Achievements of NSFAS are worthy of being defended

By Ishmael Mnisi

The ministerial committee appointed by the Minister of Higher Education, Science and Innovation Blade Nzimande took a view that the role of the National Student Financial Aid Scheme (NSFAS) is worthy of being defended.

I further argue that the NSFAS’s achievements are also worthy to be defended, this includes the financial investment made by the democratic government in education.


By the standards of the United Nations Educational, Scientific and Cultural Organisation (Unesco), South Africa continues to spend a large share of its national budget on education.

Spending on education as a proportion of overall government expenditure was 19.75% in 2022 which is in line with Unesco recommendations which advocate for allocating 15-20% of public spending to education.  South Africa’s spending on gross domestic product (GDP) is at 6.7% which exceeds the benchmarks set by Unesco of allocating 4-6% of GDP to education.

One of the most generous students funds

In relation to post-school education and training, in 2021, the ministerial committee of inquiry appointed by Nzimande to look into the business processes, systems and capacity of NSFAS spoke of the important role of NSFAS in extending the reach of social justice to the marginalised of our society. The committee took a view that such a role is worthy of being defended.

South Africa has one of the most generous and progressive student financial aid systems supporting students from poor and working-class backgrounds in the world today. There is no doubt that the South African government has made a decisive break in these reproductive legacies of the past.

This is clear if we can simply look at several generations of NSFAS recipients now having successfully graduated, found meaningful employment (in government and in the private sector) and starting their own businesses, raising families, serving communities and our country proudly.

Through the Tertiary Education Fund of South Africa (Tefsa) access to higher education was provided from 1991 to support students from poor and working class backgrounds.


In 1991, a total of 7 240 students benefited from Tefsa funding to the value of R33 million. By 1995, over 43 000 students were receiving Tefsa funding.

In relation to NSFAS, which was established though an Act of parliament as an independent statutory body in 1999, 83 251 students were receiving support of approximately R437 million by the year 2000.  

R47-billion budget funded 1.1 million students

In 2010 , technical and vocational education and training (TVET) college students were included in NSFAS financial support for the first time. This year 125 899 students were funded, and the NSFAS budget grew to R1.76-billion. Again in 2010, the government initiated the process of the first ministerial review of NSFAS. In the years following this review, additional financial resources were allocated to NSFAS with additional allocations provided to address student debt.

 

By 2014, NSFAS funding had grown to R8.96-billion, supporting 414 802 students in universities and TVET colleges.

In 2018, the government introduced a new fully-subsidised model of student funding, which has now been in place for five years.

Through this model, students not only receive support for tuition fees, but receive additional support for living, accommodation, learning materials support and some instances transport allowances.

 

By 2020, NSFAS funding was supporting 765 740 students with a total budget from the state of R37-billion.

 

The percentage growth in NSFAS funding over the five-year period from 2015 to 2020 was 299% and if you consider the period from 1991 at the inception of Tefsa to 2020, the growth rate in student numbers is 6 908%.

This year, the NSFAS budget is at R47-billion, funding approximately 1.1 million students. Of this amount, universities have been allocated R38.6-billion and TVET colleges R8.9-billion.

Over 60% of undergraduate students in our public university system receive support from NSFAS and well over 90% of students in TVET colleges.

The figures show just how important the financial aid provisions from the state distributed through Tefsa and NSFAS have been over the years.

The inspiration for these commitments are drawn directly from the Freedom Charter, grounded in the Constitution of our country, and highlighted in the vision of our post- apartheid education policy.

This includes a commitment to expand access to further and higher education with a recognition that the state has a responsibility, through reasonable measures to make higher education progressively available and accessible.

Section 29 (1) of the Constitution is a reflection of the content of the Freedom Charter, which asserts: “Education shall be free, compulsory, and universal for all children;
higher education and technical training shall be open to all by means of allowances and scholarships awarded on the basis of merit”.

  • Mnisi is the NSFAS spokesperson. He writes in his personal capacity

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