R967-million to clear student debt
Higher Education Minister Naledi Pandor said the allocation is specifically earmarked for those who had been funded by NSFAS before
MORE than 52 000 students will benefit from R967-million which has been allocated to the National Student Financial Aid Scheme (NSFAS) to settle historic debt owed to universities.
The funding was set aside by the Department of Higher Education and Training (DHET) to assist NSFAS qualifying students who are continuing their studies this year.
Higher Education Minister Naledi Pandor said the allocation is specifically earmarked for those who had been funded by NSFAS before.
‘This is a significant contribution which will alleviate some of the debt owed to universities and a confirmation that government is sensitive to the plight of students from poor and working-class families,’ said Pandor.
Historic debt is money owed to universities by continuing NSFAS qualifying senior students who were registered in the 2018 academic year, funded by the scheme according to the policy of supporting students from families with an income threshold of R122 000 per annum, and meeting academic criteria to enable them to graduate within a minimum of two years.
These students were required to fund part of their costs through family or own funding, but were not able to do so, hence the debt.
According to the new scheme, however, poor and working-class students are supported through an expanded bursary scheme, which replaces the previous loan and partial bursary scheme.
The minister said this was the first phase of the assessment of historical debt owed to universities.
‘We are aware that there will be some students who entered the university system prior to the new scheme being implemented in 2018 who will continue to be funded through NSFAS on the pre-2018 funding model.
‘These students would have accrued further debt during the 2018 academic year if their fees were above the NSFAS cap.
‘To address this, the department plans to provide funding to NSFAS during the 2019 academic year to clear this debt,’ Pandor said.
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