NSFAS Budget Cuts Threaten Funding for Over 87,000 University Students in 2024. During a recent briefing to the Parliamentary Portfolio Committee on Higher Education, the National Student Financial Aid Scheme (NSFAS) provided alarming projections of potential budget cuts that could leave over 87,000 university students without funding by 2024.
The Impact of Budget Cuts on Student Funding:
NSFAS’ acting CEO, Masile Ramorwesi, explained the potential consequences of reducing university funding by 10% in the National Treasury’s Medium Term Budget Policy Statement (MTBPS). Ramorwesi says this reduction could leave 87,712 students unfunded in the 2024 academic period, and 120,976 students unfunded in the 2024/25 academic year.
Current Application Landscape:
The deadline for funding applications is January 31, and NSFAS has already received 205,752 applications, highlighting the urgency of addressing the looming funding crisis as soon as possible.
Projected Budgets and Shortfalls:
The NSFAS estimates that universities will have a budget of R41.9 billion and R43.7 billion in 2024/25 and 2025/26, respectively. As a result of the 10% budget cut, it is expected that there will be a shortfall of R5.5 billion in 2024/25 and R8.1 billion in 2025/26. The technical vocational education and training (TVET) colleges face budget cuts of R970-million in 2024/25 and R1 billion in 2025/26, respectively.
Risks and Concerns:
Due to reduced funding for headcounts, Ramorwesi highlighted potential risks, such as increased student protests. Additionally, insufficient bridging finance options may impact the timely disbursement of allowances, affecting students at the beginning of the financial year.
NSFAS Woes and Criticisms:
It has been criticized for ongoing problems, including the direct payment system, by MPs. In a probe conducted by Werkmans Attorneys and advocate Tembeka Ngcukaitobi, among the recommendations were the termination of the former CEO’s contract and the termination of contracts with direct payment service providers responsibly.
Concerns from Tertiary Institutions:
University South Africa (USAF) and SAPCO CEOs expressed concerns about NSFAS’ ability to manage student accommodation allocations and the R45,000 accommodation cap introduced earlier, which left students in debt. The outstanding accommodation fees at tertiary institutions are impacting student registration in 2024.
Student Perspectives and Appeals:
A clear understanding of direct payments and the companies that facilitate them is essential, according to Lukhanyo Daweti, Secretary-General of the South African Union of Students. In order to avoid delays until the end of January, he suggested that rejected students be notified promptly so they can prepare for appeals.
Conclusion:
As NSFAS faces the challenges of budget cuts, potential student protests, and operational issues, urgent and strategic interventions are crucial to safeguard the education of over 87,000 university students. The collaborative efforts of NSFAS, government entities, and tertiary institutions are essential in navigating these turbulent times and ensuring accessible education for all.
