The fees commission report is not saying anything about the students whose parents are already enjoying access to wealth, says Dr Felicity Coughlan, director of the Independent Institute of Education.
The report recommends that students studying at tertiary education institutions - regardless of their family background - be funded through a 'cost-sharing model of government guaranteed income-contingent loans' from commercial banks.
She says it is concerning that the income contingency is only on the graduates, which means for the longest time there will be no money flowing in for other students, yet people who can afford to pay for their own fees will be covered by the system.
I am not really sure if this is workable or correct...— Dr Felicity Coughlan, Director of The Independent Institute of Education
For the first time ever I am more grateful to be in higher education than in banking industry.— Dr Felicity Coughlan, Director of The Independent Institute of Education
Managing Director at Banking Association of South Africa, Cas Coovadia says as the banking industry they are prepared to engage on the report and play their role where needs be.
However, he says it should be fully noted that banks are a business and "every time the president sticks a needle into the banks, he sticks a needle into the economy of South Africa".
We are absolutely ready to see what role we can play but at the end of the day we can't manage this in a way that we need to lend money with the possibility of the money not coming back.— Cas Coovadia, Managing Director at Banking Association of South Africa
The report talks of government guaranteed loans and we need to understand what that means.— Cas Coovadia, Managing Director at Banking Association of South Africa
Coovadia says we need to put our heads together to find a solution to the fees problem but not in a way that looks good now and problematic in the long run.
Let's not run away for the fact that we have problems in this country and we need to look at this and find a sustainable and an equitable solution.— Cas Coovadia, Managing Director at Banking Association of South Africa
As the banks we are prepared to play a role but we dealing with people's money, we are a business and we do need to get our money back and all those things need to be taken into consideration.— Cas Coovadia, Managing Director at Banking Association of South Africa
To hear more reaction on the Fees commission Report, listen below:
This article first appeared on CapeTalk : Banks can't lend money without expecting it back: Fees Report