The African National Congress Youth League (ANCYL) on Wednesday urged the Department of Trade, Industry and Competition (dtic) to withdraw its proposals to amend the National Credit Act, calling on government to rather pursue policies that expand access, write off historic student debt, and ensure financial inclusion.

The ANCYL called the proposal anti-poor and anti-youth, and argued that it would make the chance of falling into the debt trap for young people more likely, particularly for those from working-class and black communities.

Last month, the dtic called for input on the proposed amendments to the National Credit Regulations, which it said aimed to strengthen the way credit providers, credit bureaus, and consumers interact in the financial environment.

The amendments will see the credit bureaud receive consumer credit information from education institutions, meaning educational debt will appear on credit reports.

ANCYL secretary general Mntuwoxolo Ngudle said the proposal would effectively lock out graduates and students from accessing opportunities in key sectors, such as the financial services industry, where blacklisting by credit bureaus is a barrier to employment.

He said it would also undermine government's commitment to skills development, youth empowerment and inclusive economic participation.

“Young people should not be criminalised or penalised for pursuing education, which is a constitutional right and a cornerstone of national development,” he stated.

The Youth League said it will mobilise against any policy that criminalised access to education or entrenched structural exclusion.

Ngudle highlighted that listing student debt with credit bureaus would only deepen generational poverty and block the very transformation agenda that the democratic State is meant to champion.

The Youth League further demanded that youth formations, student formations and broader civil society be consulted on any changes to the credit regime that affects their future.