NSFAS tweaks its funding approach

THE National Student Financial Aid Scheme (NSFAS) will soon roll out the student-centred model at universities and technical and vocational education and training (TVET) colleges.

The new model would allow NSFAS to establish a direct relationship with its students from the time they entered higher education until post-graduation, NSFAS chairperson Sizwe Nxasana said yesterday.

He was briefing the media in Pretoria on the progress of applications and funding of university and TVET college students.

“Students will apply directly to us and we will notify them on whether their application was successful or not.

“One of the benefits is that if they do receive funding, the allowance goes directly to students and they manage it themselves‚“he said.

The current model involves students applying through their university, then NSFAS funding them through the university instead of directly.

Nxasana said there would be major benefits for the new model.

“We know that there have been a few issues around the payment of allowances by TVET colleges, so in future it is going to change.

“We are still paying allowances through the TVET colleges, but in future (we) will be paying allowances straight to the students so that they can control their own budget.

Nxasana said they had encountered cases where some universities spread smaller awards to a larger number of students, a practice called “top slicing”.

The cost to family and state of higher education had escalated over the years.

The cost of higher education contributed to its increasing inaccessibility.

NSFAS had found that despite increases in allocations, available resources were inadequate to cover all financially needy and academically successful students at varsities.

“One of the main problems is that there is an administrative lacuna in some universities in that they enrol more students who are NSFAS applicants than (the) allocated funds,” said Nxasana.

Those institutions ended up “top-slicing”, he said, which meant that NSFAS beneficiaries would share the amount among themselves and not cover all their needs. Costs included tuition fees, accommodation fees, books and meals.

Nxasana cited cases of institutions enrolling 5 000 needy students instead of the 3000 who could receive 100% NSFAS allocation.

“To cover them all, they will spread this allocation evenly.

“This means that each may receive a 40% loan and therefore owe the university the 60% outstanding, which comes as debt,” he added.

“This becomes a problem because everyone comes back to us when in fact a university failed to administer this enrolment of NSFAS relying students.”

The Department of Higher Education allocated R15 billion this year for NSFAS.

It would fund well over 400 000 students on this budget.

Nxasana said that 309 788 applications for university and TVET college students had already been approved.

“Given the completion of some academic year examinations in January 2017 at certain universities‚ there are also more qualifying students whose results are being evaluated which will increase the numbers of funded students.

“We plan to add more than 100000 students to the 309788 already funded.”

Of the total number of applications received, 53 043 were unsuccessful while 3760 were being reviewed.