Student financial aid allocations to Universities and FET Colleges 2014 Presentation to the Portfolio Committee on Higher Education and Training 19 February 2014

Overview 1 NSFAS mandate Allocations to Universities & FET Colleges 3Funding shortfall challenges Funding shortfall 2014 Student Debt Claims in excess of allocations 2013 Unfunded programmes e.g. Bachelor of Technology Advance payments and registration fees 2

NSFAS mandate The mandate of NSFAS is to disburse funds to students at the 25 public universities and 50 (FET) colleges Applicants must meet the NSFAS eligibility criteria of financial need and academic ability to succeed Funding has increased significantly over the past 5 years: R3,2 billion for students in 2009 R8,5 billion for about students in 2013 over R9,7 billion in 2014 for about students Despite these substantial increases, funding still falls far short of demand from eligible students Disbursement to students is by universities and colleges, each with its own systems and procedures – 73 different systems 3

University Allocations 2014 R for students University2014 Allocation CAPE PENINSULA University of Technology CAPE TOWN, University of Central Johannesburg College CENTRAL University of Technology DURBAN University of Technology FORT HARE, University of FREE STATE, University of JOHANNESBURG, University of KWAZULU NATAL, University of LIMPOPO University of MANGOSUTHU University of Technology

University Allocations 2014 Universities2014 Allocation NELSON MANDELA Metropolitan University NORTH-WEST University PRETORIA, University of RHODES University SOUTH AFRICA, University of STELLENBOSCH University TSHWANE University of Technology VAAL University of Technology VENDA, University of WALTER SISULU University WESTERN CAPE, University of the WITWATERSRAND, University of the ZULULAND, University of

FET College Allocations 2014 R for students 6 FET Colleges2014 Allocation Boland FET College Buffalo City FETCollege Capricorn FET College Central Johannesburg FET College Coastal KZN FET College College of Cape Town FET College East Cape Midlands FET Ehlanzeni FET College Ekurhuleni East FET College Ekurhuleni West FET College Elangeni FETCollege Esayidi FET College False Bay FET College Flavius Mareka FET College Gert Sibande FET College Goldfields FET College

FET College Allocations FET Colleges2014 Allocation Sedibeng FET College Sekhukhune FET College South Cape FETCollege South West Gauteng FETCollege Taletso FET College Thekwini FET College Tshwane North FET College Tshwane South FETCollege Umfolozi College FET College Umgungundlovu FET College Vhembe FET College Vuselela FET College Waterberg FET College West Coast FET College Western College FET College

FET College Allocations FET Colleges2014 Allocation Ikhala Public FET College Ingwe Public FET College King Hintsa FET College King Sabata Dalindyebo FET College Lephalale FET College Letaba FET College Lovedale Public FET College Majuba FET College Maluti FET College Mnambithi FET College Mopani South East FET College Motheo FET College Mthashana FET College Nkangala FET College Northern Cape Rural FET College Northern Cape Urban FET College Northlink FET College Orbit FET College Port Elizabeth FET College

Pilot programme funding shortfall indicators  In the pilot programme, challenges related to the provision of student financial aid become visible much earlier in the academic year, not at the end of the year or at the beginning of the following year.  These include the problems of: –Student historic debt –Prior year claims in excess of allocation –Current year funding shortfall –Unfunded programmes  The new student-centred model requires financial aid to be available at the time of admission 9

Funding challenges  Student historic debt R230 million provided from the R1billion allocated by the National Skills Fund to pay student debt  Claims in excess of allocations 2013 Universities - R370 million FET Colleges R161 million  Funding shortfall 2014 Estimated shortfall R2 billion for students Collecting data from institutions to quantify the funding shortfall for registered, unfunded and underfunded students  Unfunded programmes leave senior students unfunded, including student leaders Bachelor of Technology requires R500 million a year Some universities use other funding for B Tech 10

Advance payments 2014 NSFAS provides advance payments to universities and colleges –Universities - up to 30% of their annual allocation –Colleges – up to 10% of their annual allocation. –These upfront payments are based on requests by institutions and are funded from loan recoveries. –Upfront payments ensure, inter alia, that registration fees are not required from NSFAS students Some universities still demand that NSFAS students pay registration fees Universities advance payments 2014 Mangosuthu University of Technology R University Western Cape R University of Fort Hare R Total R

Advance payments to FET colleges 2014 FET College Total (R) Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total

The doors of learning and culture shall be opened! Freedom Charter, 1955 Green Paper for Post School Education and Training,