1 Portfolio Committee on Education National Assembly November By SIPHO M PITYANA Chairperson, NSFAS PRESENTATION TO

2 NSFAS was established in 1999 as a public entity, under the Ministry of Education, by an act of Parliament (Act 56 of 1999) to provide for the granting of loans and bursaries to eligible students at public higher education institutions and for the administration of such loans and bursaries; and to provide for the recovery of loans. NATIONAL STUDENT FINANCIAL AID SCHEME

3 To provide access to higher education for financially needy South Africans who are academically able, in support of the country’s HRD strategy, while making a contribution to the alleviation of poverty. To raise sufficient funding to enable NSFAS to realise its strategic goals and objectives. To confirm a new allocations formula that is in line with the new higher education transformation framework, for the equitable distribution of funds, in allocating funding in a satisfactory manner. To communicate NSFAS effectively with all its audiences, seeking to make NSFAS the funder of choice. NSFAS STRATEGIC GOALS Building a Sustainable Financial Aid Scheme

4 Dear NSFAS This is to say thank you for your financial support, you made my life. Today I am man because of you. I have just paid my last instalment and you can now close my account and open an account for another financially needy student somewhere. Phambili NSFAS pambili !!! Regards, PMN To whom it may concern I would like to say THANKS very much for offering me the opportunity to be who I am today. I would also like to say carry on supporting and helping all the needy South Africans out there. With organisations like you in our access the country will develop faster. Thanks again From TPS WORD OF THANKS FROM PAST RECIPIENTS

5 Building a Sustainable Financial Aid Scheme To provide access to higher education for financially needy South Africans who are academically able, in support of the country’s HRD strategy, while making a contribution to the alleviation of poverty. To raise sufficient funding to enable NSFAS to realise its strategic goals and objectives. To confirm a new allocations formula that is in line with the new higher education transformation framework, for the equitable distribution of funds, in allocating funding in a satisfactory manner. To communicate NSFAS effectively with all its audiences, seeking to make NSFAS the funder of choice. NSFAS STRATEGIC GOALS

6 NUMBER OF AWARDS GRANTED Building a Sustainable Financial Aid Scheme

7 RACIAL BREAKDOWN Building a Sustainable Financial Aid Scheme

8 AWARDS TOTALS Building a Sustainable Financial Aid Scheme

9 OPERATING COSTS AS A PERCENTAGE OF TOTAL AWARDS: % % % % % % % % % % %

10 AVERAGE AWARD SIZE : Building a Sustainable Financial Aid Scheme

11 SUCCESS RATES Building a Sustainable Financial Aid Scheme Courses Passed % % % % % % % % % % %

12 EXPANDING THE SCHEME … NEW FROM 2007 Bursaries available over the next 3 years: Funza Lushaka R120mR180mR400m (Teachers) FET collegesR100m R200mR300m Social WorkR 50mR100mR150m Building a Sustainable Financial Aid Scheme

13 Building a Sustainable Financial Aid Scheme EXPANDING THE SCHEME … Public FET College Bursaries 50 public FET colleges located in the 9 provinces To date, of the R100m available for 2007: R66 million has been paid to FET colleges To assist 12,000 students (average bursary R5,500)

14 Building a Sustainable Financial Aid Scheme EXPANDING THE SCHEME … Public FET Colleges The National Certificate (Vocational) is a new qualification at each of levels 2, 3 and 4 of the NQF. The programmes include: Civil Engineering and Building Construction Electrical Infrastructure Construction Engineering and Related Design Finance, Economics and Accounting Hospitality Information Technology and Computer Science Management Marketing Office Administration Primary Agriculture Tourism These new programmes are intended to directly respond to the priority skills demands of the South African economy.

15 Building a Sustainable Financial Aid Scheme KEY PARAMETERS In order to qualify for assistance a person must be: a South African citizen, registered at a public South African Higher Education Institution, studying for a first higher education (undergraduate) qualification and who is able to demonstrate potential for academic success and is financially needy as determined by the NSFAS National Means Test.

16 RECOVERIES Building a Sustainable Financial Aid Scheme

17 Building a Sustainable Financial Aid Scheme RECOVERIES (cont.) Monthly Examples NSFAS continues to implement improved loan recovery strategies resulting in improved collections

18 ALLOCATION OF FUNDS Building a Sustainable Financial Aid Scheme

19 REINJECTION OF RECOVERED MONEY Building a Sustainable Financial Aid Scheme 1999R14,2 million 2000R24 million 2001R175 million 2002R150 million 2003R211 million 2004R263 million 2005R280 million 2006R305 million 2007R341 million

20 Building a Sustainable Financial Aid Scheme MODES OF OPERATION … continues 4 NSFAS allocates funding to institutions. 4 Allocation formula is informed by the number of students and cost of study at the respective institutions.

21 Building a Sustainable Financial Aid Scheme MODES OF OPERATION … continues 4 Financial Aid Offices: 4 invite application; 4 NSFAS M eans Test and assess academic potential of applicants … (money goes to the poorest most academically able students); 4 determine the size of the award;

22 MODES OF OPERATION 4 Financial Aid Offices: 4 ensure that the loan agreement forms are completed correctly; 4 send batches of forms with interim reports to NSFAS claiming money on behalf of the students. 4 NSFAS processes the claims and makes payment. 4 Financial Aid Offices credit student fee accounts. Building a Sustainable Financial Aid Scheme

23 Audits & Awards to Performers Provision is made for special awards to persons or organisations which have distinguished themselves in the field of student financial aid. Awards given out on 22 April 2007 for the 2006 academic year included: Most Improved Merged Financial Aid Office Gold: University of Johannesburg Silver: University of the North West Bronze: University of Kwa-Zulu Natal Improved Compliance with NSFAS Requirements Gold: Nelson Mandela Metropolitan University Silver: University of Fort Hare Bronze: Walter Sisulu University (Butterworth) Best Compliance with NSFAS Requirements Vaal University of Technology Recognition of Consistent High Level of Performance Rhodes University Central University of Technology University of Cape Town Building a Sustainable Financial Aid Scheme

24 Building a Sustainable Financial Aid Scheme NSFAS Parameters

25 Building a Sustainable Financial Aid Scheme SOME AREAS OF FOCUS going forward Increased electronic interface with institutions including the use of electronic Loan Agreement Forms Reduction in Age of Majority (Children’s Act) Improved communication with institutions, particularly with VC’s regarding audit findings Compliance in respect of the new National Credit Act South African private sector and other potential funders Continued focus on reaching all prospective and deserving students