Minister of Higher Education, Science and Innovation Blade Nzimande revealed that funding for the National Student Financial Aid Scheme (Nsfas) has increased five-fold over the past six years.
In 2013, Nsfas received R5,9 billion to fund students. This amount has increased to R49 billion to fund students in the 2022 academic year. The scheme was however converted from a loan into a bursary in 2018.
Nzimande praised the student funding model currently being used in South Africa. They said the funding models used in the country are among the most advanced and generous in the developing world.
Despite the praise of the current funding model by Nzimande, the minister appointed a Ministerial Task Team (MTT) in 2021 to construct proposals to create a more sustainable model for student financial aid.
This includes finding solutions to fund the missing middle and outlining a number of loan and bursary options already available to students.
The MTT made eighteen recommendations which should be considered to create a more sustainable student financial aid model in the country. They indicated that a ten-year plan must be created, drawing on a diversity of funding sources, and integrating work across government to create a comprehensive and more sustainable funding model.
Recommendations made by the MTT include:
- Adjusting household income threshold for Nsfas based on inflation
- Providing differentiated support to students from different socio-economic backgrounds
- Capping the allowance levels available for student accommodation based on varying conditions and availability across different location
- Ensuring that academic performance criteria are strongly built into the student financial aid model
- Creation of loan funding options for missing middle students
- Investigate the possibility of funding children of public servants from the Public Investment Corporation (PIC)
- Investigate opportunities of funding second qualifications or postgraduate studies
- Development of a database of student funding opportunities in the post-school education and training system
- Strengthening controls to ensure only deserving students benefit from student financial while preventing corruption
- Adjusting the way TVET college students are funded
They added that Nsfas must continue supporting students from poor and working-class backgrounds while the ten-year plan is developed.
