Fentse Malatji, Digital Strategist at Youth Capital, argues that the challenges facing the National Student Financial Aid Scheme (NSFAS) hinder the country's ability to address inequality. Malatji highlighted the alarming statistic that over 40% of first-year students may not complete their degrees, with financial exclusion being a significant factor.
NSFAS, which works to alleviate financial strain for disadvantaged students by offering comprehensive bursaries and student loans, has been criticised for operational and communication issues, leading to further student difficulties.
What we've seen over the years is that NSFAS is in the news for all the wrong reasons. Our country is missing out on a crucial opportunity to close the inequality gap,
Malatiji explains that obtaining a tertiary education qualification drastically increases the likelihood of a young person finding work. This makes it imperative that NSFAS executes its mandate.
"If you do have a tertiary education or post-school qualification the likelihood of you being absorbed into the labour market is drastically increased."
Malatji also pointed out that students who leave the education system often struggle to return, which has severe implications for their future employment prospects.
We found that once someone leaves the school system, it's very difficult for them to come back. Without a degree, the likelihood of being absorbed into the labour market is drastically reduced.
NSFAS Board Needs Young People
Freeman Nomvalo was appointed as NSFAS administrator in April 2024 by former Higher Education Minister Blade Nzimande following the dissolution of the NSFAS board. At the time, Nzimande placed NSFAS under administration after it failed to pay student allowances.
Several other factors led to the appointment of administrator Nomvalo including lack of institutional capacity and the board's failure to implement the recommendation of the Werksmans Report. Nomvalo’s term as administrator is set to conclude upon the formation of a new board at the government bursary scheme.
Youth Capital is advocating for systemic changes, including the inclusion of young people in decision-making processes.
The new NSFAS board must include young people who understand these challenges firsthand. It's a great opportunity for young people to be at the table where decisions are being made
Malatji called for collaborative efforts among civil society, government, and businesses to address these issues and emphasised the importance of involving young people in decision-making processes, such as appointing them to the NSFAS board.
Youth Capital advocates for more inclusive and research-backed policies to tackle the barriers to education and employment for South Africa's youth.
