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Lerato Mbhiza
THE Department of Higher Education and Training has announced that it has created a R3.8 billion fund within the National Student Financial Aid Scheme (NSFAS) aimed at assisting the country’s “missing middle” students.
According to an announcement made by the department’s minister, Blade Nzimande, the new Comprehensive Student Funding Model introduces measures to support a wider-ranging category of students including those who are currently not supported by the NSFAS bursary and funding policy.
Nzimande made the announcement in Pretoria on Sunday, as he briefed the media on the implementation of the first phase of the Comprehensive Student Funding Model.
This new category is for students whose families have a total income of more than R350,000, but not more than R600,000 per annum.
Previously, NSFAS funding was only available to households falling in the low-income category (R350,000 p/a). Between 2019 and 2022, NSFAS disbursed R123 billion worth of loans for 2,918,624 beneficiaries.
According to the most recently conducted National Income Dynamic Study, it is estimated that 85.6% of all households fall in the low-income category, and 11% of households fall into the missing middle category.
This newly-introduced category by NSFAS “will ensure that the missing middle students will now be able to access financial support from the government in the form of a loan to pursue their studies,” said Nzimande.
The Comprehensive Student Funding Model would be implemented in phases. The first and current phase (2024 – 2025) allocates a total of R3.8 billion. R1.5 billion is from the National Skills Fund (NSF), and R2.3 billion is from the Sector Education and Training Authorities (Setas).
“This amount will fund 47% of the missing middle students, that is, 31,884 of the estimated 68,446 missing middle students,” said Nzimande.
In addition Nzimande appointed Professor Lourens Van Staden as acting chairperson of NSFAS to stand in for Ernest Khosa, who has taken a leave of absence. His announcement comes amid calls for his own resignation following allegations of corruption and maladministration.
Khosa has taken a 30-day leave of absence while the board investigates allegations that he defrauded the institution by taking kickbacks from service providers.
The allegations were leveled by the Organisation Undoing Tax Abuse (OUTA), which also linked Nzimande to the alleged kickbacks. Khosa and Nzimande have both denied they took kickbacks.
Van Staden is a former vice-chancellor of Tshwane University of Technology and in 2022 was appointed as administrator of the troubled Mangosuthu University of Technology in KwaZulu-Natal.
NSFAS has been embroiled in controversy over the past year following its move to appoint service providers to disburse funds directly to students. CEO Andile Nongogo was fired in October following investigations into claims he had a conflict of interest in appointing the service providers.
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