1 portfolio committee on education national assembly ----------------------- 02 november 2007...

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


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


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


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



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


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


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



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)


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.


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



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


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


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


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.


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.


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


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


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

1 portfolio committee on education national assembly ----------------------- 02 november 2007...

Documents

nsfas strategic goalsbuilding

financial support

nsfas presentation tonsfas

phambili nsfas pambili

ministry of education

needy south africans

allocating funding

needy student