COMMISSION OF INQUIRY INTO HIGHER EDUCATION AND TRAINING: STUDENT FUNDING Presentation for Set 4: Day Two 15 November 2016
Presentation Overview 1 Eligibility for NSFAS funding 2 The NSFAS means test 3 Funding to universities and TVETs 4 Different funding programmes 5 A detailed look at the student centred model 6 Measuring impact 7 Questions
Eligibility for NSFAS funding How is this defined and differentiated between Universities and TVET colleges?
Eligibility principles Helping students build a brighter tomorrow “To redress past discrimination and ensure representivity and equal access; To respond to the human resource development needs of TONEFRO BUILDING M THE the nation” (Preamble to the Act) A TEAM TOP ETHOS SMF “loans or bursaries granted by the Board may be subject to Exec Coaching PMO Delegations such conditions as it may determine, either generally or in NCOs Staff sessions respect of a particular loan or bursary” (Section 19 – 1) “ a right to obtain a loan or bursary from the NSFAS cannot be construed from any provision of this Act” (Section 19 – 6)
4 Accessibility Transparency Affordability Reliability Authenticity Two-pronged core eligibility criteria Academic potential Financial Need • Targeting tool – means testing recognized as a • What does the Act provide – “if the borrower legitimate mechanism for determining who should does not perform satisfactorily in his or her receive benefits from the State e.g financial aid. studies, the Board may terminate the granting of finance ….”. • Multi-purpose – differentiate those that need the • Sufficiency – for all first-time entering students, financial support the most from those who require it the least PLUS determine how much support is NSFAS recognises that the academic admission needed. of students to a higher education programme is sufficient as an indicator of “potential to succeed”. • Affordability – In line with values, NSFAS aims • Reasonableness – Funding made available to offer affordable solutions for students to study at public universities and TVET colleges should continue to be allocated only to those making sufficient academic progress to complete within 2 years of regulation time (N+2). • Minimum requirement – NSFAS set a course pass rate of 50% for continued funding, but many institutions have adopted different practices. “Aim of the NSFAS is to provide financial aid to eligible students who meet the criteria for admission to a higher education programme.” (Section 2 – 2)
Not SPECIFIED AS PART OF THE Eligible HANDBOOK eligible Not all funders apply the same Helping students build a brighter tomorrow eligibility criteria Pre-selected students by some donors may not adopt all these criteria South African citizens only, registered to Students who have already graduated study for an accredited, funded Other funders that have narrower from a first undergraduate degree or programme at a South African public diploma (regardless of whether or not this criteria university or TVET college. was funded by NSFAS) Pages 62 – 68 (2016 edition) Specific funders, at their discretion, may fund students to do courses at Private Institutions OTHER FUNDING: UNDERGRADUATES studying towards Students who have received loans, bursaries their first higher education or scholarships from non-NSFAS sources qualification , or studying for a that cover the full cost of study postgraduate qualification required in order to practice in a professional field (e.g. PGCE, LLB); unless funder determines otherwise EXCLUSIONS: General rule: no Btech’s (but list of those Eligibility for that can be funded in Handbook); CORE: No short courses or Student is able to demonstrate qualifications/courses that are non- potential for academic success, and financial aid that he/she is financially needy. degree/diploma purposes
Data-driven decision making at NSFAS NSFAS funding CAP – how is this Full cost of study – determined? How do we understand this, and How is the split between fee tuition and how has this changed over time?* other allowances, is determined Expected Family Contribution – a Allocation Formula – calculation from the means test that Constructed on the basis of determines the relative need of students * An projected full cost of study * and allocations in respect to family income and household standard enrolment by race costs operating procedure outlines this process
