He outlined plans for a new Comprehensive Student Funding Model and highlighted the increased budget allocation for the National Student Financial Aid Scheme.
Nzimande began his 2023 Budget Vote speech by expressing the government's commitment to finalizing a new Comprehensive Student Funding Model based on an in-depth report.
The aim is to submit this model to Cabinet for review before the end of the year. The proposed model aims to support all categories of students, including those currently not covered under the existing NSFAS funding policy.
While announcing the progress made, Nzimande revealed that NSFAS is currently funding 1.1 million students in the 2023 academic year, with a budget allocation of R47.6 billion. This allocation marks a significant milestone, as universities receive R38.6 billion, and TVET Colleges receive R8.9 billion, surpassing the one million mark for the first time.
He emphasized the growth of NSFAS since its establishment in 1991, citing the initial budget of R21.4 million allocated to the first cohort of approximately 7,000 students.
“The exponential increase in funding over the years demonstrates the government's commitment to expanding access to higher education,” Nzimande said.
Highlighting the importance of inclusivity, Nzimande also pointed out that Sassa beneficiaries now account for 49% of the funded students in 2023. Acknowledging the challenges faced by students during the application process, the Minister highlighted the improvements made to the NSFAS student application portal.
“The addition of WhatsApp and USSD functionality enables students to track their applications and receive responses directly, reducing the reliance on call centres.” He added
He also addressed the issue of student accommodation, stating that NSFAS pays for the full cost of study, including tuition and accommodation, limited to R45,000 per annum. This measure aims to curb overcharging by student accommodation service providers.
Notably, NSFAS has opened its accreditation portal to accommodation providers, with 8,196 beds already accredited across the Eastern Cape, Gauteng, and KwaZulu Natal Provinces.
Furthermore, NSFAS provides living allowances of R1,750 per month and personal care funds of R3,045 per academic year for distance students. Additionally, transport allowances of R7,875 are allocated to students not residing in university residences or private accommodations.
On average, each student receives funding amounting to R95,552, excluding Unisa students who receive book allowances due to their distance learning programs.
Minister Nzimande highlighted the introduction of direct payments through the NSFAS bank card for TVET Colleges in the previous year. Additionally, groundwork is underway to extend this system to universities in a phased approach beginning on June 1, 2023.
Overall, the budget for the 2023/24 financial year, amounts to R133.8 billion for the entire sector. This represents an average annual increase of 5.3%.
