GRAHAMSTOWN - RHODES AVOIDS FINANCIAL CRISIS AFTER STUDENTS PAY R12 MILLION IN FEES

Hundreds of Rhodes University students have paid about R12-million in fees since it was made public last week that the university was in dire financial straits.

The university announced a few weeks ago, that those who owed more than 50% of their fees would not get their results.

The 1616 students – some 20% of the student body – owed the university R86.6-million for 2016.

The university said in response to questions from the Daily Dispatch that it could grind to a halt if fees were not paid. Its basic costs amounted to about R17-million a month and without that, it could not pay staff salaries, purchase food to cook in the dining halls or pay Makana Municipality for water or electricity.

But with at least some money streaming in, things seem to be looking slightly rosier for the university.

The university thanked students, parents and other funders on social media for responding to its call to honour payment plan arrangements made at the end of 2015.

Rhodes cash flow was significantly impacted when it last year agreed to easier payment schemes for students in the face of #feesmustfall protests. This included a zero percent fee increase and reducing the minimum initial payment of 50% to 10%.

But the university now says that of the 1616 students whose June exam results were withheld, 818 students had already made contact with its fees office to settle outstanding fees, provide a new payment plan, or update their existing payment plan.

All these students’ examination results had now been released.

“The university appeals to the remaining 798 students to make contact with the fees office as soon as possible to discuss a way forward with the payment of outstanding fees.” It said it had received R12-million over the past eight days alone.

“Whilst this is still R5.3-million short of the monthly student fee payment target of R17.4-million, this inflow of fee payments is both welcome and significant.”

The university urged people to adhere to the payment plans made with the university for the rest of the year.

There was outrage on social media when the university said it would withhold results from those who owed fees.

Student organisation, Rhodes Asinamali, labelled the university’s actions as malicious and anti-poor. It has called on students to mobilise against the university from today when the academic term begins.

VIA - dispatchlive.co.za