On Thursday morning, it was announced that Cabinet has approved additional funding which will be used by NSFAS to fund first time entering students.
Acting Minister in The Presidency, Khumbudzo Ntshavheni announced:
Cabinet has approved additional funding ... Cabinet has directed that further work must be done to find a more sustainable approach to fund students for their tertiary education. Cabinet remains committed to ensuring that all deserving students are not excluded due to lack of funding.
Higher Education Minister, Blade Nzimande, said in a previous briefing that NSFAS is experiencing a shortfall and these challenges have delayed the finalisation of the registration of the first year university students.
All qualifying NSFAS students will be funded but the Minister did not make it clear where this money will be coming from, only that they are re-allocating funds from within the department.
No additional funds were made available to the Department of Higher Education and Training so the money made available to pay student fees will have to be taken from other projects with the DHET.
NSFAS has not been able to communicate funding decisions to prospective students as they cannot promise funding when the funds weren't confirmed.
The extended academic year, which lead to extended allowances being disbursed, the number of students qualifying for funding increasing, due to parents losing their jobs as a result of lockdown, are said to be behind the shortfall.
Minister Blade Nzimande said:
NSFAS will be able to release funding and the registration process at public Universities can indeed now continue as planned. No NSFAS qualify students have been affected by these delays as Universities have agreed to extend registration periods.
When asked on why this issue was brought up and resolved so late, the Minister responded with saying that they only received the final costs recently. They knew there would be additional costs but only knew about the exact amount within the last few weeks.
Registration is extended until the end of next week
The Department will also be finalising the funding guidelines for the NSFAS bursary and will be released to institutions as soon as possible. The changes are said to be kept to a minimum.
Government and Universities are said to be worried when it comes to the issue of student debt in the country and this will be addressed through the policy review.
Universities have already made arrangements with students who are struggling to pay for their fees.
The Minister also announced that students who are struggling to register for their final year and have done well, will have arrangements made.
Government is also looking at further ways to support missing middle students.
Nzimande was briefing the media on Cabinet's decision on the issue of NSFAS facing a shortfall on its funding for 2021 and therefore not having adequate funding available for first time entering students.
NSFAS CEO, Andile Nongogo, along with the Chairperson of the NSFAS board and the Director-General of Higher Education, Gwebs Qonde, were present as well.
Ntshavheni was briefing media on the outcomes of the Cabinet meeting held on Wednesday.
