VC Desk: UCT plans to deal with historic debt

Dear Students

UCT plans to deal with historic debt

UCT has developed a new approach to assist students who have incurred fee debt in 2013, 2014 or 2015 that will enable them to proceed with their studies despite the outstanding debt against their name. The result of this approach mostly funded from the allocations made available by government through NSFAS, but also from UCT's own sources and donors, means that no NSFAS eligible student should be prevented from continuing with their studies or from graduating due to unaffordability, provided they are academically eligible.

The current UCT rule does not allow students with outstanding fees, (i.e fee debt) to register for the next academic year or to graduate (if they had completed their final year of study). However, UCT together with DHET has made provisions for the 2016 academic year to assist NSFAS eligible to settle their debt in order to register.

There are several groupings of students that will benefit from the new approach and some critical additional information follows below. Please read all six points, taking note of the various applicable deadlines:

1. UCT financial aid recipients in 2015: Converting fee debt to loans
   
   The government decided in late 2015 that it will in provide additional funding to NSFAS so that all students who are academically and financially eligible (in terms of NSFAS rules) may convert their 2015 fee debts into NSFAS loans. After the final results for 2015 are released on 29 January 2016, those who meet the criteria will receive an email from the Student Financial Aid Office informing them when to come to the office in the Kramer Building to sign a loan agreement for the outstanding fees. Once the loan has been signed, the fee block will be removed and the student will be able to register.
   
   Action by students: If you have not received an email with an appointment time to meet with a financial aid officer by 1 February 2016, please approach the Financial Aid office in the Kramer Law Building.
    
2. UCT financial aid recipients in 2013 and 2014 who were excluded due to unpaid debt:
   
   Students who were on financial aid in 2013 or 2014 and had passed at least 50% of their courses, but who left the university after 2013 or 2014 because they owed the university money and therefore could not register in the following year will now be eligible to have their debt converted into a NSFAS loan and will be able to register to study in future.
   
   Action by students: Contact the Financial Aid Office via FinAidAppeals@uct.ac.za and mark the subject heading as 2013 or 2014 Fee Debt followed by your student number.
    
3. UCT Gap funding students 2015:
   
   Gap funding students (also called the missing middle) are those who (in accordance with NSFAS rules) have previously not been eligible for NSFAS funding at all – because their family income is above a certain threshold. At UCT we have historically offered financial assistance to these students too, up to a household income of R550,000. This money comes from UCT's own budget and from money we raised from donors. Our decision now is that if students in this group have outstanding debts to the university that they cannot afford, they may appeal for additional assistance. If successful, they will be notified of the level of assistance granted as determined by the Appeals Committee.
   
   Together with this letter of appeal, the student must submit any relevant documentation in support of the appeal. In considering these appeals the committee will look at factors like size of the debt, payment effort, academic performance, available funds, family circumstances, etc. Once the Appeals Committee has made a decision on how much the student will receive towards the debt, this will be communicated to the student. The sooner they appeal for assistance, the sooner we can respond giving them clarity on whether they will be able to register or how much they may still need to raise based on our assessment of what they can afford.
   
   Together with this letter of appeal, the student must submit any relevant documentation in support of the appeal. In considering these appeals the committee will look at factors like size of the debt, payment effort, academic performance, available funds, family circumstances, etc. Once the Appeals Committee has made a decision on how much the student will receive towards the debt, this will be communicated to the student. The sooner they appeal for assistance, the sooner we can respond giving them clarity on whether they will be able to register or how much they may still need to raise based on our assessment of what they can afford.
   
   Action by students: Write to the Appeals Committee via FinAidAppeals@uct.ac.za by latest 5 February 2016. Mark the subject heading as GAP Debt Appeal, followed by your student number.
    
4. Previously funded NSFAS students who were not on Financial Aid in 2015 who have outstanding debt: Students who fall into this category should write to the Appeals Committee detailing their case.
   
   Action by students: Submit an appeal to FinAidAppeals@uct.ac.za
   
   All appeals must be submitted before 5 February 2016.
    
5. Reservations in residence for students with outstanding debt:
   
   In the past, students who had been offered places in residence for 2016 had to clear their debt from 2015 by 21 January. Failure to do so would mean their reserved places are reallocated to other applicants on the waiting list.
   
   The arrangement for 2016 is that students, who were on financial aid in 2015 and have been offered a place in residence for 2016, will not lose their reservation of a residence place. This is on condition that they have completed their loan agreement forms to settle their fee debt (see under point 1).
   
   Gap students in 2015 who have outstanding debt will not be able to move into residence until the debt has been paid (if necessary with the assistance described in point 3).
    
6. Postgraduate, SADC and International students:
   
   Please note that financial assistance to postgraduate students are administered via the postgraduate funding office at UCT and are not affected by this new approach.
   
   Please also note that financial aid is not available to international students, including SADC students. All NSFAS and UCT financial aid is geared towards supporting South African students.
    

UCT is very pleased that we are able to work with government and donors in addressing this issue and trust that many students will benefit from this plan

Sincerely

Dr Max Price
Vice-Chancellor