NSFAS shortfall quantified at R4.5bn
Task team reveals how it will overcome funding challenges
WEDNESDAY DECEMBER 16
T2015 HE NATIONAL Student Financial Aid Scheme (NSFAS) will experience a R4.5 billion shortfall, the presidential task team set up to probe the funding challenges at the country’s universities, has found.
Student fees came into the spotlight earlier this year when students from across the country protested after a proposed tertiary fee hike.
The protests lasted nearly a month and peaked when students stormed the parliamentary precinct, calling for Minister of Higher Education and Training Blade Nzimande to address them. The students were calling for a zero-percent increase after a possible 10 percent increase was announced.
The #FeesMustFall trended worldwide and universities were disrupted with some still reeling from the protests, as exams scheduled for November are now set to be written early next year.
In a statement released yesterday, President Jacob Zuma’s office said the task team had handed him its report which contains several recommendations on how to fund the shortfall.
The team was appointed in October and was tasked to report on a number of things, including possible solutions to the immediate funding challenges at universities, looking at the implementation of the agreement on the zero-percent fee increment for the 2016 academic year, and also needed to advise on a short-term plan to mitigate against possible student protests and unrest at the start of the 2016 academic year.
The recommendations by the task team included that upfront fee and registration payments should be implemented across the system for those who can afford to pay.
Students who meet the NSFAS means test should not be required to pay upfront.
While the task team confirmed the R2.3bn shortfall in university funding for 2016 would be sourced from the government and academic institutions, the NSFAS shortfall would be funded through offering loans to students and reprioritisation of funds from the fiscus.
“The NSFAS shortfall has been quantified at R4.582bn.
“The report recommends that R2.543bn of this amount must be made available from the fiscus, in the form of loans to provide short-term debt relief to 71 753 students who were funded inadequately or were unable to access financial aid over the 2013 to 2015 academic years.
“The further R2.039bn is required in the 2016/17 financial year to ensure that currently unfunded continuing students receive NSFAS support in the 2016 academic year,” the Presidency said.
Additional recommendations included that the NSFAS “improve its administrative systems”, that “rules pertaining to academic eligibility of students for NSFAS should be applied consistently” and that a new financing model be developed.
This financing model, which would include banks making available loans at favourable rates to students without surety, would have to be developed next year for 2017, the Presidency said.
“Investment should be solicited from the full range of stakeholders to enable implementation on the scale required.”
The Presidency thanked the task team for its work, and said an announcement of the commission that will look at the introduction of free higher education to improve access for the children of the poor and the working class would be announced soon.