National Student Financial Aid Scheme: Budget Plan 2014/15 Presentation

1. National Student Financial Aid SchemePresentation to the Portfolio Committee on Higher Education and Training Budget and Annual Performance Plan 2014/15

2. Presentation Overview • Introduction • NSFAS mandate and background • Vision, mission, values, partners • Strategic focus • Student-centred model • Annual Performance Plan and Budget 2014/2015 • Strategic goal and plan • Overview of Programmes • Programme strategic objectives, performance indicators, targets and associated budget • Budget

3. About NSFAS NSFAS is a public entity reporting to the Department of Higher Education and Training, governed by the NSFAS Act (56 of 1999) • Since inception in 1991, NSFAS has disbursed more than R 41,5 billion in loans and bursaries to 1,4 million students • In 2013, NSFAS disbursed R8,7 billion to 416 000 students at the 23 public universities and 50 public Technical and Vocational Education and Training (TVET) colleges throughout the country • In 2012 , NSFAS disbursed R7,7bn to 383 000 students

4. NSFAS Mandate • to develop criteria and conditions for the granting of loans and bursaries to eligible students in consultation with the Minister • to raise funds • to allocate funds for loans and bursaries to eligible students • to recover loans • to maintain and analyse a database and undertake research for the better utilisation of financial resources • to advise the Minister on matters relating to student financial aid • to perform other functions assigned to it by the NSFAS Act (56 of 1999) or by the Minister

5. NSFAS Vision, Mission and Values Vision NSFAS is a model public entity that provides financial aid to all eligible public university and TVET college students from poor and working class families. Mission The mission statement is made up of three distinct elements which describe why NSFAS exists, what we do, and the impact on our constituency: • NSFAS exists to provide financial aid to eligible students at public TVET colleges and public universities. • NSFAS identifies eligible students, provides loans and bursaries and collects student loan repayments to replenish the funds available for future generations of students. • NSFAS supports access to, and success in, higher education and training for students from poor and working class families who would otherwise not be able to afford to study. Values Our external values are: Accessibility, Transparency, Affordability, Reliability Our internal values are: Integrity, Accountability, Respect, Innovation

6. Partners • Department of Higher Education and Training • National Skills Fund • Sector Education and Training Authorities • Department of Agriculture, Forestry and Fisheries • Department of Basic Education • Department of Social Development • Eastern Cape and KwaZulu-Natal Provincial Governments • Non‑governmental Organisations • 26 Universities and • 50 TVET Colleges

7. Strategic focus • In 2012, Parliament approved a transformation programme to introduce a new student-centred model for financial aid. • In the past NSFAS had no relationship with students • Students had contact with NSFAS only when they became debtors and had to repay their student loans • In 2013, we introduced new systems to receive applications; manage loans and bursaries; distribute funds to institutions and students; recover loans • Student-centred model pilot phase started in 2014 • We are positioned to manage more bursaries on behalf of public sector institutions; and will focus on increasing collections and raising funds • Despite a threefold increase in funds for financial aid during the previous Parliament, we can still assist only half of the students eligible for study loans and bursaries.

8. Student-centred model In the new student-centred model: • Funding is provided for a qualification, not one year of study at a time • Students apply once, in the first year of their studies • The financial means test is automated and linked to other government databases to verify personal, family, income and employment data • Tuition and residence fees are paid to the university or college • Allowances for books, food, private accommodation, transport, electronic and assistive devices are paid directly to students, ensuring that spending can be monitored and accounted for.

9. National Student Financial Aid Scheme Strategic Objectives

10. NSFAS Strategic goals Goal 1 • An efficient and effective public entity in student financial aid and administration Goal 2 • Access, success and progression to contribute to improving both throughput and pass rate Goal 3 • Improved student financial aid environment • Last year of implementation of 5 year strategy

11. Strategic Plan Overview Programme One: Administration Purpose: To conduct the overall management of the entity and to provide efficient and effective support services to internal departments Budget: R 102 374 million

12. Strategic Plan Overview Programme Two: Student-Centred Financial Aid Purpose: To achieve the vision and mission of NSFAS by creating a centralised student financial aid system and to provide funding to eligible students whilst maximising recoveries and striving to increase the pool of funds available. Budget: R 48 944 million Funding Sources for Total Budget of R 151 318 million DHET Administration Grant R 116 200 millionBusiness Transformation Budget R 7 483 million Administration FeesR 27 635 million

13. Programme 1: Administration

14. Programme 1: Administration

15. Programme 1: Administration

16. Programme 1: Administration

17. Programme 1: Administration

18. Programme 2: Student-centred financial aid

19. Programme 2: Student-centred financial aid

20. Loans and Bursaries Budget

21. Budget Overview

22. The doors of learning and culture shall be opened! Freedom Charter, 1955