Boost for ‘missing middle’

NSFAS: THOSE NOT ELIGIBLE BEFORE CAN NOW GET STUDENT LOANS

R3.8bn earmarked for higher education needs, says minister.

Minister of Higher Education Blade Nzimande has announced the government has set aside R3.8 billion to fund the country’s “missing middle” students – those not covered by the National Student Financial Aid Scheme (Nsfas).

The missing middle students come from households with an income of more than R350 000 and less than R600 000 per annum.

The Nsfas bursary funds students from households with an income of up to R350 000.

Exceptions are made for students with disabilities, whose households earn not more than R650 000, and households which have more than one student at university, whose income is also not more than R650 000.

In 2019 to 2022, Nsfas paid R123 billion to more than 2.9 million beneficiaries.

Briefing the media on the implementation of the first phase of the missing middle student funding model, Nzimande said R3.8 billion had been set apart for the loan scheme for the 2024 academic year.

The amount is expected to fund 47% of the missing middle students, which is about 31 884 of the estimated 68 446 students in this category.

Phase 2 is expected to be implemented from 2025 to 2034, and the government has pledged to increase the funding to R31.6 billion to R42.1 billion over 10 years.

“We are ready to implement the first phase of the model, which will ensure that what we call the ‘missing middle’ students will now be able to access financial support from government in a form of a loan to pursue their studies,” said Nzimande.

“This loan scheme will be

administered by Nsfas, which is required by law to offer and manage student loans.”

Nsfas will look for partners to manage the loan scheme, as required by the law, said Nzimande.

Nsfas terminated the contracts of four direct payment service providers following allegations of conflict of interest in their appointments.

“As an administrator, Nsfas will deliver on frontend services, that is user interface, and where appropriate will partner with public or private financial institutions, as well as universities with experience in running student loan schemes to provide backend support and other services.”

Students who qualify:

Students whose annual household income is R350 000 to R600 000;

Technical and vocational education and training and university (public) students; Undergraduate or postgraduate students;

70% science, technology, engineering and mathematics programmes (which may be adjusted to include commercial programmes which are in demand in the labour market or entrepreneurial programmes); 30% humanities programmes; and Students willing to sign a loan agreement. Students can apply for the loan to continue to be funded, and are expected to get a 60% pass rate, on average.

Those who obtain 70% or above on average and within prescribed time will get a 50% reduction on their loan on request.

They will be supported for tuition, learning material and accommodation.

Nzimande announced the appointment of former vice-chancellor of the Tshwane University of Technology, Prof Lourens van Staden, as acting chair of Nsfas with immediate effect.

Board chair Ernest Khosa has taken a leave of absence amid allegations of corruption against him by the Organisation Undoing Tax Abuse.

Although Khosa has denied the allegations, he has taken a leave of absence until investigations are concluded.

He also raised concerns about threats made against him and his family.

Model will ensure the ‘missing middle’ can get student loans