Presentation for Set 4: Day Two - Justice Home

1 Presentation for Set 4: Day Two15 November 2016 COMMISSION OF INQUIRY INTO HIGHER EDUCATION AND TRAINING:STUDENT FUNDING Presentation OverviewEligibility for NSFAS funding1 The NSFAS means test23 Funding to universities and TVETs4 Different funding programmes5A detailed look at the student centred model6 Measuring impact 7 QuestionsEligibility for NSFAS funding How is this defined and differentiated between Universities and TVET colleges?Exec CoachingDelegationsStaff sessionsTONEFROM THE TOPBUILDING A TEAM ETHOSSMFPMONCOsEligibility principles To redress past discrimination and ensure representivityand equal access;To respond to the human resource development needs of the nation (Preamble to the Act) loans or bursaries granted by the Board may be subject to such conditions as it may determine, either generally or in respect of a particular loan or bursary (Section 19 1) a right to obtain a loan or bursary from the NSFAS cannot be construedfrom any provision of this Act (Section 19 6)Helping students build a brighter tomorrowTwo-pronged core eligibility criteria4 Financial Need Targeting tool means testing recognized as a legitimate mechanism for determining who should receive benefits from the State aid.

2 Multi-purpose differentiate those that need the financial support the most from those who require it the least PLUS determine how much support is needed. Affordability In line with values, NSFAS aims tooffer affordable solutions for students to study at public universities and TVET collegesAcademic potential What does the Act provide if the borrower does not perform satisfactorily in his or her studies, the Board may terminate the granting of finance .. Sufficiency for all first-time entering students, NSFAS recognises that the academic admission of students to a higher education programme is sufficient as an indicator of potential to succeed . Reasonableness Funding made available 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.

3 Accessibility Transparency Affordability Reliability Authenticity Aim of the NSFAS is to provide financial aid to eligiblestudents who meet the criteria for admission to a higher education programme. (Section 2 2)Eligible South African citizensonly, registeredto study for an accredited, funded programmeat a South African public university or TVET funders, at their discretion, may fund students to do courses at Private InstitutionsUNDERGRADUATES studying towards their first higher education qualification, or studying for a postgraduate qualification required in order to practice in a professional field ( PGCE, LLB); unless funder determines otherwiseCORE:Student is able to demonstrate potential for academic success, and that he/she is financially needy. Not eligibleStudents who have already graduated from a first undergraduate degree or diploma (regardless of whether or not this was funded by NSFAS)OTHER FUNDING:Students who have received loans, bursaries or scholarships from non-NSFAS sources that cover the full cost of studyEXCLUSIONS:General rule: no Btech s(but list of those that can be funded in Handbook);No short courses or qualifications/courses that are non-degree/diplomapurposesEligibility for financial aidSPECIFIED AS PART OF THE HANDBOOK Not all funders apply the same eligibility criteria Pre-selected students by some donors may not adopt all these criteria Other funders that have narrower criteria Pages 62 68 (2016 edition)Helping students build a brighter tomorrowFull cost of study How do we understand this, and how has this changed over time?

4 *NSFAS funding CAP how is this determined?How is the split between fee tuition and other allowances, is determinedAllocation Formula Constructed on the basis of projected full cost of study * and enrolment by raceExpected Family Contribution a calculation from the means test that determines the relative need of students in respect to family income and household costsData-driven decision making at NSFAS* An allocations standard operating procedure outlines this processThe full cost of study (FCS) and the NSFAS cap FCS used as a projection of the following year s likely academic cost for the allocation formula and the calculation of the NSFAS capped amount a calculated estimate of what it will cost a student to study at university for one year expanded over time to include wider range of costs Once funding decision made, FCS is used to refer to the cost of study inclusive of actual fee account charges and allowances NSFAS has data as far back as 2005 on these estimates.

5 Accessibility Transparency Affordability Reliability AuthenticityWITWATERSRANDR 46 802,00R 9 340,00R 33 660,00R 19 008,00R 108 810,00 CAPE TOWNR 52 237,00R 42 398,00R 15 667,00R 3 300,00R 113 602,00 JOHANNESBURGR 24 929,00R 24 854,00R 4 756,00R 3 225,00R 57 764,00 PRETORIAR 37 900,00R 33 200,00R 28 800,00R 99 900,00 RHODESR 38 950,00R 1 650,00R 49 300,00R 5 000,00R 94 900,00 DURBANR 27 635,05R 21 615,25R 22 320,00R 9 600,00R 81 170,30 VENDAR 28 543,22R 2 720,00R 17 590,00R 24 410,00R 5 000,00R 78 263,22 NELSON MANDELAR 25 710,00R 950,00R 23 740,00R 17 610,00R 3 000,00R 71 010,00 LIMPOPOR 24 431,00R 5 000,00R 14 500,00R 21 622,00R 4 000,00R 69 553,00 FORT HARER 28 413,00R 2 630,00R 26 000,00R 10 000,00R 4 000,00R 71 043,00 STELLENBOSCHR 39 235,00R 32 755,00R 15 000,00R 86 990,00 FREE STATER 21 774,48R 950,00R 29 045,00R 16 000,00R 5 000,00R 72 769,48 WESTERN CAPER 22 400,00R 1 210,00R 17 710,00R 20 000,00R 6 000,00R 67 320,00 NORTH-WESTR 37 810,00R 1 560,00R 17 500,00R 12 000,00R 8 000,00R 76 870,00 KWAZULU NATALR 31 710,91R 23 265,00R 17 500,00R 5 000,00R 77 475,91 CENTRALR 19 502,93R 858,00R 18 020,00R 18 000,00R 5 000,00R 61 380,93 VAALR 20 238,00R 870,00R 20 611,00R 22 300,00R 4 000,00R 68 019,00 CAPE PENINSULAR 19 177,00R 745,00R 23 409,00R 2 000,00R 3 500,00R 48 831,00 TSHWANER 18 356,88R 1 500,00R 13 331,48R 20 564,00R 4 600,00R 58 352,35 MANGOSUTHUR 21 612,00R 2 000,00R 25 360,00R 19 008,00R 9 500,00R 77 480,00 WALTER SISULU R 20 220,00R 23 498,00R 10 000,00R 2 000,00R 55 718,00 ZULULANDR 17 648,00R 2 837,00R 14 851,00R 13 200,00R 2 000,00R 50 536,00 UNISAR 13 350,00R 5 000,00R 18 350,00 SPUR 24 125,97R 23 500,00R 3 973,33R 6 716,67R 58 315,97 UMP (UNIV MPUMALANGA)R 25 246,40R 3 000,00R 16 500,00R 16 500,00R 1 809,30R 63 055,70 SMU (SEFAKO MAKGATHO UNIV.)

6 R 38 945,00R 5 000,00R 16 052,00R 28 000,00R 7 000,00R 94 997,00 AVERAGER 27 957,80R 2 518,82R 24 090,59R 16 593,26R 4 880,48R 72 402,96 TABLE A4 - FULL COST OF STUDY - 2015 InstitutionTuitionRegistrationResidenceM ealsBooksFCS (A)Actual Fee* Tuition costs account for between 31% (MUT) and 52% (WITS) of the FCS** Average FCS of 12 universities above NSFAS cap. In 2015, cap was R71 800. ** allowance costs recommended by NSFAS but determined at university discretionAllocations formula the basis of NSFAS funding of universities Circles of influenceRacial breakdown of students FTE enrolment -Disadvantaged student index (DSI) Full cost of study (FSC) TuitionResidenceAllowances Allocation (and allocation formula) for the previous year + MTEF grant HEIsNSFASHEMISFCSXDSI (weighting based on race)=Apportionment Factor (AF) applied to the MTEF grant=DSCIDISADVANTAGED STUDENT INDEXDISADVANTAGED STUDENT COST INDEX(notional value)Helping students build a brighter tomorrowNSFAS means testDifferentiating between those who are able to pay and those that can t NSFAS Act 56 of 1999 Purpose of means test 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)

7 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 threshold of R400 000 (2016)Helping students build a brighter tomorrow* For all means-test waived students, EFC = R0 Means test Calculating EFC and award sizeTotal net income = gross family income (minus) tax as per the income tax rates for individuals (updated annually)Estimated Disposable income = total net income (minus) cost-of-living (subsistence allowance for family, dependent on number of household members AND where the family lives)Expected family contribution (EFC) = disposable income x (one tertiary level student) OR (two/more tertiary level students)Means test Calculating EFC and award sizeFull cost of study (as per individual student fee account, incl.)

8 Allowances, where payable*)Non-NSFAS bursaries or scholarships awarded to the studentExpected family contribution (EFC)NSFAS loan or bursary awardedTotal net income = gross family income (minus) tax as per the income tax rates for individuals (updated annually)Disposable income = total net income (minus) cost-of-living (subsistence allowance for family, dependent on number of household members AND where the family lives)Expected family contribution (EFC) = disposable income x (one tertiary level student) OR (two/more tertiary level students)* Learning materials allowance (incl. laptops, books, art equipment, Labcoats, etc.), meals where not provided, private accommodation where applicable, Accessibility Transparency Affordability Reliability AuthenticityMEANS TEST REQUIREMENTS Proof of income of parents, guardian (not older than 3 months) Certified copies of ID: own, parents and all members of household Copies of registration of a sibling at another tertiary institution Separate annexure required for all first-time applicants with disabilities 25 Intheonlineapplicationprocess,studentswh oaremeans-testwaivedonlyneedtosupplythei rownIDcopy, , thiswillcontributesignificantlytoverifyi ngtheeligibilityofindividualstudentstofu nding, of funding to Universities and TVETsMapping the funding to universities and TVET colleges in the last few years2016 Academic Year -Funding Allocations27 Source.

9 NSFAS Strategic Plan 2016/17-2019/20 SourceAmountDHET -TVET Skills FundR849mDepartment of Basic Education -Funza LushakaR1bnDepartment of SocialDevelopment (Provisional)R276mNSFAS RecoveriesR450mUniversities own funding (Estimated)R200mSector Education and Training AuthoritiesR215mOther Funders (Provisional) funding for student s historic debt fundingfor students to -Mid-term budget: Funding AllocationAdditional R9,2bn made available for student funding over the MTEF Transparency Affordability Reliability AuthenticityUniversity Allocations 2016R12,6bn in 2016 DHET -Universities National Skills Fund Department of Basic Education -FunzaLushaka Department of Social Development (Provisional) NSFAS Recoveries Universities own funding (Estimated) Sector Education and Training Authorities (SETA) Other Funders (Provisional) Additional funding for student s historic debt Additional funding for students to continueProgrammecosts are approved by the DHET annually itofunding normsDHET makes allocation to each college on the basis of enrolment for Report 191 and NCVB ursary covers the 20% student own contribution to tuitionAccessibility Transparency Affordability Reliability AuthenticityTVET bursary programme Introduced in 2007 Only funding for the NCV and Report 191 programmes (both highest NQF level = 4) Purpose: Attract young learners into vocational education and training Approx.

10 33-35% of students in these programmes are funded by NSFASA ccessibility Transparency Affordability Reliability AuthenticityTVET bursary programme Report 191 National Curriculum Vocational (NCV) No longer two allocations per TVET single allocation for both programmes of funding TVET Colleges 2016 AllocationsR2,3bn Year# universitystudentsValue of funding2009135 202R 2 818 220 0322010148 387 R3 343 530 6742011216874R4833 866 3792012194 504R5 871 489 8802013194 923R6 729 069 9702014186 150R 6 969940 8222015178961R 7 194618 509 Year# of TVET college studentsValue offunding 200955 173R 312 666 821201061 707R317998 1912011114 968R1 116590 5482012188 182R 1 822497 2652013220 978 R 1 953 253 3612014228642R1991 487 8092015235 988R 2 095 129 942 University vs TVET fundingWhat NSFAS funds?Supporting students to access funding that will contribute to the human resource development needs of the Country40/60 convertible loansAnnual reconciliation of individual student academic performance.