Nkosinathi Sishi, the Director-General of the department, announced the cancellation of registrations on Friday, March 22, 2024. Sishi highlighted the institutions' non-compliance with the law, citing their failure to submit annual financial statements for 2021 and 2022.

The repercussions of this move are significant, with thousands of students now facing uncertainty about their educational future. With the institutes slated for closure by the end of 2024, affected students will need to seek alternative places to pursue their studies from next year onwards.

Here are some common consequences of deregistration:

1. Closure: The institution is required to cease its operations by a specified date. This closure often entails discontinuing all academic programs and services offered by the institution.

2. Loss of Accreditation: Deregistration often results in the loss of accreditation for the institution's academic programs. This means that any qualifications or degrees awarded by the institution may no longer be recognised or accepted.

3. Student Transfers: Students enrolled at the deregistered institution may need to transfer to other accredited institutions to continue their studies. The deregistered institution is typically responsible for facilitating this transfer process and ensuring minimal disruption to students' academic pursuits.

4. Financial and Legal Ramifications: Deregistration may lead to financial and legal consequences for the institution, including potential fines or legal action for non-compliance with regulatory requirements.

5. Recovery or Closure: In some cases, deregistered institutions may have the opportunity to rectify the issues that led to deregistration and seek re-registration in the future. However, if the issues cannot be resolved, the institution may face permanent closure.

Overall, deregistration is a serious consequence for institutions of higher education in South Africa, and it can have far-reaching implications for students, staff, and the institution itself.