what are the relevant details and preempted nature of such agreements?
Reply:
a) The Department of Higher Education and Training has embarked on further consultations with the banking sector as well as the Banking Association of South Africa (BASA) to explore options for a credit guarantee model before an application for a credit guarantee can be submitted to National Treasury by the Minister of Higher Education, Science and Innovation.
b) The first engagement took place on 21 February 2023 with officials from BASA and Nedbank outlining the data requirements that will inform the models for credit risk; interest rate models; government liability; payment terms etc, as required and will be followed with further bi-lateral engagements with the remaining banks.
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RECOMMENDATION
It is recommended that the Director-General sign Parliamentary Question 295.
DR NKOSINATHI SISHI
DIRECTOR–GENERAL: HIGHER EDUCATION AND TRAINING
DATE:
PARLIAMENTARY REPLY 295 IS APPROVED / NOT APPROVED / AMENDED.
COMMENT/S
DR BE NZIMANDE, MP
MINISTER OF HIGHER EDUCATION, SCIENCE AND INNOVATION
DATE: