DA Wants To Reform NSFAS And Introduce Loan Scheme


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More than one million students are currently benefitting from NSFAS bursaries to cover the costs associated with getting a degree. Student unions are concerned that a proposal from a political party could change the way NSFAS funds students. 


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Following the recent elections, African National Congress (ANC) President Cyril Ramaphosa called for a Government of National Unity (GNU).

Ten parties have joined the GNU, including the ANC, DA, Patriotic Alliance, Inkatha Freedom Party, GOOD, Pan Africanist Congress of Azania, Vryheidsfront Plus, United Democratic Movement, Rise Mzansi, and Al Jama-ah. These parties bring diverse policy positions, likely leading to negotiations and compromises.

After these parties signed up to the GNU, Ramaphosa was tasked with assembling a cabinet of ministers. In his Cabinet announcement speech last week, the President acknowledged that he had previously said the Cabinet should be shrunk to be more manageable and cost-effective.

However, the announcement saw the President present an even larger cabinet than ever before.

The new national executive, consisting of 75 ministers and their deputies, includes representation from eleven parties in the coalition government. This is the largest cabinet in South Africa's history, surpassing the previous record of 72 ministers and deputies under then-president Jacob Zuma ten years ago.

The Economic Freedom Fighters (EFF) Student Command criticised Ramaphosa’s cabinet, labeling it a betrayal of good governance principles. They condemned the reappointment of Blade Nzimande, citing his previous tenure's failures in improving the Higher Education sector.

According to the EFF Student Command, Nzimande's previous term was marked by an inability to address financial barriers in higher education, as well as mismanagement and inefficiencies within NSFAS. These issues, they argue, have entrenched structural inaccessibility for many students in South Africa.

Dr. Blade Nzimande failed to adequately address the financial barriers, further entrenching the structural inaccessibility of Higher Education in South Africa.

The EFF Student Command believes this partnership between the ANC and DA will negatively impact students, pointing to the DA's opposition to several transformative and pro-poor policies in higher education.

The unholy Grand Coalition of the ANC and the DA is going to be felt most by the students of South Africa. The DA has made it very clear, on many public appearances, that it does not agree with the many transformative and pro-poor policies in Higher Education.

They criticised the DA's proposals to scrap NSFAS and introduce a loan scheme, which they argue will burden students with debt and increase economic dependency. They believe this will result in the financial services sector preying on the poor and locking them in a lifetime of debt and economic dependency.

The DA's proposed NSFAS funding model emphasises a tiered system of loans and grants to support low-income students. It aims for sustainability by offering government loans with favorable repayment terms, ensuring funds are replenished for future students.

DA's NSFAS Proposals

  • Support for the Missing Middle: The model offers proportional assistance to students who can partially fund their education, bridging the gap between fully funded and self-funded students.
  • Scholarships for High Achievers: Non-repayable scholarships are provided to outstanding students, encouraging academic excellence.
  • Performance-Based Conversion: Loans may be converted into bursaries based on academic performance, incentivising students to maintain high academic standards.
  • Means-Tested Tuition: The proposal suggests that those who can afford tuition should not receive free education, ensuring resources are allocated to those in greater need.
  • Accommodation Funding: The DA advocates for the removal of the blanket accommodation cap, allowing for more flexible and realistic housing support.
  • Private Sector Collaboration: The DA plans to work with the private sector to enhance access to funding through bank loans and sponsored scholarships.

While the DA is represented in the National Executive, the party will only have a deputy minister within the DHET. The president appointed Dr. Nobuhle Nkabane, formerly the deputy minister of Mineral Resources and Energy, as the Minister of Higher Education.

Nkabane will be supported by Deputy Minister Buti Manamela of the ANC and Mimmy Gondwe of the DA.

Suggested Article:

NSFAS paying allowances

The ANC Youth League will reject any proposals from political parties to reform NSFAS. This comes as the DA proposed changes to how NSFAS funding works earlier this year. 
 



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