Achieving excellence in education together. 8 th September 2016 WHO - - PowerPoint PPT Presentation

Achieving excellence in education together.

8th September 2016

WHO IS APPETD?

• A recognised non-profit company that
• perates as a unified representative body

in support of social, economic and educational processes that benefit learners and private providers

CORE OBJECTIVES ALIGNED TO SOCIAL JUSTICE IMPERATIVES

SECONDARY OBJECTIVES

Dissemination of information Platform for legislative commentary Capacity building

Networking opportunities

APPETD Surety Scheme Trust and reputation

APPETD LEADS THE BROADER PRIVATE

EDUCATION AND TRAINING INDUSTRY THROUGH:

• interaction with legislative authorities in presenting the

needs, benefits and contributory value of the private sector,

• development and empowerment of members to be effective,

sustainable organizations,

• informing and guiding members regarding best institutional,

educational and quality practices,

• promoting education and training as a professional career.

IMPACT OF PRIVATE EDUCATION

SOME OF OUR MEMBERS

OUR NATIONAL REPRESENTATION

• National Skills Authority

(NSA)

• Education & Training

Quality Assurance Committees (ETQAs)

• Higher Education Quality

Committee (HEQC)

• Quality Council for Trades

and Occupation (QCTO)

• Sector Education & Training

Authorities

• S. A. Council of Educators

(SACE)

• S. A. Society for Co-
• perative Education

(SASCE)

• Worlds Skills Steering

Committee

Eastern Cape 5% Gauteng 47% Free state 3% KZN 12% NorthWest 4% Limpopo 7% Mpumalanga 7% Western cape 15%

NATIONAL MEMBER REPRESENTATION

NSFAS & THE MISSING MIDDLE

• NSFAS < R122 000 pa with conditions (Sizwe Nxasana, Chairperson -

NSFAS : April 2016)

• Private higher education – supports low cost and prestigious

institutions

• Low cost institutions could support the Missing Middle: combined

household income between R 122 000 – R 250 000 pa

• No NSFAS loans or grants for missing middle
• NSFAS funds public institutions only – NOT APPETD members

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BANK FINANCE AND COMMERCIAL LOANS – THE MISSING MIDDLE

• Financial Institutions – Fewer loans to Missing Middle
• Students loans issued are too small in value
• Research by Eighty:20 research group indicates non

approval rate of 50%

• Bank loans generally not available for TVET

qualifications

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PRIVATE HIGHER EDUCATION – A PART OF THE SOLUTION

• 80 000 Students in private higher education
• Higher Education Act regulates both public & private providers
• Private providers have a Constitutional right
• Niche Higher Education programmes lead to rapid employment
• No state subsidies, grants or allowances to private providers
• Low cost private providers address the needs of the poor and

should be supported with Treasury funding

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COMMON ACCREDITED QUALIFICATIONS (CHE)

Bachelors Degrees:

• Bachelor of Science in Information Technology
• Bachelor of Commerce
• Bachelor of Business Administration
• Bachelor of Arts
• Bachelor of Public Administration

Diplomas, Higher Certificates & Adv Certificates in:

• Information Technology
• Computer Applications
• Systems Engineering
• Business Administration
• Public Administration
• RPL Practices

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COMMON ACCREDITED QUALIFICATIONS(QCTO) Quality Council for Trades and Occupations(QCTO) Mainly focused on Occupational and Trade Certifications:

• Seta Qualifications – Quality Assurance responsibility
• Employer/Artisan training facilities
• NATED ‘N’ Qualifications – N4 to N6
• Quality Development Partner
• Assessment Centres

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COMMON ACCREDITED QUALIFICATIONS (UMALUSI)

Mainly focused on General and Further Education and Training :

• Nated ‘N’ Qualifications – N1 to N3
• National Certificate Vocations(NCV) – Level 2 to

Level 4

• Quality Assurance

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NATIONAL BUDGET IN CONTEXT

• Higher Education budget is made up of:
• University subsidies – R28 bn
• Education administration – R 14.6 bn
• NSFAS – R14.3 bn
• Skills Development levy – R15.9 bn
• TVET – R6.9 bn
• None to private providers
• Taxpayer cost per student per year: R 42 600

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EXPENDITURE ON HIGHER EDUCATION AS % OF GDP, 2012

• % of GDP is < 1% ie 0.7%

4.50 3.00 2.18 1.76 1.44 1.39 1.38 1.24 1.20 0.95 0.93 0.71 Cuba China Finland Malaysia Ghana USA Senegal Australia India Brazil Chile South Africa

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TRUE COST OF PUBLIC EDUCATION (e.g. 1st Year B.Com at Wits)

• University fees cost:
• Parents – R40 000 (approximately)
• Tax Payer (R42.6 bn / 1 m students) – R 42 600
• Donor & Third Stream Funding (Eg: Wits – R20 000)
• Total cost – R 102 600

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INTERNATIONAL STUDENT FUNDING BEST PRACTICES – PRIVATE INSTITUTIONS

SADC

• Botswana
• Namibia
• Swaziland

International

• Singapore
• Malaysia

TYPICAL PUBLIC UNIVERSITY FEES

University 2015 North–West University R47 000 University of Pretoria R36 250 University of KwaZulu-Natal R39 170 University of Johannesburg R22 520 University of Free State R30 115 University of Cape Town R62 000 Stellenbosch University R33 164

