Registration Planning and Enrollment Targets in Higher Education Institutions & National Student Financial Aid Scheme: briefing by Department of Higher Education and Training

Meeting report

Registration Planning and Enrolment Targets in Public FET colleges & the Public Adult Education and Training centres
Mr Bheki Mahlobo, Acting Deputy Director-General: Further Education and Training Colleges, DHET, presented the briefing on registration planning and enrolment targets, with specific reference to the Further Education and Training (FET) colleges and the Public Adult Education and Training centres (see attached document).

The briefing was given within the context of outputs 5.2 and 5.3 of the Minister of Higher Education and Training’s delivery agreement with the President and of the FET Summit recommendations. Output 5.2 provided for increased access to training programmes leading to intermediate and high level learning.  Output 5.3 provided for increased access to occupationally-directed programmes. The FET Summit resulted in nine recommendations.

Enrolment planning covered a review of programme offerings, programme costs, financial provision, lecturer and support staffing levels and enrolment targets.  Programme offerings were classified into engineering studies (N1 to N3), post-matric non-university qualifications (N4 to N6), National Certificate (Vocational) (NC(V)) programmes (levels 2 to 4) and occupational qualifications (levels 1 to 4).

A breakdown of the total cost, subsidy and cost to the student for the various programmes was provided.  The budget allocations for the 2010/11 fiscal year and the enrolment targets for each province were summarised.  The total national budgeted amount was R3.8 billion and the total number of full-time students (excluding students enrolled in occupational programmes) was 202,421. The total number of lecturers and support staff was 8,559 (a ratio of one lecturer per 22 students).

The briefing included an outline of the targets set for the National Skills Development Strategy No. 11 and the expansion of financial aid provided by the State to students.  During 2010, a total amount of R318 million was disbursed to 65,000 students. The Department projected that the number of beneficiaries would increase to 161,000 students in 2011.  A progress report on student enrolments indicated that 4,176 students had been enrolled at 41 of the 50 FET colleges as at 25 January 2011.

The briefing was concluded with a breakdown of the number of Public Adult Education and Training centres, educators, students, budget allocations and costs in each province.  The total budget for adult education programmes for 2010 was R1.3 billion (increasing to R1.4 billion in 2011).  The total enrolment in 2010 was 265,000 students, increasing by 2% to 269,000 in 2011.  The target for 2014 was 300,000 students.

Registration Planning and Enrolment Targets in Universities & National Student Financial Aid Scheme
Ms Kirti Menon, Acting Deputy Director-General: Universities, DHET, presented the briefing on registration planning and enrolment targets, with specific reference to universities as well as the briefing on the National Student Financial Scheme (see attached document).

The presentation included graphs illustrating the growth in student headcount, the participation rate (per population of 20 – 24 year olds), undergraduate enrolment, postgraduate enrolment and enrolment in the fields of science, engineering and technology (SET) and in teacher education. 

For the period 2000 to 2008, the number of students enrolled at universities had increased by 4.6%.  The expected headcount growth for 2008 - 2013 was 2.7%.  The required participation rate was 20% by 2013.  The 2010 university enrolment targets were 277,000 undergraduate diploma students, 400,000 undergraduate degree students and 118,000 postgraduate students.

The briefing included a breakdown of the approved allocations for the 2011/12 to 2013/14 Medium Term Expenditure Framework (MTEF) period for the National Student Financial Aid Scheme (NSFAS).  The Department’s request for additional funding for the same period was approved by the National Treasury in December 2010.  The total NSFAS approved allocation for the 2010/11 fiscal year was R1,969,770 (increasing to R3,043,835 in 2013/14) plus additional funding of R1,599,990 (increasing to R2,125,595 in 2013/14).

A summary of the implementation of the NSFAS Ministerial Committee recommendations was given.  A significant initiative was the 100% conversion to bursaries of the loans granted to successful final year students.  In conclusion, the Department stressed that demand for financial aid to impoverished students continued to outstrip the funding made available by Government.

Discussion
Mr A Van der Westhuizen (DA) questioned the number of adult learners recorded by the Department as many attended the programmes on a part-time basis and took more than one year to complete a course.  The statistics provided did not differentiate between part-time and full-time students.  He said that the situation at the FET colleges was not acceptable and the number of enrolments at these institutions had declined significantly.  He felt that the Department was at fault because the decision was made to phase out the N1 to N3 programmes despite huge demand, only to subsequently rescind the decision.  The Department decided to phase out the N4 to N6 programmes in 2010 but then decided to extend the offering of these courses.  He asked what the success rate was for the NCV.  The information provided was not clear on whether a pass rate of 16% or 8 to 9% was achieved.  He noted that the per capita cost for successful students was very high and wanted to know what action the Department was taking to reduce the cost.

