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Building a Sustainable Financial Aid Scheme

NSFAS ANNUAL REPORT - 2006. Building a Sustainable Financial Aid Scheme. National Assembly Portfolio Committee on Education ----------------------- 14 November 2006 ----------------------- National Student Financial Aid Scheme (NSFAS). NATIONAL STUDENT FINANCIAL AID SCHEME.

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Building a Sustainable Financial Aid Scheme

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  1. NSFAS ANNUAL REPORT - 2006 Building a Sustainable Financial Aid Scheme National Assembly Portfolio Committee on Education ----------------------- 14 November 2006 ----------------------- National Student Financial Aid Scheme (NSFAS)

  2. NATIONAL STUDENT FINANCIAL AID SCHEME 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 thegranting of loans and bursaries to eligible students at public higher educationinstitutions and for the administration of suchloans and bursaries; and to provide forthe recovery of loans.

  3. MAIN FOCUS OF NSFAS Building a Sustainable Financial Aid Scheme • The main focus of NSFAS as contained on the preamble to the NSFAS Act is: • to redress past discrimination and ensure representivity and equal access; • to respond to human resource development needs of the nation; and • to establish an expanded national student financial aid scheme that is affordable and sustainable.

  4. NSFAS IN A NUTSHELL Building a Sustainable Financial Aid Scheme Results for 2005/2006 2006 2005 New Grants R 954.8m R724.5m Re-injected funds R265.9m R250.5m Loans Awarded R1 216.5m R985.5m Admin Expenses R21.5m R17.3m Bursary Awards R376.3m R302.6m No of courses passed 75.6% 74.3%

  5. NSFAS IN A NUTSHELL Building a Sustainable Financial Aid Scheme • Results for 2005/2006 (continued) • 2006 2005 • No students assisted 106 852 98 813 • Average Award size R11 384 R9 973 • Loans Repaid R329.4m R245.4m • During 2005/2006: • The one millionth loan was issued • The one billionth Rand was recovered • The number of students assisted per annum • exceeded 100 000 for the first time

  6. KEY PARAMETERS Building a Sustainable Financial Aid Scheme In order to qualify for assistance a person must be: South African citizen, registered at public South African Higher Education Institutions, studying for a first higher education (undergraduate) qualification and who is able to demonstrate potential for academic success and is financial needy as determined by the NSFAS National Means Test. NSFAS maximum award is equivalent to the National Average Full Cost of Study for the first time in 2006

  7. RECOVERIES Building a Sustainable Financial Aid Scheme

  8. Annual Awards since 1991 Building a Sustainable Financial Aid Scheme

  9. SPENDING HIGHLIGHTS Building a Sustainable Financial Aid Scheme • Just over 98% of NSFAS funds are spent in the form of direct awards to students • The administrative expenditure (just less than 2% of the total budget) • is kept to a bare minimum and consists of:  • Salaries 41%  • IT equipment and services 9%  • Postage and Printing 26%  • Auditors and Actuaries 5%  • Communications and Workshops 5% •   Other Expenses 14% All procurement is conducted in accordance with the PFMA and Treasury Regulations

  10. STRATEGIC GOALS 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.

  11. STRATEGIC GOALS Building a Sustainable Financial Aid Scheme To ensure the effective governance, management and administration of NSFAS including: To provide effective and efficient Human Resource management and administration ensure that staff are competent to execute and support the NSFAS Strategy; and are managed in accordance with best current practices. To implement e-business strategies to enhance collaboration with higher education institutions, thereby increasing the efficiency of the Scheme.

  12. SOME AREAS OF FOCUS • Increased electronic interface with institutions including the use of electronic Loan Agreement Form • Envisaged reduction in Age of Majority (Childrens Act) • Improved communication with institutions, particularly with VC’s regarding audit findings • Compliance in respect of the new National Credit Act • Reach out to South African private sector and other funders • Continued focus on reaching all prospective and deserving students • New funding intiatives and partnerships Building a Sustainable Financial Aid Scheme

  13. Building a Sustainable Financial Aid Scheme Thank you

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