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Average Public University : R 38 428 (High = R 62 000; Low = R 22 520)

DIFFERENTIATION BETWEEN LOW COST & PREMIUM PRICE PRIVATE PROVIDERS

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R0 R10 000 R20 000 R30 000 R40 000 R50 000 R60 000 R70 000 R80 000 Richfield (previously PC Training & Business College) Mancosa Damelin CTI Varsity College Boston Rosebank

BCom Degree (1st year of study)

Average Private Provider Costs: R 25 000 (Includes tablet PC in some cases)

FREE HIGHER EDUCATION - NOT FOR THE RICH OR FINANCIALLY PRIVILEGED

• “FREE higher education for all is a bad idea,” Centre for

Higher Education and Training (CHET) director Dr Nico Cloete.

• Support : “Only the rich and middle class will benefit from

free education as they are likely to qualify for university.”

• “What is easy and morally defensible is free higher education

for the very poor, like those who earn below R120 000 a year.”

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STUDENT UNIONS MUST BE INVOLVED IN FINANCIAL ASSISTANCE PROGRAMMES

• The Pan African Student Movement
• The South African Further Education & Training Student

Association ( Safetsa)

• South African Students Congress (SASCO)
• South African Union of Students (SAUS)

BUT Should not discriminate against low cost private providers

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NATIONAL DEVELOPMENT PLAN

• The National Development Plan for South Africa as well as

the White Paper on Post School Education, records that the Department of Higher Education and Training recognizes that independent private institutions play an important role in the post-school education and training environment.

• Any reconceptualization of a post school education and

training system would most definitely be incomplete without reference to both public and private spheres.

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NATIONAL HIGHER EDUCATION GROWTH TARGETS

• The National Development Plan also requires the higher

education sector to increase enrolment levels annually from 950 000 in 2010 to 1.6 million by 2030.

• Unless we find ways to reduce the costs of delivering higher

education, this increased enrolment will require increased funding.

• Private providers offer a large selection of certificate, degree and

diploma products at affordable prices to cater for the large majority of South African students who do not gain access to public universities.

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SOUTH AFRICA’S POST-SCHOOL SYSTEM, 2010 VS 2014

• 2010 NEET = 2.7m - 2014 NEET = 3.0M (CHET) (Not in Employment, Education or Training)

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SOUTH AFRICA’S POST-SCHOOL SYSTEM, 2010 VS 2014 - IMPLICATIONS

• 3M youth not in employment, education nor training(NEET)
• National youth unemployment Rate - 40%
• Graduate unemployment rate - 5%(As per CHE Submission to

HE Commission)

• Social unrest could be better managed with unemployed

graduates(5%) than youth not in employment, education nor training

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LOW COST PRIVATE PROVIDERS COULD HELP ACHIEVE NATIONAL STUDENT TARGETS

• Private institutions can provide the shortfall at a lower cost & more efficient

rollout, increase productivity and more effective cost management.

• Some of the increased capacity required already exists in the private

education sector eg. one provider has 8000 under-utilised seats and a further 10 000 mothballed seats which could be brought to economic use at short notice

• Quality should not be compromised under any circumstances with the

Council on Higher Education continuing its current Quality Assurance initiatives.

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INCLUSION OF LOW COST PRIVATE HIGHER EDUCATION INSTITUTIONS IN THE SOLUTIONS TO SA’s HIGHER EDUCATION NEEDS

In the spirit of the vision of the National Development Plan, it is imperative for the South African government and in particular the Department of Higher Education and Training and the National Treasury to seriously consider funding low cost private tertiary education. The substantial ETD capacity that has already been created by providers like Richfield could:

• Improve access & RPL
• Increase success rates
• Increase graduate employment rate (95% - CHE)

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RECOMMENDATION 1: CONTINUE TO SUPPORT LOW OR NO INCOME FAMILIES THROUGH NSFAS BUT BRING IN THE PRIVATE PROVIDERS

• Current: To qualify for NSFAS (less than R122 000) means that

most of the actual middle class could be classified as “poor” – and they account for 75% of the population.

• Proposed: The scheme be continued but the discrimination

against low cost private providers be eliminated and they participate in the same manner as public universities.

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RECOMMENDATION 2 – ASSIST THE MISSING MIDDLE WITH A R25 000 PA VOUCHER FROM NATIONAL TREASURY

• A voucher system of R25 000 (> R122 000 but less than R250 000 pa)

per year of study, subject to success in the prior year.

• Participating private providers should be pre-approved and funds

payable to only the accredited, registered and approved PHEI’s directly.

• Role players should have to find a balance between helping poor

students and low income families without giving privileged students unfair favour.

• Funding should be only directed to priority economic sectors where

demand for skills and job creation is in the increase.

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RECOMMENDATION 3: RECOGNITION OF PRIVATE PROVIDERS AS PART OF THE SOLUTION TO SA’s HIGHER EDUCATION NEEDS

• Recognise low cost private HE providers as a solution to South

Africa’s Higher Education needs. Identify them through criteria such as accreditation, registration, infrastructure, capacity, success rates, throughput rates and employment placement rates

• Establish national criteria for monitoring targeted access,

throughput rates and success rates and the independent verification of these.

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