South Africa's student finance administrators are bracing themselves for the impact of the Aids epidemic on the country's loans scheme.
One in four undergraduate students at South African universities and one in five technikon students is HIV-positive, according to a report commissioned by the department of education. One in eight postgraduate students is also infected.
Apart from the human tragedy, HIV-Aids among students could lead to failure to repay loans - a scenario that worries Roy Jackson, head of the National Student Financial Aid Scheme, which during the current financial year will distribute R550 million (£50 million) to 80,000 needy students.
"The pandemic is scary. We need to build a new financial model that takes into account losses that will occur, but the truth is that South Africa will lose valuable human resources and HIV-Aids will affect loan recovery," Mr Jackson said.
The agency is, however, opposed to screening students and assisting only those who are HIV-negative. "That would be against the spirit of what we are trying to do," Mr Jackson added.
The report by the international consultancy Abt Associates warns that HIV-Aids could undermine education quality and skills development, and lead to declining enrolments.
Saul Johnson of Abt said it would pose a "direct challenge to the education system's mission and ability to function effectively". He added that it called for "a total overhaul and re-planning" of the system, a review of teacher training and the recall of retired teachers to stand in for those who die or are absent as a result of HIV-related illnesses.
The Abt report predicted that Aids would become the leading cause of death among schoolteachers this year.
At the end of last year, one in five teachers in KwaZulu-Natal and up to 16 per cent of teachers in eight other provinces were HIV-positive.
South African universities and technikons are already dealing with HIV-Aids on a day-to-day basis, with prevention campaigns under way at most institutions, schemes in place to support infected students and HIV-Aids issues being introduced to curricula.
Responding to the Abt report, South African Universities Vice-Chancellors' Association chief executive Piyushi Kotecha described HIV-Aids as a critical strategic issue for education - especially higher education - in the coming five years.
"New research on HIV-Aids is important in combating the pandemic, but it is essential that the findings of the research are handled sensibly," she said.
Sauvca has been working with the education authorities and experts on a plan to ensure universities play an effective role in combating HIV-Aids.
A Sauvca survey revealed pockets of expertise but uneven responses across the system in terms of policy, management and programmes.
South Africa's 21 universities have endorsed the development of a national plan against HIV-Aids, which will include encouraging existing initiatives and more resources for Aids-related work.