Question NW519 to the Minister of Higher Education, Science and Innovation
27 March 2023 - NW519
Zondo, Mr S S to ask the Minister of Higher Education, Science and Innovation
Considering that the increasing student debt has been a persistent problem for the Republic’s economy and the higher education sector due to inflation and the limited funding provided by his department, causing a gradual increase by at least R2 billion annually over the past decade, having snowballed from R13,162 billion in the 2019-20 financial year to R16,5 billion in the 2021-22 financial year, (a) what measures has his department put in place to curb the increase in student debt for the 2022-23 financial year and (b) how has his department capacitated the National Student Financial Aid Scheme for the 2023 academic year to meet the financial needs of disadvantaged students?
Reply:
a) Government contributed R1.7 billion to NSFAS following a due diligence exercise that was undertaken in 2018 towards historic debt owed to universities by continuing or returning NSFAS qualifying students, registered in 2018. The allocation targets students who were subject to the R122 000 family income threshold and the NSFAS funding cap, and covers students registered in 2019, 2020 and 2021. Students must meet the academic progression criteria for the years being claimed for and had to sign an acknowledgment of debt with their institutions. This project is work in progress as it is subject to an audit process required by NSFAS and is yet to be finalised.
Secondly, as for the 2022 academic year, NSFAS applied the household income threshold of R350,000 to all students who applied for financial aid for the 2022 academic year and beyond. This means continuing students who were subjected to the R122 000 threshold and NSFAS cap, qualified for the full cost of study and thus would not incur debt.
Thirdly, there have been yearly compacts between my Ministry and the councils of universities to ensure fees remain affordable for poor and working-class students as well as missing middle students. In 2022 a compact was reached with universities to increase tuition fees and accommodation fees to a maximum of CPI at 4.23% for tuition fees and CPI+2 to a maximum of 6.23% for accommodation fees.
b) The National Student Financial Aid Scheme (NSFAS) allocation for the 2023 academic year for universities is R38.674 617 billion covering an estimated 62% of the undergraduate population studying towards an approved qualification at an institution, and who meet the qualifying criteria. The Minister has also approved the 10% increase in allowances, institutions have started to load registration data inclusive of this confirmed increase.