TABLE A4 - FULL COST OF STUDY - 2015 The full cost of * Tuition costs FCS (A) Institution Tuition Registration Residence Meals Books account for Actual Fee study (FCS) and between 31% WITWATERSRAND R 46 802,00 R 9 340,00 R 33 660,00 R 19 008,00 R 108 810,00 (MUT) and CAPE TOWN R 52 237,00 R 42 398,00 R 15 667,00 R 3 300,00 R 113 602,00 52% (WITS) of the NSFAS cap R 24 929,00 R 24 854,00 R 4 756,00 R 3 225,00 R 57 764,00 the FCS JOHANNESBURG PRETORIA R 37 900,00 R 33 200,00 R 28 800,00 R 99 900,00 RHODES R 38 950,00 R 1 650,00 R 49 300,00 R 5 000,00 R 94 900,00 FCS used as a projection of R 27 635,05 R 21 615,25 R 22 320,00 R 9 600,00 R 81 170,30 DURBAN ** Average the following year’s likely VENDA R 28 543,22 R 2 720,00 R 17 590,00 R 24 410,00 R 5 000,00 R 78 263,22 FCS of 12 academic cost for the NELSON MANDELA R 25 710,00 R 950,00 R 23 740,00 R 17 610,00 R 3 000,00 R 71 010,00 universities allocation formula and the LIMPOPO R 24 431,00 R 5 000,00 R 14 500,00 R 21 622,00 R 4 000,00 R 69 553,00 above NSFAS R 28 413,00 R 2 630,00 R 26 000,00 R 10 000,00 R 4 000,00 R 71 043,00 calculation of the NSFAS FORT HARE cap. capped amount – a STELLENBOSCH R 39 235,00 R 32 755,00 R 15 000,00 R 86 990,00 In 2015, cap FREE STATE R 21 774,48 R 950,00 R 29 045,00 R 16 000,00 R 5 000,00 R 72 769,48 “calculated estimate of what was R71 800. R 22 400,00 R 1 210,00 R 17 710,00 R 20 000,00 R 6 000,00 R 67 320,00 WESTERN CAPE it will cost a student to study R 37 810,00 R 1 560,00 R 17 500,00 R 12 000,00 R 8 000,00 R 76 870,00 NORTH-WEST at university for one year” – KWAZULU NATAL R 31 710,91 R 23 265,00 R 17 500,00 R 5 000,00 R 77 475,91 expanded over time to CENTRAL R 19 502,93 R 858,00 R 18 020,00 R 18 000,00 R 5 000,00 R 61 380,93 *** allowance include wider range of costs R 20 238,00 R 870,00 R 20 611,00 R 22 300,00 R 4 000,00 R 68 019,00 VAAL costs Once funding decision CAPE PENINSULA R 19 177,00 R 745,00 R 23 409,00 R 2 000,00 R 3 500,00 R 48 831,00 recommended TSHWANE R 18 356,88 R 1 500,00 R 13 331,48 R 20 564,00 R 4 600,00 R 58 352,35 made, FCS is used to refer by NSFAS but R 21 612,00 R 2 000,00 R 25 360,00 R 19 008,00 R 9 500,00 R 77 480,00 MANGOSUTHU to the cost of study inclusive determined at R 20 220,00 R 23 498,00 R 10 000,00 R 2 000,00 R 55 718,00 WALTER SISULU of actual fee account university ZULULAND R 17 648,00 R 2 837,00 R 14 851,00 R 13 200,00 R 2 000,00 R 50 536,00 discretion charges and allowances UNISA R 13 350,00 R 5 000,00 R 18 350,00 NSFAS has data as far back R 24 125,97 R 23 500,00 R 3 973,33 R 6 716,67 R 58 315,97 SPU as 2005 on these estimates. UMP (UNIV MPUMALANGA) R 25 246,40 R 3 000,00 R 16 500,00 R 16 500,00 R 1 809,30 R 63 055,70 SMU (SEFAKO MAKGATHO UNIV.) R 38 945,00 R 5 000,00 R 16 052,00 R 28 000,00 R 7 000,00 R 94 997,00 AVERAGE R 27 957,80 R 2 518,82 R 24 090,59 R 16 593,26 R 4 880,48 R 72 402,96 Accessibility Transparency Affordability Reliability Authenticity
Allocations formula – the basis of NSFAS’ funding of universities Full cost of study (FSC) HEIs Tuition Residence Allowances ‘Circles’ of influence Racial breakdown of students – FTE Allocation (and enrolment allocation NSFAS - Disadvantaged HEMIS formula) for the student index previous year + (DSI) MTEF grant
FCS DSI (weighting based on race) DISADVANTAGED STUDENT INDEX Helping students build a brighter tomorrow Apportionment Factor (AF) applied to the MTEF grant = = DSCI X DISADVANTAGED STUDENT COST INDEX (notional value)
NSFAS’ means test Differentiating between those who are able to pay and those that can’t
NSFAS Act 56 of Purpose of 1999 means test Helping students build a brighter tomorrow Determines the relative need of all the students who have applied (EFC)* Determines how much funding a student requires based on their full cost of study (FCS) Determines which students are not eligible (where EFC = FCS) Does not apply an income threshold (exception: TVET bursary funding AND funding for students with disabilities) TVET funding = income threshold of R122 000 below which EFC = R0 Funding for students with disabilities = income * For all means-test waived students, EFC = R0 threshold of R400 000 (2016)
Means test – Calculating EFC and award size Estimated Disposable income Total net income = gross Expected family contribution = total net income – (minus) cost- family income – (minus) tax as (EFC) = disposable income x of-living (subsistence allowance per the income tax rates for 0.33 (one tertiary level student) for family, dependent on individuals (updated OR 0.20 (two/more tertiary level number of household members annually) students) AND where the family lives)
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