It is quite astonishing how much universities in South Africa make from application fees which are not refundable so this is genuine income. I dare say tis is not just South Africa, but a world wide trend with every single university taking advantage of increased applications.
All I can say is this is such a beautiful business model you have to applaud them for being able to get away with this. A university being able to make R150 million or $7.5 million annually for rejecting applications due to the limited numbers besides what they earn via government support for every graduate and the obvious student fees.
Universities Are Big Business
I just checked the University of Cape Town who last year had 94 000 applications for 4 500 spaces at R300 each which is another R27 million made from nowhere. If they need more money then I expect the application fees will rise allowing for the money printer to print even more profits.
In 2024 the universities in the UK received a combined 752K applications for 565K allocated spaces so even at an average of £100 application fees that is still £20 million, but nowhere near the numbers each University is printing in SA. I still a bit gob smacked at the University of Johannesburg making in excess of R150 million from applications alone.
Like many tings in SA the prices have risen accordingly with overseas costs and expect this R200 or R300 application fee will be R500 next year which is still reasonable being $25 and way less than what they could be asking. The number of applicants is going to rise annually especially when you consider so many applicants are excluded due to being of the wrong skin color and not on academic results.
My ice had to do her medical degree via another route qualifying as a chiropractor first before then studying medicine coming in as a 3rd year medical student and then getting her doctors degree. She had distinctions, but was white and was rejected due to the numbers of how they break down the races on applications which is absurd.
I do think with how much is being made by all universities around the world on applications they could afford to reduce the course fees being charged which would result in less student debt. Still it is a very good business model knowing you will make x amount each year before you have even opened the school year. The universities that everyone wants to join as their first choice are the ones who are making all the money through their reputation and why they are first choice for so many.