Ms J Kloppers-Lourens (DA) queried the rationale behind the phasing out of programmes and the subsequent decision to reinstate the courses.  She asked how the industry requirements for the training programmes were determined.  She wanted to know how the Department planned to meet local needs and how the curricula were developed.

Mr K Dikobo (AZAPO) asked what the overall pass rate was in the FET colleges in 2010. He said that there had been a great deal of unhappiness, resistance and low morale amongst the staff at FET colleges when the changes to the programmes offered were announced and wanted to know if all affected lecturers and supporting staff members would be absorbed.  He commented on the disparity in the number of Public Adult Learning centres in the various provinces and asked who decided how many lecturers would be appointed.  He wanted to know what the success rate was for the adult learning programmes.

Ms W Nelson (ANC) remarked that students experienced difficulty in finding positions with companies in order to gain the necessary experiential learning requirement of the training programmes.  She asked if the Department assisted students with placement at suitable organisations.

Mr G Radebe (ANC) asked what criteria were applicable for determining the number of lecturers required at the colleges as the imbalance between lecturers and students was a matter of serious concern.  He noted that nine colleges had failed to provide the weekly reports on enrolments to the Department and asked what the reasons were for the information not being provided.  He noted the decline in enrolment statistics at the FET colleges and asked what strategies were in place to increase the number of students registering at these institutions.  He asked what assistance the Department required from the Committee.

Ms N Vukuza (COPE) was concerned that the briefing did not include sufficient detailed information on the Department’s plans and target dates.  The Committee wished to know more about the process involved, the human resources required, the quality indicators, the systems that needed to be in place and the methods the Department planned to utilise in order to achieve the planned outcomes.  It was important to explain the context and to be explicit about the problems that the Department was attempting to address.  She wanted to know what the Department had done to implement the recommendations of the FET Summit.

Ms N Gina (ANC) remarked that the problems with the enrolment process at colleges appeared not to have been resolved and which reinforced the lack of confidence of the people in the FET colleges.  She felt that the Department needed to do much more to ensure that FET colleges became the institution of choice rather than the second choice if the student had failed to gain university entrance.  She asked what the level of articulation was achieved by the N4 to N6 programmes and whether students were in fact equipped to migrate to the level required by universities.  She was pleased to note the focus on meeting industry needs and wanted to know more about the partnerships being built with the private sector to obtain the additional funding necessary for making the FET colleges economically sustainable.  She referred to the decision to allow 33% of NSFAS funding to be paid over to institutions up front and asked if the institution had to apply for the funds to be released.

Mr S Makhubele (ANC) wanted to know what progress had been made in improving the pass rate for the NC(V) programmes.  He asked if the funds provided to the NSFAS were sufficient to assist all deserving students.  Many students graduating from no-fee schools could not afford to pay the shortfall between the cost of the programmes and the subsidy provided by the State.  He wanted to know what the Department was doing to address the issue of certain FET colleges that experienced a deficit because less funding was provided when the Department decided to discontinue the N1 to N3 programmes.  He asked if the Department included the agricultural training colleges and nursing colleges operated by the Departments of Agriculture and Health in the information provided.  He felt that the skills schools did not get the necessary attention from the Department of Basic Education and asked if the DHET was addressing the concerns that had been raised.  He asked if certain basic programmes were offered by all the FET colleges in the country.

Ms F Mushwana (ANC) asked if any progress was made in ensuring that every qualified artisan had a job once training was complete.  She asked if the Department ensured that the training provided satisfied the actual need for skills rather than merely providing training programmes regardless of the market needs.  She questioned if an FET qualification would ever be considered sufficient or if students would continue to have to obtain an university degree or diploma before being considered fully qualified.

Mr Mahlobo suggested that the Department provided a separate detailed report to the Committee on its performance to the specific plans developed to improve the system.  The presentation prepared by the Department was limited to the issues concerning enrolment at the FET colleges and universities, adult education and NSFAS.

