National Treasury on Tuesday urged employed beneficiaries of the National Student Financial Aid Scheme (NSFAS) to start repaying their loans in a bid to finance the shortfall for tertiary education created by next year’s zero-fee increment.

This comes after Higher Education and Training Minister Blade Nzimande announced on Monday that tertiary education institutions were permitted to individually determine the level of 2017 fees increase that their institutions require.

Nzimande, however, said government recommends that the fees increments should not go above eight percent.

Treasury said it was important to note that, a policy decision had been made to subsidise the fees of those students from poor backgrounds and the “missing middle” students (those who are classified as “too rich” to qualify for government support, but “too poor” to afford tuition fees).

“National Treasury has been exploring different mechanisms of finding the money to pay for the subsidy. In the main, the department is embarking on a prioritising drive and working with various departments and agencies to address the shortfall,” Treasury said in a statement.

The vice-chancellor of the University of Fort Hare in the Eastern Cape, Mvuyo Tom, on Tuesday announced that there would be no fee increases at the university next year.

Treasury admitted that this was an extremely challenging situation in the present constrained fiscal environment.

“It is important therefore that, those who can afford to pay do so to enable the state to support the ever increasing numbers of those who deserve support and cannot afford,” Treasury said.

“National Treasury also supports the call encouraging all NSFAS beneficiaries who are employed to start repaying their loans. This is part of each citizenry responsibility to play a part in helping other students who are in need of financial aid.

“National Treasury will continue to work with the Department of Higher Education and Training on the fees matter and will announce the results of the process during the Medium Term Budget Policy Statement on October 26.”

Last year, a number of university campuses were shut down after the #FeesMustFall campaign gained momentum and even saw students storm Parliament and the Union Buildings.

This led President Jacob Zuma to announce a zero percent fee hike for the 2016 academic year.