By Edwin Naidu
How long should the National Student Financial Aid Scheme (NSFAS) be given to get its act together?
On Freedom Day, the Minister of Higher Education and Training, Dr Nobuhle Nkabane, had to accept another apology from the troubled student funding scheme over delayed payment of Technical Vocational Education Training (TVET) student allowances originally scheduled for 25 April.
Due to a system glitch related to the size of the batch files, these payments were processed on Saturday, 26 April, and have been reflected in all student accounts as of 27 April.
NSFAS is actively collaborating with its financial services institution to resolve this issue and prevent any recurrence in the upcoming months.
Around 800 students at a specific institution experienced challenges transferring funds, which the scheme committed to fixing this by Wednesday.
Promises! Promises! While that was the title of a 1983 song by British pop band Naked Eye, referring to a relationship, this is also a relationship that is not working for the country and requires desperate intervention.
The song goes:
“You made me promises, promises
Knowing I’d believe
Promises, promises
You knew you’d never keep.”
The love affair between NSFAS, the tertiary sector and the students it is meant to serve, is sorely tested despite an inexperienced new board and a wet-behind-the-ears interim CEO who, despite his excellent qualifications, seems to have no experience or clue, let alone standing, in the higher education sector.
Waseem Carrim, the former CFO and CEO of the National Youth Development Agency (NYDA), was appointed acting CEO on 5 March, firmly committed to tackling the crisis. More than a month later, it is not a great start.
NSFAS cannot seem to function without falling into dysfunction. While some problems predate the new brooms in charge, NSFAS has outstanding amounts from 2024 owed to students and accommodation providers.
The scheme is currently working on communication to outline the way forward regarding the outstanding amounts of 2024, which will be released by the end of April.
What is needed is people who can do their job and process payments efficiently, not communication, which was the style of Nkabane’s predecessor, Professor Blade Nzimande, who seemed to believe public relations would erase the corruption and the scandals prevalent at NSFAS and indeed many Sector Education Training Authorities under his watch.
Nkabane needs time to fix the mess Nzimande left. It is a monumental task, especially considering the shenanigans at some of the Setas. That’s for another day.
Concerning NSFAS, Nkabane ought to invest in a review of the state of higher education in South Africa to understand the funding crisis, the curriculum transformation, the success and failure rate, and most importantly, whether the country is getting bang for its buck regarding its investment in the sector.
Of course, the suggestion of a review is old news, made more than a year ago, but Nzimande did not listen to anybody because he thought he had all the answers.
The results of many failures in higher education are glaring.
Professor Jairam Reddy, one of the architects behind the founding vision of tertiary education in the post-apartheid era, called for a review of the state of higher education.
Having chaired the National Commission on Higher Education (NCHE) in 1995 during the tenure of the country’s first democratic minister of education, Professor Sibusiso Bengu, Reddy said that the time was ripe for a new commission.
This commission should swiftly review the state of higher education and propose urgent changes. Unlike the NCHE, which he chaired for 18 months, Reddy suggested this should be a shorter exercise – perhaps six months – and involve about five experts on higher education, including one international expert.
The NCHE report’s proposals were used to draft the post-apartheid White Paper on Higher Education, which provided the policy outline for the Higher Education Act. A new review would certainly guide the needs of the future.
Reddy, a former council chair at the Durban University of Technology, also called on the department to review the standard institutional statutes regarding university councils and leadership suitability, given the changes in the higher education environment during the past 15 years.
He said the DHET task force, of which he was a member, examined the university councils and made recommendations, among them reducing the number of council members from 30 to 24 or 20 for each university and reducing ministerial nominees from five to three.
Of course, if you want to flood these councils with cronies, you would ignore such a suggestion. New brooms sweep clean, and Nkabane is committed to ensuring that higher education serves all people, not just hers.
Reddy’s call for a review of the tertiary system is premised on identifying the strengths and weaknesses of higher education and critically evaluating the effectiveness of certain institutional mergers that were initiated by the late Professor Kader Asmal, the minister of education, and were implemented by him and his successor, Naledi Pandor. The mergers took place in 2004 and 2005.
The funding of the higher education system needs to be looked at again, too—is it adequate and equitable, and what is the efficacy of the NSFAS, the government’s bursary scheme for students who have been struggling to overcome a myriad of problems?
Reddy said the NCHE in 1995 recommended a well-thought-out funding model for students in tertiary education in which students who could afford university fees were not to be funded; a second category, which comprised most of the incoming black students, previously denied university education and mostly from poor backgrounds, were to be given bursaries; a third category in the middle who could afford partial fees were to be given loans to be repaid on graduation and entering the world of work.
He told me this model worked well for a few years despite the very low loan repayment rate. However, this model was turned on its head during Jacob Zuma’s presidency and the #FeesMustFall campaign. Most students are expected to be fully funded, which is simply unaffordable despite a considerable increase in NSFAS funding.
Reddy, a former vice-chancellor of the University of Durban-Westville (which merged with the University of Natal to become the University of KwaZulu-Natal), said the funds were initially transferred to universities and dispersed according to their student requirements.
Then, at some point, the dispersing of NSFAS funds was centralised. He said this has led to ongoing problems, including the current issues related to the fund.
In his view, if the funding is outsourced to individual universities, they are better positioned to disperse the funds. In some cases, universities will need assistance, which can be easily provided.
“The whole model of NSFAS funding, as currently administered, needs to be revisited,” he said.
Nobody listened.
The ongoing troubles at NSFAS indicate a need to consider what the education and civil society experts propose as a reasonable way forward, per Reddy’s suggestion. Otherwise, Nkabane will constantly entertain excuses from the sorry NSFAS without finding a way forward that benefits South Africa.
“Access to education is not just a privilege; it is a fundamental right that facilitates personal and national growth,” the minister said on Monday.
“This statement is meant to address two critical matters that are at the heart of my commitment to supporting our students in their pursuit of educational excellence: the timely disbursement of TVET allowances and the NSFAS appeals process are paramount towards a streamlined and transparent funding process that ensures that no student is left behind.”
Promises! Promises! The minister should act on NSFAS’s broken promises, given her noble intentions. A fresh review could provide better solutions than being hostage to the ongoing NSFAS ineptitude.
Edwin Naidu is the Editor of Inside Education.
INSIDE EDUCATION