Task Team on NSFAS should consider DA funding solution
26 March 2021
The DA will request to present our higher education student funding model to the Ministerial Task Team (MTT) on NSFAS business processes. And that our model be incorporate into their long overdue report on the entity.
The MTT was established in June 2020 to review, among other issues, NSFAS’ funding model.
In a recent meeting of the Portfolio Committee on Higher Education, Minister Blade Nzimande mentioned the need to reevaluate and review the Heher Commission report into higher education. The Minister viewed this report as a potential alternative whereby its recommendations must be considered in order to ensure the sustainability of NSFAS. This means that a consideration regarding a loan/bursary scheme feature for NSFAS is needed to ensure its viability.
We welcome this new approach by the Minister as it is in line with the DA’s tiered system of loans/grants:
|
Annual household income |
Loan |
|
R0 – R350 000 |
Full cost of study |
|
R350 000 – R500 000 |
66% of the full cost of study |
|
R500 000 – R650 000 |
33% of the full cost of study |
Repayment of the loans in our scheme will only be required when the recipient obtains a job that pays them well enough to ensure that repayments are affordable. Differential repayment conditions will be introduced, some of which will take into account the number of dependents a particular recipient supports.
The funding scheme will emphasise quality. It will operate to maximise the number of high-quality graduates it supports. We believe output rather than input should gradually become the focus of student funding.
It is important that funding of NSFAS does not end up defunding higher education in the ANC’s quest to further pursue unstainable fee free higher education.
Issued by Chantel King, DA Shadow Minister for Higher Education, Science & Technology, 26 March 2021
