Pretoria – Higher Education Minister Professor Blade Nzimande on Sunday announced the implementation of the first phase of the comprehensive student funding model that includes the “missing middle”.
Until now the “missing middle” has not been supported by the National Financial Aid Scheme (NSFAS) bursary and funding policy.
“Today I am pleased to stand before you to indicate that we are now ready to implement the first phase of the Comprehensive Student Funding Model, which will ensure that the missing middle students will now be able to access financial support from government in a form of a loan to pursue their studies,” Minister Nzimande told reporters.
This category of students – described as the missing middle – are those who come from families with a total income of more than R350 000, but not more than R600 000 per year.
“Today I am pleased to announce yet another important milestone in the commitments of the ANC-led government to advance a better life for all as we celebrate 30 years of freedom,” the higher education minister said.
“This loan scheme will be administered by NSFAS which has the legal mandate to offer student loans as per Section 4 of NSFAS Act 1999. In order to implement the loan scheme, NSFAS will evoke Section 19 of the NSFAS Act.”
The minister said the government has committed the initial capitalisation fund totalling R3.8 billion to support the loan scheme in 2024.
Professor Nzimande said this amount comprises R1.5 billion from the National Skills Fund and R2.3 billion from Sector Education and Training Authorities.
“This amount will fund 47% of the missing middle students, that is, 31 884 of the estimated 68 446 missing middle students,” explained the minister.
To qualify for the loan, students should meet the following criteria:
- Students whose annual household income is between R350 000-R600 000;
- TVET and University (public) students;
- Undergraduate or postgraduate students;
- 70% Science, technology, engineering and mathematics (STEM) programmes (which may be adjusted to include commercial programmes that are in demand in the labour market or entrepreneurial programmes);
- 30% Humanities programmes; and
- Students willing to sign a loan agreement.
Conditionalities:
- Students can apply for the loan in Years 1, 2,3, etc. To continue to be funded through the loan. Students are expected to get a 60% pass rate (average);
- Students will be supported with tuition, learning material, and accommodation;
- Students who obtain 70% or above on average and within the prescribed time will get a 50% reduction on loans on request.
In another development related to allegations of kickbacks, which he denies, Minister Nzimande said: “In light of the Chairperson of NSFAS having taken leave of absence, I have appointed Professor [Lourens] Van Staden, the former vice chancellor of the Tshwane University of Technology as an Acting Chairperson of NSFAS with immediate effect”.
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“I have already had a briefing session with him emphasising the importance of NSFAS to prioritise readiness for the beginning of the 2024 academic year.
“The acting chairperson will also prioritise the employment of a new CEO and fully implement the Werksmans report that was commissioned by NSFAS.”
