1 portfolio committee on education national assembly ----------------------- 02 november 2007...
TRANSCRIPT
1
Portfolio Committee on Education
National Assembly
-----------------------
02 November 2007
-----------------------
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
4Building a Sustainable Financial Aid Scheme
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 againFrom 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
7,24
0
14,1
61
20,8
11
28,2
60 43,8
76
72,7
88
70,5
74
75,7
64
75,3
46
82,0
69
93,5
32
99,9
49 112,
264
113,
693
122,
696
124,
730
Loan Year
7
91%
4% 2% 3%
African
Coloured
Indian
White
RACIAL BREAKDOWN
Building a Sustainable Financial Aid Scheme
8
R 2
1,5
04,7
36
R 4
1,3
18,1
63
R 5
5,1
76,6
73
R 7
0,4
89,1
93
R 1
54,3
21,3
66
R 3
33,3
81,5
64
R 3
50,9
97,7
98
R 3
94,4
97,9
78
R 4
41,1
74,4
68
R 5
13,1
00,0
00
R 6
35,0
91,0
84
R 7
20,0
00,0
00
R 7
83,0
00,0
00
R 9
85,0
00,0
00
R 1
,216,4
62,0
33
R 1
,382,4
30,8
78
R 0
R 200
R 400
R 600
R 800
R 1000
R 1200
R 1400
(MIL
LIO
N)
AWARDS TOTALS 1991 - 2006
Building a Sustainable Financial Aid Scheme
9Building a Sustainable Financial Aid Scheme
OPERATING COSTS AS A PERCENTAGE OF TOTAL AWARDS:
1996 1.14%
1997 1.10%
1998 1.34%
1999 1.38%
2000 1.76%
2001 1.73%
2002 1.89%
2003 1.79%
2004 1.76%
2005 1.77%
2006 1.75%
10
AVERAGE AWARD SIZE : 1991 - 2006
Building a Sustainable Financial Aid Scheme
R 2
,970
R 2
,918
R 2
,652
R 2
,494
R 3
,517
R 4
,581
R 4
,973
R 5
,207
R 5
,855
R 6
,790
R 7
,339
R 9
,973
R 1
1,0
83
R 1
1,3
84
R 9
,255
R 6
,252
R 0
R 2,000
R 4,000
R 6,000
R 8,000
R 10,000
R 12,00019
91
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
11
SUCCESS RATES
Building a Sustainable Financial Aid Scheme
Courses Passed1996 72.6%
1997 75.3%
1998 76.1%
1999 73.8%
2000 74.6%
2001 73.1%
2002 73.9%
2003 72.3%
2004 74.3%
2005 75.6%
2006 73.8%
12
EXPANDING THE SCHEME … NEW FROM 2007
Bursaries available over the next 3 years:
2007 2008 2009
Funza Lushaka R120m R180m R400m(Teachers)
FET colleges R100m R200m R300m
Social Work R 50m R100m R150m
Building a Sustainable Financial Aid Scheme
13Building 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)
14Building 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.
15Building a Sustainable Financial Aid Scheme
KEY PARAMETERS
2006/07 2007/08
Maximum Award R 32,500 R 35,000
Minimum Award R 2,000 R 2,000
Interest Rate 6% 7%
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
R 0.00
R 100,000,000.00
R 200,000,000.00
R 300,000,000.00
R 400,000,000.00
R 500,000,000.00
R 600,000,000.00
2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09
Building a Sustainable Financial Aid Scheme
17Building a Sustainable Financial Aid Scheme
RECOVERIES (cont.)
Monthly Examples
NSFAS continues to implement improved loan recovery strategies resulting in improved
collections
Monthly Average % Increase
Feb-04 R 14,416,107
Feb-05 R 18,607,659 29.08
Feb-06 R 22,096,770 18.75
Feb-07 R 28,954,168 31.03
Aug-07(6 months) R 36,334,236 25.49
18
ALLOCATION OF FUNDS
Building a Sustainable Financial Aid Scheme
R 0.00
R 200,000,000.00
R 400,000,000.00
R 600,000,000.00
R 800,000,000.00
R 1,000,000,000.00
R 1,200,000,000.00
R 1,400,000,000.00
R 1,600,000,000.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
LoanYear
Recovered Funds DonorFunds
19
REINJECTION OF RECOVERED MONEY
Building a Sustainable Financial Aid Scheme
1999 R14,2 million
2000 R24 million
2001 R175 million
2002 R150 million
2003 R211 million
2004 R263 million
2005 R280 million
2006 R305 million
2007 R341 million
20Building a Sustainable Financial Aid Scheme
MODES OF OPERATION … continues
NSFAS allocates funding to institutions.
Allocation formula is informed by the number of students and cost of study at the respective institutions.
21Building a Sustainable Financial Aid Scheme
MODES OF OPERATION … continues
Financial Aid Offices:
invite application;
NSFAS Means Test and assess academic potential of applicants … (money goes to the poorest most
academically able students);
determine the size of the award;
22
MODES OF OPERATION
Financial Aid Offices:
ensure that the loan
agreement forms are
completed correctly;
send batches of forms with interim reports to NSFAS claiming money on behalf of the students.
NSFAS processes the claims and makes payment.
Financial Aid Offices credit student fee accounts.
Building a Sustainable Financial Aid Scheme
23
Audits & Awards to PerformersProvision 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 TownBuilding a Sustainable Financial Aid Scheme
24Building a Sustainable Financial Aid Scheme
NSFAS Parameters
R 0
R 5,000
R 10,000
R 15,000
R 20,000
R 25,000
R 30,000
R 35,000
R 40,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Maximum
Minimum
Interest Rate
25Building 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