The ANCYL argued that young people from the working-class and black communities already face the heaviest debt burden.
The African National Congress Youth League (ANCYL) has rejected government’s plan to allow student debt to be listed with credit bureaus.
It warned that the move would deepen poverty and shut young people out of economic opportunities.
The Department of Trade, Industry and Competition (DTIC) recently gazetted draft amendments which would affect the National Credit Act by including a provision that would permit the listing of outstanding student loans and education-related debt with credit bureaus.
‘Reckless suggestion’
In a strongly worded statement on Wednesday, ANCYL said it “notes the proposal with deep concern”, describing it as “the reckless suggestion that student debt be listed with credit bureaus”.
“This anti-poor and anti-youth proposal deserves the contempt it gets,” stated the organisation.
“Instead of punishing the youth for accessing education, government must be pursuing policies that expand access, write off historic student debt, and ensure financial inclusion.”
The ANCYL argued that young people from working-class and black communities already face the heaviest debt burden.
Blacklisting them, the league said, would “tighten the debt trap” and “effectively lock out graduates and students from accessing opportunities in key sectors, including the financial services industry, where blacklisting is a barrier to employment”.
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Undermining empowerment
The league also warned that the proposed amendments risk undermining government’s own commitments.
“Listing student debt with credit bureaus will only deepen generational poverty and block the very transformation agenda that the democratic state is meant to champion,” the statement read.
The organisation called the proposal a direct contradiction of policies aimed at skills development, youth empowerment and inclusive economic growth.
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Demand for consultation
The ANCYL has demanded that the DTIC withdraw the proposal “with immediate effect” and consult widely with young people, students and civil society before making changes to the credit regime.
“Young people should not be criminalised or penalised for pursuing education, which is a constitutional right and a cornerstone of national development,” the league said.
The Youth League further added that it “will not stand by as the aspirations of young people are mortgaged away” and pledged to mobilise against any policy that “criminalises access to education or entrenches structural exclusion.”
The DTIC’s draft regulations, published in mid-August, are open for public comment before any final amendments to the National Credit Act are made.
The ANCYL said it plans to campaign against the measure, arguing that the state should instead prioritise debt relief and stronger financial support for students.
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