Manamela promises to overhaul NSFAS funding model
Image: Ayanda Ndamane / Independent Newspapers
Higher Education Minister Buti Manamela has announced an urgent overhaul of the National Student Financial Aid Scheme (NSFAS) funding model.
The Minister outlined the department's vision during a media briefing in Pretoria for the post-school education sector and emphasised that stabilising NSFAS is a top priority in the government's education reform plan.
The new model is expected to be developed within the next three months.
South Africa is experiencing a surge in demand for built student accommodation, with a significant shortfall of over 500 000 beds needing to be addressed in the sector.
Image: Paballo Thekiso
The decision to implement these changes comes after widespread concerns about governance, delivery failures, and funding gaps at NSFAS. Manamela acknowledged that "there's been fundamental challenges at NSFAS" but also highlighted that 800 000 students have currently received their allowances.
To address the pressing issues, several actions are being taken. The Minister has instructed the CEO and Chairperson of NSFAS to convene an urgent briefing to inform the nation, especially students, on the current state of NSFAS and the challenges it faces.
Engagements with Treasury have already begun to fill existing gaps in student funding.
A Post-School Education and Training task team will be established to lead the broader overhaul of the post-school education system.
"In the next three months, we will stabilise the National Student Financial Aid scheme and set in motion a sustainable student funding model," Manamela said.
Additionally, an extensive briefing detailing these plans will be held in early September.
Last week, reports emerged that NSFAS' student accommodation management processes and the involvement of third-party partners were under a comprehensive legal review.
The student financier said it is currently awaiting the outcome of this review and will implement the recommendations to enhance transparency, integrity, and efficiency in its payment processes.
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