Over 50,000 people, many of whom are university students have signed a petition, pleading to the National Student Financial Aid Scheme (NSFAS) to increase their monthly allowances.
Recently, data from Statistics South Africa showed consumer inflation at 7,8%, reaching its highest rate in 13 years which meant that costs would increase further.
It is important to note that these costs increase against fixed student allowance amounts, which leaves most students with very limited resources to cover their monthly expenses.
Students have expressed that the hikes in prices for individual goods and services have left them unable to cover their most basic needs like groceries or toiletries.
In June 2021, The Minister of Higher Education, Science and Innovation, Blade Nzimande appointed a Ministerial Task Team (MTT), that aims to assist the Department, NSFAS and National Treasury as part of the medium-term budget discussions in preparation for the 2022/23 Medium-Term Expenditure Framework (MTEF) process.
Many have questioned whether, according to the Ministerial Task Team report, allowances for National Student Financial Aid Scheme will be increased to support the increase in prices for goods and services.
In response, Nzimande explained that the model used the inflation estimates outlined in the 2022/23 MTEF Guidelines sent out by the National Treasury.
“This resulted in the shortfall for 2022/23 being addressed in the 2022/23 budget vote, with reprioritisation from across government, as well as an additional amount required from the Department’s budget.” he adds.
According to the MTEF, allocations to NSFAS for baseline university allocations for the 2022/23 academic year stand at R37 151 442 and R1 207 665 for reprioritisation universities, bringing the university subtotal to R 38 359 107.
Nzimande says that the discussion on whether allowances can be changed and increased is dependent on funding available and anticipated costs for 2023.
