Memorandum from the Parliamentary Office
NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION 66
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 20/03/2015
(INTERNAL QUESTION PAPER 8 OF 2015)
Mr HB Groenewald (North West-DA) to ask the Minister of Higher Education
and Training:
What measures will the universities put in place to ensure that the
National Student Financial Aid Scheme funds are administered effectively
and efficiently in future?
CW97E
REPLY:
The National Student Financial Aid Scheme (NSFAS) currently runs a dual
model whereby students either apply for funding to NSFAS through
institutional financial aid offices (Old Model) or directly to NSFAS,
commonly referred to as the New Student Centred Model.
1. Old Model
[pic]
The diagram above highlights the roles between NSFAS and universities that
are not yet in the New Student Centred Model. NSFAS policies and guidelines
are communicated to universities through circulars, particularly with
regards to decisions taken by the Board and the manner in which these
impact on the relationship with institutions. In this model, financial aid
offices of institutions have a major role to play in ensuring that the
system works efficiently and effectively. The steps are described in
further detail below:
a) University receives allocation
One of the critical steps in the administration of funds is the early
confirmation of allocations so that universities can plan for their
intake of new and returning students. To this end, NSFAS confirms
allocations in December of the preceding academic year to all
universities.
b) University receives upfront payment
Noting the delays in the transfer of funds to NSFAS by funders, mainly
due to the misalignment of the academic to the financial years, NSFAS
invites universities in need to apply for an upfront payment of their
allocation. Upon receipt of such request, NSFAS transfers a portion of
the institutional allocation from its own recovered funds. Universities
administer these funds and ensure that students receive their tuition,
accommodation and associated allowances. This is done in cognisance of
the adverse impact on students while waiting for the flow of funds at the
beginning of each financial year, which is 01 April. For the first 3
months, most institutions are dependent on NSFAS recovered funds to fund
and support their students.
c) University awards loans
Universities apply the NSFAS updated guidelines and policies in the award
of loans and bursaries to qualifying students. Qualifying loans and
bursaries are quality assured by NSFAS prior to the confirmation of the
disbursement of funds.
d) University submits claims to NSFAS
Universities submit claims to NSFAS for final checking and payment. NSFAS
has developed tools and instruments to streamline and standardise the
manner in which information is gathered, submitted and reported by
universities. This has ensured that there are fewer opportunities for
errors and attendant issues affecting quality of reporting.
Universities are provided with guidelines in December of the preceding
year so that claims to NSFAS are submitted and payments are timeously
made.
2. New Student Centred Model
The new model significantly shifts the responsibility of administering
funding from universities to NSFAS. However, universities continue to be
critical partners and role-players in the overall administration of
funding.
[pic]
The new model reduces the role of universities to the critical step of
facilitating registration of new and returning students. Universities are
assisted during registration through:
1. Students applying once for funding
Students in the new model apply only once and their funding is
sustained in subsequent years for as long as they meet academic
requirements for promotion from one year to the next, easing the
administrative burden on institutions.
2. Learner Results
University funding decisions are aided by the ability of NSFAS to
obtain results of Grade 12 learners directly from the Department
of Basic Education, allowing a speedy determination of students
qualifying for financial assistance.
3. Placement of NSFAS resources in institutions that are on the New
Student Centred Model
In an effort to provide timely support to students and informed by
need, NSFAS places human resources at institutions to assist with
pressing needs of students as part of the assistance provided to
institutions during the registration period.
4. Communication engagement Plan to support registration
The student registration period is a very demanding time for both
students and institutions. Universities receive support during the
registration period through teams deployed in regions across the
provinces in order to attend to challenges experienced, as well as to
serve as the link between institutions and the NSFAS head office.
In November 2014, I met with NSFAS, Higher Education South Africa (HESA)
and University Vice-Chancellors to discuss ways of ensuring that NSFAS is
managed more effectively, both in terms of administering the old model and
the responsibilities of universities and NSFAS with respect to this, as
well as dealing with the implementation of the new model which required
certain challenges to be addressed. The Department is working with NSFAS
and universities through HESA to support a more effective implementation of
NSFAS while the dual system continues to operate. It is envisaged that once
the new model is fully phased in and implemented, many of the current
challenges will be resolved.
Compiler/contact persons:
Ext:
DIRECTOR â GENERAL
STATUS:
DATE:
REPLY TO QUESTION 66 APPROVED/NOT APPROVED/AMENDED
Dr B NZIMANDE, MP
MINISTER OF HIGHER EDUCATION AND TRAINING
STATUS:
DATE: