Over 87 000 students could be left unfunded if university funding is cut by 10% in 2024, according to the NSFAS

Over 87 000 students could be left unfunded if university funding is cut by 10% in 2024, according to the NSFAS. There are many concerns about a smooth transition in the Post School Education Sector (PSET), as the 2024 academic year approaches.

Consequence Management and Investigation Findings

In order to address issues associated with direct payments, NSFAS board chairperson Ernest Khosa stressed the importance of firm consequence management. It was revealed in 2023 that key individuals, including NSFAS CEO Andile Nongogo, were involved in payments to Fintech companies.

NSFAS Challenges and Legal Disputes

After an investigation by Werksmans Attorneys, CEO Khosa initiated a legal dispute regarding allegations and procurement system review.

Potential Impact of Budget Cuts on NSFAS

There was concern raised regarding the potential impact of budget cuts imposed by the National Treasury on NSFAS. Acting CEO Masile Ramorwesi presented calculations indicating that a 10% reduction in university funding could leave 87,712 students without funding for the 2024 academic year.

Committee Response and Concerns

Despite considering the severe consequences of budget cuts on higher education institutions, the committee expressed concerns about loadshedding and urged stakeholders not to solely blame NSFAS for failures.

Role of University Councils and Stakeholder Engagement

Nompendulo Mkhatshwa, Chairperson of the Higher Education Committee, stressed the importance of university councils in supporting accountability. Committee members also stressed the importance of honest and transparent stakeholder engagement.

Enrollment Trends in South African Universities

In 2023, Universities South Africa (USAf) expects more than 210,000 first-time students to enroll in programs at South Africa’s 26 public universities. More than 1.1 million students are expected to enroll in the public sector, with about 60% female students.

Call for Funding Equilibrium in TVET Colleges

The South African Public Colleges Organisation (SAPCO), representing the country’s 50 TVET colleges, called for greater funding equilibrium, particularly in living allowances for TVET students. Among the proposed strategies by SAPCO were direct leases and rental agreements between NSFAS, service providers, and colleges.

Student Union Perspectives on Accommodation Challenges

Students from both universities and TVET colleges are disproportionately affected by housing challenges, according to the South African Union of Students (SAUS). To mitigate potential instability, they urged the department to closely monitor NSFAS.

Conclusion

NSFAS and South African students are threatened by the impending 10% reduction in university funding. In order to overcome challenges and ensure a stable academic future, stakeholder collaboration, transparent engagement, and equitable funding distribution are crucial.