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Theses and dissertations (Management Sciences)

Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/14

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    The effects of consumer protection legislation on challenges pertaining to student loan debt : a case study of the Durban University of Technology
    (2023-07) Govender, Preleen; Reddy, Karunanidhi
    Millions of South Africans endured numerous injustices throughout apartheid, with education being one. Since the beginning of the 21st century, the value of Higher Education (HE) has grown, and it is believed that giving more people access to it will benefit the economy of the country as well as their social status and quality of life. This has compelled numerous governments to create student loan schemes in order to assist deserving and needy people and increase their access to HE. HE may be the only option to escape poverty in South Africa yet, in order to continue their study; students require money. Some students must rely on parental or family support, part time employment, savings, or bank loans to pay for their studies. One type of financial aid intended to assist students in paying their tuition and other expenses, is student loans. Student loans are another means to pay for university education. There may be severe repercussions for the student who is unable to make prompt payments, which may take many different forms. Furthermore, when signing student loan contracts, through banks, government-funded schemes, such as the National Student Financial Aid Scheme (NSFAS), private lenders, University Financial Aid, Bursaries and Scholarships, students face various difficulties. The aim of the study was to investigate the effects of consumer protection legislation on the challenges pertaining to student loan debt in the South African HE sector. The objectives of the study were to explore HE student challenges in respect of student loan contracts and the resultant student loan debt; the study analysed the implications of selected consumer legislation (including the National Credit Act 34 of 2005 and the Consumer Protection Act 68 of 2008) on such challenges faced by HE students, furthermore, the study explored measures to protect students and make future improvements in the broader South African student loan scheme in HE. The target population for this study comprised of full-time students from all of the Durban University of Technology campuses, viz. ML Sultan, Steve Biko, Ritson, Brickfield, City campus and the Pietermaritzburg campus. A case study research design was employed for the current study. This study adopted non-probability sampling techniques, i.e. a judgemental or purposive sampling method and a convenience sampling method. A questionnaire, which is mainly quantitative in nature, was utilised for this study. The questionnaire was developed to achieve the study's objectives. The study focused on collecting and analysing, quantitative data as a method and is being presented and analysed using quantitative techniques. Cronbach’s Alpha was used to determine reliability of the questionnaire. The Statistical Package for the Social Science (SPSS) package version 27.0 was used to analyse the quantitative data. Data was obtained from 306 respondents and analysed and interpreted using descriptive and inferential statistics. The results from the study were presented using graphs and tables. This study will be beneficial to students as well as HEIs as it highlights the challenges faced by students and possible measures to protect students and make improvements in the broader South African students’ loan scheme. The findings from the study revealed that the respondents were unaware of the consequences to unpaid student loan debt, including the fact that they may not be able to complete their studies; that if their studies have been completed, the university will withhold the certification, and that not paying their student loan could prevent them from graduating. Furthermore, the respondents experienced challenges such as the contracts not being in a plain and understandable language, amongst many others. Based on the findings, recommendations are made on the measures that can be implemented to protect students and to make future improvements in the broader South African student’s loan scheme in HE