NATIONAL STUDENT FINANCIAL AID SCHEME NSFAS was established in 1999 as a public entity by an act of Parliament to provide for the granting of loans and bursaries to eligible students at public higher education institutions and for the administration of such loans and bursaries; and to provide for the recovery of loans.

Building a Sustainable Financial Aid Scheme MAIN FOCUS OF NSFAS The main focus of NSFAS as contained on the preamble to the NSFAS Act is: to redress past discrimination and ensure representivity and equal access; to respond to human resource development needs of the nation; and to establish an expanded national student financial aid scheme that is affordable and sustainable.

Building a Sustainable Financial Aid Scheme NSFAS IN A NUTSHELL As more funds are received the total Value of loans for 2006 should grow by approximately a further R50 million

Building a Sustainable Financial Aid Scheme BUDGET SUMMARY

Building a Sustainable Financial Aid Scheme KEY PARAMETERS NSFAS maximum award is equivalent to the National Average Full Cost of Study for the first time in 2006

RECOVERIES Building a Sustainable Financial Aid Scheme

RECOVERIES Monthly Example NSFAS continues to implement improved loan recovery strategies resulting in improved collections

Building a Sustainable Financial Aid Scheme ALLOCATIONS 2006 Teacher education ring fenced funds of R63 million is allocated according to proposals from HEI’s

Building a Sustainable Financial Aid Scheme SPENDING HIGHLIGHTS Just over 98% of NSFAS funds are spent in the form of direct awards to students The administrative expenditure (just less than 2%) is kept to a bare minimum and consists of: Salaries41% IT equipment and services9% Postage and Printing26% Auditors and Actuaries5% Communications and Workshops5% Other Expenses14% All procurement is conducted in accordance with Treasury Regulations

Building a Sustainable Financial Aid Scheme STRATEGIC GOALS To provide access to higher education for financially needy South Africans who are academically able, in support of the country’s HRD strategy, while making a contribution to the alleviation of poverty. To raise sufficient funding to enable NSFAS to realise its strategic goals and objectives. To confirm a new allocations formula that is in line with the new higher education transformation framework, for the equitable distribution of funds, in allocating funding in a satisfactory manner. To communicate NSFAS effectively with all its audiences, seeking to make NSFAS the funder of choice.

Building a Sustainable Financial Aid Scheme STRATEGIC GOALS To provide effective and efficient Human Resource management and administration ensure that staff are competent to execute and support the NSFAS Strategy; and are managed in accordance with best current practices. To provide effective and efficient Human Resource management and administration ensure that staff are competent to execute and support the NSFAS Strategy; and are managed in accordance with best current practices.. To implement e-business strategies to enhance collaboration with higher education institutions, thereby increasing the efficiency of the Scheme. To ensure the effective governance, management and administration of NSFAS.

Building a Sustainable Financial Aid Scheme BOARDS ROLE IN ADVISING THE MINISTER One of the functions of NSFAS is to advise the Minister on matters relating to student financial aid [Section 4(f) of the NSFAS Act]. Current areas of investigation in this regard: Review of Allocation Formula Incentives for Completion of Studies in Minimum Period of Study Minimum Criteria to be met for Continued Support from NSFAS Targeting of Scarce Skills

Building a Sustainable Financial Aid Scheme SOME AREAS OF FOCUS Increased electronic interface with institutions including the use of electronic Loan Agreement Form Envisaged reduction in Age of Majority Improved communication with institutions, particularly with VC’s regarding audit findings Compliance in respect of a forthcoming new National Credit Act Reach out to South African private sector and other funders Continued focus on reaching all prospective and deserving students