In a significant stride towards achieving inclusive access to higher education, Minister Blade Nzimande announced the implementation of the first phase of the Comprehensive Student Funding Model during a press briefing on Monday. The Minister outlined plans to introduce a loan scheme, administered by the National Student Financial Aid Scheme (NSFAS), providing financial support for the “missing middle” students.
The missing middle students, hailing from families with an annual income between R350,000 and R600,000, will now have access to government-funded loans to pursue their studies. Minister Nzimande emphasized the ANC-led government’s commitment to advancing a better life for all as the nation marks thirty years of freedom.
The initial capitalization fund for the loan scheme totals R3.8 billion, with R1.5 billion from the National Skills Fund (NSF) and R2.3 billion from Sector Education and Training Authorities (SETAs). This funding will cover 47% of the estimated 68,446 missing middle students, supporting 31,884 students in the first phase (2024-2025).
The Ministerial Task Team, chaired by Prof Mtose, concluded that the government could develop a comprehensive and universal financial aid solution that is affordable and sustainable in the long term. The plan also includes a commitment to revive NSFAS ICT systems, ensuring efficient administration of the loan scheme.
In the long term (2025-2034), the government plans to increase its seed funding contribution to the loan scheme to R31.6 billion to R42.1 billion over ten years. This sustained effort aims to address the funding gap for tertiary education and promote a consolidated and efficient loan and bursary system in South Africa.
To qualify for the loan, students must meet criteria, including having an annual household income between R350,000 and R600,000, pursuing studies at TVET or public universities, and demonstrating commitment to specified programs, particularly in science, technology, engineering, and mathematics (STEM).
Minister Nzimande also appointed Prof Van Staden, the former Vice Chancellor of Tshwane University of Technology, as the Acting Chairperson of NSFAS, emphasizing the importance of prioritizing readiness for the 2024 academic year.
As the nation eagerly awaits the release of the 2023 matriculation results, NSFAS will provide further details on the loan scheme, including funding guidelines, application procedures, and opening dates. The ANC-led government’s commitment to education is evident in its continued efforts to exceed UNESCO benchmarks for spending on education.