Mr Mahlobo confirmed that the number of adult learners was based on a simple headcount and did not take into account whether the students were studying on a full-time or part-time basis.  In considering ways to reduce the cost of the programmes, the Department took into account the necessary infrastructure requirements, the costs associated with wear and tear on workshop facilities and equipment and the remuneration of lecturers and support staff.  The objective was to improve the quality of teaching, the capacity of lecturers and obtaining value for money.  The Department conceded that it had been a mistake to phase out certain programmes but industry needs had subsequently been recognised and steps were taken to correct the situation.  The Department had to determine the number of staff affected by the changes in the FET system for audit purposes but consensus must still be reached between the Ministry, the Department and organised labour on the exact nature and format of changes in the level of staffing.  The individual provincial authorities determined the number of lecturers and support staff required at the institutions.  There was no applicable national norm for the ratio between students, lecturers and support staff. The previous norm was found to be impractical as the colleges lacked the capacity to meet and to administer the norm.  The budget for the adult learning programmes was not included in the conditional grant.

Mr Mahlobo explained that the Department expected the Sector Education and Training Authorities (SETA’s) to assist students with placements where the 18 month work experience needed to complete the course could be gained.  There was no resistance from FET colleges to provide the Department with information and the reasons for the nine colleges that failed to provide the statistics on time was merely tardiness or a lack of efficient information technology (IT) systems.  A programme with the assistance of the Dutch Government was currently underway to provide colleges with computer equipment and uniform systems.  The number of student enrolments for 2011 was not expected to increase significantly.  The Department had developed a long term strategy to encourage South Africans to study at FET colleges and to elevate their status but the change in perceptions and attitudes would take time as university degrees and diplomas were considered to be superior.  The Department was engaged in developing partnerships with industry to provide work streams to support the colleges.  The SETA’s were involved in the initiatives as well.

Mr Mahlobo said that individual universities decided on the entry levels to the courses offered, for example on whether or not a N6 qualification was acceptable.  The National Skills Development Strategy proposed a review of programme entry levels and the balance between academic knowledge and practical experience.

Mr Mahlobo acknowledged that the phasing out and subsequent re-introduction of certain programmes had resulted in colleges reporting a deficit.  The Minister of Higher Education and Training was requested to provide additional funding to compensate the colleges.  The Department was not responsible for the agricultural and nursing colleges, which was administered by the respective Departments.  FET colleges offered either vocational or occupational programmes and a change in the applicable legislation was necessary to allow for changes in responsibility.  The Department worked closely with the relevant industry sector to develop the curricula, for example the South African Police Service (SAPS) and the construction industry were involved in the review and development of the particular course content offered by the FET colleges.

Mr Zamayedwa Sogayise, Chairperson, NSFAS, advised that the NSFAS management worked closely with the Department to implement the recommendations made concerning the Scheme.

Ms Mushwana questioned the interest charged on the loans granted to students.  In certain cases the amount to be paid back had more than doubled.

Mr Makhubele referred to student demonstrations during 2010 because NSFAS funds had not been paid out.  The institutions were blamed for the problem.  He asked if the interaction between NSFAS and the institutions had improved and if payments were up to date.  He asked if NSFAS was able to divert unspent funds to areas where additional funding was required.  He pointed out that many students were excluded from qualifying for financial aid because their parents earned more than the means test cut-off point yet could not afford to pay for further study.

Mr Van der Westhuizen noted that the number of enrolments had dipped during 2010 and asked if the trend was as a result of reducing the school-going age.  He asked what percentage of deserving students were turned away and if NSFAS granted loans to students planning to enter Government service.  He asked if other Government Departments contributed to the funds made available for bursaries.

Ms Menon replied that the Department did not anticipate or projected the drop in enrolment figures and the trend was not easily explained.  Universities turned away students who did not have NSFAS funding and the demand for loans far exceeded the amount available.  The Department calculated that an additional amount of R5 billion was required to implement the recommendations of the Ministerial review.  More than 30% of students at tertiary institutions received financial aid and more students had other bursaries.  Better use needed to be made of the ‘streams of finance’ and other Departments could contribute additional funds.  The Department constantly moved unspent funds to other areas where necessary.  More work needed to be done on the funding models of institutions and the Department closely monitored eight institutions that were short of funding.  The Department was considering changing the system to allow students to apply for funding at a central location rather than at the individual institutions.  Workshops were held to address the issues concerning the management of students receiving NSFAS funding and the payment process.  The current means test cut-off was an annual income of R122,000 but there was already insufficient funding available for students from impoverished families earning less than the cut-off.

