The National Student Financial Aid Scheme (NSFAS) will spend approximately R50 billion during the current financial year to fulfil its mission and ensure students can attend institutions of higher learning. The amount of money spent on student funding is forecasted to continue increasing in the coming years.
The Department of Higher Education and Training (DHET) acknowledged that in previous years, there was uncertainty regarding the funding of students due to budget shortfalls. However, this would not be the case in 2023 and the budgetary allocation received by NSFAS would ensure that all qualifying students would receive funding.
NSFAS provides comprehensive bursaries to students that are financially and academically eligible for funding. These students come from poor and working-class backgrounds and are enrolled in approved academic programmes at public universities and Technical and Vocational Education and Training (TVET) colleges.
Students who receive the NSFAS bursary receive several allowances in addition to their tuition and registration fees. These allowances include a learning material allowance, a living material allowance and an accommodation allowance.
NSFAS received R49,9 billion to fund deserving students. The financial aid scheme has revealed that approximately 25% of their budget was spent during the first five months of the year.
In 2023 NSFAS will spend R38,6 billion on funding for university students. As of 5 May 2023, the fund had spent R9,2 billion on universities. This includes upfront payments of approximately R3,5 billion made to institutions to ensure a smooth start to the 2023 academic year.
NSFAS is in a position to provide upfront payments to institutions, to allow for the payment of allowances, minimise the financial impact to institutions due to the fact that NSFAS beneficiaries are not required to pay registration data, this will assist institutions in particular HDIs and TVET colleges.
NSFAS spent R6.2 billion in April 2023 on university student funding. This is the first of four payment tranches with the remaining payments set to be made in June, August, and October.
This indicates that NSFAS utilised 23.97% of their budget for university student funding. Their allocation balance for university student funding is R29,4 billion for the current academic year.
NSFAS utilised 24.83% of the budgetary allocation for TVET college students as they spent R2,2 billion by 5 May 2023. This includes spending R1,2 billion in April 2023 on the first payment tranche.
The financial aid scheme spent R580 million, R47 million and R344 million in January, February and March 2023 on TVET college students respectively.
In 2022, NSFAS spent 96,96% of the R38 billion they received for university student funding. This was considerably higher than the percentage utilised (70% of R7 Billion) used for TVET college student funding.
NSFAS is projected to spend R318 million on salaries, agency fees, consultancy fees, travel and other costs to perform their role. Other costs referred to all the other expenses that NSFAS incurs including office rental, telephone cost and computer services licences.
Consultants include the Auditor-General of South Africa, ICT related consults. The Special Investigation Unit and Legal Services.
