NATIONAL STUDENT FINANCIAL AID SCHEME NSFAS was established in 1999 as a public entity by an act of Parliament 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.

Building a Sustainable Financial Aid Scheme MAIN FOCUS OF NSFAS The main focus of NSFAS as contained on the preamble to the NSFAS Act is: to redress past discrimination and ensure representivity and equal access; to respond to human resource development needs of the nation; and to establish an expanded national student financial aid scheme that is affordable and sustainable.

Building a Sustainable Financial Aid Scheme NSFAS IN A NUTSHELL In addition, in 2007 we are expecting to assist up to students at FET colleges with bursaries of approx R5 000 each totalling R100 million.

Building a Sustainable Financial Aid Scheme EXPENDITURE SUMMARY

Building a Sustainable Financial Aid Scheme KEY PARAMETERS Core Award Scheme * * Interest rate to be linked to Repo Rate in future

Building a Sustainable Financial Aid Scheme RECOVERIES Monthly Example NSFAS continues to implement improved loan recovery strategies resulting in improved collections

Building a Sustainable Financial Aid Scheme ALLOCATIONS 2007 Additional teacher education ring fenced funds of R66 million is allocated according to proposals from HEI’s

Building a Sustainable Financial Aid Scheme SPENDING HIGHLIGHTS Just over 98% of NSFAS funds are spent in the form of direct awards to students. The balance is administrative expenditure of R25.4 million (just less than 2%) and is kept to a bare minimum consisting of: Salaries45% (0.7% of total exp) Postage and Printing19% Auditors and Actuaries 9% Communications and Workshops 7% IT equipment and services 6% Other Expenses * 14% (* building maintenance, legal, travel etc) All procurement is conducted in accordance with Treasury Regulations.

Building a Sustainable Financial Aid Scheme STRATEGIC GOALS GOAL 1: To ensure effective governance, management and administration of NSFAS GOAL 2: To ensure effective management and investment of NSFAS funds GOAL 3: To provide effective and efficient Human Resource Management and Administration to ensure that staff are competent to execute and support the NSFAS Strategy; and are managed in accordance with best current practices.

Building a Sustainable Financial Aid Scheme STRATEGIC GOALS GOAL 4: To provide a high level of information technology infrastructure and to provide IT services and related electronic solutions ensuring improved efficiency and communication. GOAL 5: To ensure the efficient and effective functioning of Awards Administration. GOAL 6: To ensure compliance by financial aid offices (FAOs) with NSFAS rules and requirements. GOAL 7: To ensure compliance with the National Credit Act (NCA) and review NSFAS Act

Building a Sustainable Financial Aid Scheme STRATEGIC GOALS GOAL 8: To Increase Collections through improved strategies and processes GOAL 9: To enhance the organisational visibility among the stakeholder communities GOAL 10: To provide research mechanisms into the parameters and operations of the scheme GOAL 11: To provide effective and efficient office administration services ensuring timely supply of resources and equipment in support of the NSFAS Strategy; and are managed in accordance with best current practices.

Building a Sustainable Financial Aid Scheme SOME AREAS OF FOCUS Expansion of Scheme to FET Colleges FUNDISA Fund Increased management of institutional loans Compliance in respect of new National Credit Act Reach out to South African private sector (also banking sector) Continued focus on reaching all prospective and deserving students Management of new programmes on behalf of Government departments Delayed reduction in Age of Majority (implementation of Children’s Act)