Mr Ashley Seymour, Chief Executive Officer, NSFAS explained that students were required to repay the loans granted.  The amount repaid was limited to 3.5% of earnings with the intention that repayments were affordable.  The interest rate charged was pegged at 80% of the repo rate.  The debt was however not capped and NSFAS was currently reviewing the loan book.

Mr Dikobo noted that 12,000 teachers were graduating from universities.  There was some dispute about the number of teachers required and he wondered if a new type of teacher training college was needed.  He questioned whether universities were able to meet the demand.  He was pleased that 100% of the loans granted to students would be converted to bursaries on successful completion of their courses.

Ms Nelson noted that universities had their own financial models in place and wondered what the effect of the Presidential announcement would be on these institutions.

Mr Radebe remarked that many of the challenges resulting in delays in implementing changes had been in place for some time.  The Committee needed a timeframe from the Department for implementing the various recommendations and necessary changes.  He asked if the Department expected any student demonstrations during 2011.  He suggested that any new funding model developed ensured that deserving students were not excluded from qualifying for financial aid.  He asked if NSFAS was changing the application process requiring students to re-apply for loans every year.  He asked what progress had been made with regard to the two new universities envisaged and where these institutions would be located.  The issue of student accommodation was a major concern and he wanted to know if the Department had a monitoring system in place.  Accommodation costs varied significantly between universities.  He asked if NSFAS could be exploited by universities.

Ms Vukuza pointed out that higher education depended on the level of achievement of the basic education system.  She suggested that a joint meeting was held with the basic education and higher education to discuss the flow from primary education to the workplace.  Higher education covered a vast field, including the universities, technicons, FET colleges and the SETA’s and it was not clear where each institution fitted in.  The issue of providing scarce skills was not new and she wondered why the matter was only recently being addressed.  She asked how the Department tracked what the institutions were doing about meeting future needs.  She felt that the problems with NSFAS were not only related to financial issues.

Ms Gina continued to be concerned about students not being able to gain the necessary practical experience to allow them to graduate.  She was concerned over the treatment of students, who were expected to stand in long queues to register.  The issue of student accommodation was not new and she questioned why the report on the matter would only be available in March 2011.  She asked what the Department was currently doing about the problems with student accommodation.

Ms Menon relied that the task team to investigate the accommodation issues was formed in 2010.  The Department was aware of the general shortage of student accommodation and had made additional funding available for the construction of more facilities.  The task team was exploring different models to address the needs and the extensive mandate included considering alternative funding models, determining minimum standards and costing the provision of accommodation.  The Department had only recently realised the connection between the income streams and the fees charged by universities.

Ms Menon confirmed that two new universities were planned for Mpumalanga and the Northern Cape.  Detailed plans had been developed but there were problems with accessing sufficient funding.  The Department had developed timelines for the implementation of the recommendations and was willing to present a detailed briefing to the Committee.

Ms Menon stressed that the amount allocated to NSFAS was not sufficient to meet the demand and resulted in ‘top-slicing’.  The Department had found that it was not effective to provide a little funding to a greater number of students.  It was necessary to enter into loan agreements on an annual basis as circumstances and requirements changed from year to year.  The procedure requiring proof of disability on an annual basis had been changed and disabled students no longer needed to provide proof every year.

Ms Menon said that the Department monitored institutions but was not always in a position to solve the problems.  Certain universities had limited space available and there will always be a shortage of funds.  The number of teachers required was provided by the Office of the Presidency and was derived from the Planning Ministry.  The Department took into account the extent of delivery by universities and determined if there were any blockages in the system.  The plan developed in 2008 included the number of teachers required to meet the demand but the determination of supply and demand was a complex matter.  The Department had not yet done any work concerning the establishment of teacher training colleges but was in possession of two documents on the subject.

Mr Makhubele asked if NSFAS was able to track the students dropping out before completing their studies.

The Chairperson asked if NSFAS was able to track the recipients of student loans once they had graduated.

Ms Menon replied that the NSFAS system could provide the necessary information.

The Chairperson said that it was not appropriate for universities to determine what funding should be provided by NSFAS.  A clear policy needed to be in place.  He remarked that the report on NSFAS was issued eight months earlier.  NSFAS should have detailed records of all students that were granted loans.  The Committee required a detailed operational plan from the Department within three months.  The plan was necessary to monitor performance and to allow other affected Government Departments to coordinate activities.  He thanked the participants for their contribution to the briefing.

The meeting was adjourned.