The student loan department needed transparency, consistency and an ethical base from which to operate. Students who were ill equipped for tertiary studies were given loans and the fall out and failure rate was huge. There were no consequences for poor performance and loans were renewed automatically. Students were studying arbitrary courses at private institutions and market unrelated Diplomas at Universities of Technologies which did not lead to jobs. Diplomas as opposed to Degrees were the study area of choice as these were perceived as being much easier. Students struggled to find employment even if they did complete a course as they had performed so poorly and there was no demand for the particular area of focus.Consequently loans were not being repaid and the RBN was owed millions of Rands.
If the student loans can be recovered and a culture of repayment is perpetuated, the loan scheme will be sustainable for the RBN. The RBN will save millions of Rands which have hitherto been squandered. By choosing market related academically rigorous Degrees, graduates will compete with the best for jobs and also be employed in RBH partnership companies. Students will pass courses within the expected duration and there will be consequences for poor performance. Parents will know that their children are in safe, clean and secure accommodation and are being supported holistically by the RBI.