The South African government has announced a new NSFAS funding model to support students from families with an annual income between R350,000 and R600,000 who are not currently eligible for financial aid from the National Financial Aid Scheme (NSFAS). This new NSFAS funding model for the “missing middle” families is designed to address the gap in financial support for students from these families, who often struggle to afford the costs of higher education.
This announcement was made at a press briefing held on the 14th of January 2023 by Higher Education, Science, and Innovation Minister, Professor Blade Nzimande.
New NSFAS Funding Model: A Two-Phase Approach
The government will provide R3,8 billion to fund the first phase of the program, which will begin this year.
“This amount will fund 47% of the missing middle students, that is, 31,884 of the estimated 68,446 missing middle. We have also committed funds to revive NSFAS ICT [information and communications technology] systems, including the loan system,” he said at the conference held in Pretoria.
The department will be working hard to ensure that the second phase will be implemented from next year to 2034, with the government increasing its contribution from R31,6 billion to R42,1 billion.
He said, “Together with the National Treasury, we will continue to engage with relevant institutions, including public and private financial institutions to expand the scheme.”
Application Requirements for the Loan
To qualify for the new NSFAS funding model loan, candidates must meet the following criteria:
- Learners whose annual household income is between R350 000 to R600 000.
- Technical Vocational Education and Training (TVET) and public university 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.
- Learners who are willing to sign a loan agreement.
- Learners who can apply for the loan in the first, second, or third year to continue to be funded through the loan.
- Candidates are expected to get an average of 60% pass rate and the loan will cover 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.
The new “missing middle” loan scheme will be administered by NSFAS which has the legal mandate to offer student loans as per Section 4 of NSFAS Act 1999.
(Was your NSFAS application rejected, read here for information about the appeals process)
Conclusion
The announcement of the new NSFAS funding model has been welcomed by many, who see it as a much-needed step towards making higher education more accessible to all South Africans. Between 2019 and 2022, NSFAS has paid R123 billion across 2 918 624 beneficiaries. However, some critics have expressed concerns about the eligibility criteria, arguing that it could exclude students from other disciplines who are also in need of financial support.
The government has said that it is committed to ensuring that all students have access to quality education and that the new NSFAS funding model is one step closer to achieving this goal.
