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NATIONAL STUDENT FINANCIAL AID SCHEME

The National Student Financial Aid Scheme (NSFAS) was established in 1999 to provide loans and bursaries to eligible students at public higher education institutions. The main focus of NSFAS is to ensure equal access and representivity, respond to human resource development needs, and establish an affordable and sustainable financial aid scheme. This text outlines the goals, expenditures, allocations, and strategic focus areas of NSFAS.

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NATIONAL STUDENT FINANCIAL AID SCHEME

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  1. NATIONAL STUDENT FINANCIAL AID SCHEME NSFAS was established in 1999 as a public entity by an act of Parliament to provide for thegranting of loans and bursaries to eligible students at public higher educationinstitutions and for the administration of suchloans and bursaries; and to provide forthe recovery of loans.

  2. MAIN FOCUS OF NSFAS Building a Sustainable Financial Aid Scheme • The main focus of NSFAS as contained on the preamble to the NSFAS Act is: • to redress past discrimination and ensure representivity and equal access; • to respond to human resource development needs of the nation; and • to establish an expanded national student financial aid scheme that is affordable and sustainable.

  3. NSFAS IN A NUTSHELL Building a Sustainable Financial Aid Scheme In addition, in 2007 we are expecting to assist up to 20 000 students at FET colleges with bursaries of approx R5 000 each totalling R100 million.

  4. EXPENDITURE SUMMARY Building a Sustainable Financial Aid Scheme

  5. KEY PARAMETERS Building a Sustainable Financial Aid Scheme Core Award Scheme * * Interest rate to be linked to Repo Rate in future

  6. RECOVERIES Building a Sustainable Financial Aid Scheme Monthly Example NSFAS continues to implement improved loan recovery strategies resulting in improved collections

  7. ALLOCATIONS 2007 Building a Sustainable Financial Aid Scheme Additional teacher education ring fenced funds of R66 million is allocated according to proposals from HEI’s

  8. SPENDING HIGHLIGHTS Building a Sustainable Financial Aid Scheme • Just over 98% of NSFAS funds are spent in the form of direct awards to students. • The balance is administrative expenditure of R25.4 million (just less than 2%) and is kept to a bare minimum consisting of:  • Salaries 45%  (0.7% of total exp) • Postage and Printing 19% •   Auditors and Actuaries 9%  • Communications and Workshops 7% • IT equipment and services 6%  •   Other Expenses * 14% • (* building maintenance, legal, travel etc) All procurement is conducted in accordance with Treasury Regulations.

  9. STRATEGIC GOALS Building a Sustainable Financial Aid Scheme GOAL 1: To ensure effective governance, management and administration of NSFAS GOAL 2: To ensure effective management and investment of NSFAS funds GOAL 3: To provide effective and efficient Human Resource Management and Administration to ensure that staff are competent to execute and support the NSFAS Strategy; and are managed in accordance with best current practices.

  10. STRATEGIC GOALS Building a Sustainable Financial Aid Scheme GOAL 4: To provide a high level of information technology infrastructure and to provide IT services and related electronic solutions ensuring improved efficiency and communication. GOAL 5: To ensure the efficient and effective functioning of Awards Administration. GOAL 6: To ensure compliance by financial aid offices (FAOs) with NSFAS rules and requirements. GOAL 7: To ensure compliance with the National Credit Act (NCA) and review NSFAS Act

  11. STRATEGIC GOALS Building a Sustainable Financial Aid Scheme GOAL 8: To Increase Collections through improved strategies and processes GOAL 9: To enhance the organisational visibility among the stakeholder communities GOAL 10: To provide research mechanisms into the parameters and operations of the scheme GOAL 11: To provide effective and efficient office administration services ensuring timely supply of resources and equipment in support of the NSFAS Strategy; and are managed in accordance with best current practices.

  12. SOME AREAS OF FOCUS • Expansion of Scheme to FET Colleges • FUNDISA Fund • Increased management of institutional loans • Compliance in respect of new National Credit Act • Reach out to South African private sector (also banking sector) • Continued focus on reaching all prospective and deserving students • Management of new programmes on behalf of Government departments • Delayed reduction in Age of Majority (implementation of Children’s Act) Building a Sustainable Financial Aid Scheme

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