Building a Sustainable Financial Aid Scheme NSFAS ANNUAL REPORT National Assembly Portfolio Committee on Education November National Student Financial Aid Scheme (NSFAS)

NATIONAL STUDENT FINANCIAL AID SCHEME NSFAS was established in 1999 as a public entity, under the Ministry of Education, by an act of Parliament (Act 56 of 1999) 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 Results for 2005/ New GrantsR 954.8mR724.5m Re-injected fundsR265.9mR250.5m Loans AwardedR mR985.5m Admin ExpensesR21.5mR17.3m Bursary AwardsR376.3mR302.6m No of courses passed75.6%74.3%

Building a Sustainable Financial Aid Scheme NSFAS IN A NUTSHELL Results for 2005/2006 (continued) No students assisted Average Award sizeR R9 973 Loans RepaidR329.4mR245.4m During 2005/2006: The one millionth loan was issued The one billionth Rand was recovered The number of students assisted per annum exceeded for the first time

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 In order to qualify for assistance a person must be: South African citizen, registered at public South African Higher Education Institutions, studying for a first higher education (undergraduate) qualification and who is able to demonstrate potential for academic success and is financial needy as determined by the NSFAS National Means Test.

RECOVERIES Building a Sustainable Financial Aid Scheme

Annual Awards since 1991

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% of the total budget) 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 the PFMA and 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 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 including:

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 (Childrens Act) Improved communication with institutions, particularly with VC’s regarding audit findings Compliance in respect of the new National Credit Act Reach out to South African private sector and other funders Continued focus on reaching all prospective and deserving students New funding intiatives and partnerships

Building a Sustainable Financial Aid Scheme Thank you