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

2. Overview 1 NSFAS mandate 22014 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

3. 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 191 080 students in 2009 R8,5 billion for about 400 000 students in 2013 over R9,7 billion in 2014 for about 450 000 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

4. University Allocations 2014 R7 605 847 987 for 235 000 students University2014 Allocation CAPE PENINSULA University of Technology337 155 544 CAPE TOWN, University of147 222 799 Central Johannesburg College49 637 221 CENTRAL University of Technology196 197 113 DURBAN University of Technology349 345 806 FORT HARE, University of397 325 143 FREE STATE, University of222 241 383 JOHANNESBURG, University of517 196 087 KWAZULU NATAL, University of477 123 323 LIMPOPO University of 480 485 951 MANGOSUTHU University of Technology259 172 435 4

5. University Allocations 2014 Universities2014 Allocation NELSON MANDELA Metropolitan University257 408 792 NORTH-WEST University340 547 391 PRETORIA, University of303 540 390 RHODES University47 314 061 SOUTH AFRICA, University of278 636 471 STELLENBOSCH University134 069 756 TSHWANE University of Technology874 342 851 VAAL University of Technology276 305 266 VENDA, University of381 180 450 WALTER SISULU University437 712 703 WESTERN CAPE, University of the237 520 853 WITWATERSRAND, University of the270 895 353 ZULULAND, University of333 270 845 5

6. FET College Allocations 2014 R2 107 743 900 for 210 000 students 6 FET Colleges2014 Allocation Boland FET College32 769 517 Buffalo City FETCollege30 120 944 Capricorn FET College68 225 934 Central Johannesburg FET College49 637 221 Coastal KZN FET College73 844 013 College of Cape Town FET College43 273 149 East Cape Midlands FET33 878 700 Ehlanzeni FET College35 497 676 Ekurhuleni East FET College49 534 964 Ekurhuleni West FET College68 915 242 Elangeni FETCollege54 038 595 Esayidi FET College51 750 455 False Bay FET College29 807 287 Flavius Mareka FET College19 519 830 Gert Sibande FET College53 712 866 Goldfields FET College23 383 081

7. FET College Allocations 2014 7 FET Colleges2014 Allocation Sedibeng FET College48 945 606 Sekhukhune FET College27 244 493 South Cape FETCollege25 645 528 South West Gauteng FETCollege77 020 963 Taletso FET College32 543 085 Thekwini FET College34 819 646 Tshwane North FET College70 204 500 Tshwane South FETCollege58 241 018 Umfolozi College FET College58 331 407 Umgungundlovu FET College29 491 085 Vhembe FET College82 559 565 Vuselela FET College35 308 568 Waterberg FET College26 541 222 West Coast FET College35 770 287 Western College FET College46 174 853

8. FET College Allocations 2014 8 FET Colleges2014 Allocation Ikhala Public FET College21 148 498 Ingwe Public FET College33 489 144 King Hintsa FET College19 737 508 King Sabata Dalindyebo FET College34 804 708 Lephalale FET College14 075 941 Letaba FET College27 817 966 Lovedale Public FET College18 516 773 Majuba FET College83 499 849 Maluti FET College37 732 370 Mnambithi FET College34 044 582 Mopani South East FET College34 550 320 Motheo FET College68 319 326 Mthashana FET College27 497 182 Nkangala FET College45 889 182 Northern Cape Rural FET College20 843 096 Northern Cape Urban FET College22 429 372 Northlink FET College59 961 677 Orbit FET College61 662 035 Port Elizabeth FET College34 973 071

9. 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

10. 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 50 000 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

11. 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 43 750 000 University Western Cape R 44 506 321 University of Fort Hare R 45 286 886 Total R 133 543 207 11

12. Advance payments to FET colleges 2014 FET College Total (R) Eastern Cape 22 721 153 Free State 14 825 257 Gauteng 46 793 309 KwaZulu-Natal 44 735 064 Limpopo 28 150 282 Mpumalanga 12 918 393 Northern Cape 4 321 658 North West 13 557 875 Western Cape 22 751 109 Total210 774 100 12

13. The doors of learning and culture shall be opened! Freedom Charter, 1955 Green Paper for Post School Education and Training, 2012 13