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Blade Nzimande

The Department of Higher Education could soon instruct the National Student Financial Aid Scheme (NSFAS) to stop deducting money from past beneficiaries of the scheme without their consent.

Currently past students who owe NSFAS and who are now working are having their salaries deducted by employers without their consent and the money is paid straight to the scheme.

But a ministerial committee tasked to review NSFAS on Tuesday released its much-awaited report that is set to bring drastic changes in student funding. It also demands NSFAS to remove all students it has black listed on credit bureaus.

The committee, led by professor Marcus Balintulo has also recommended changes to the policy, regulations and operational framework of the NSFAS to allow the scheme to absorb more needy student who wished to further their education.

It says the Minister of Education Blade Nzimande should on constitutional, legal and moral grounds instruct NSFAS to immediately stop all loan recoveries from past students without their consent and refrain from using this method in its dept recovery practice.

NSFAS is a state-funded initiative formed in 2000 to assist financially needy students enter institutions of higher education.

The scheme replaced Tertiary Education Funds of South Africa (TEFSA) which was formed in 1991.In 2005, the scheme awarded R1.2 billion to financially needy students who wished to further their studies.

The committee, which spent more than eight months reviewing the scheme, has further recommended the investigating the introduction of a constitutionally compliant section of the NSFAS Act to enable NSFAS to recover loan repayments directly through the taxation system.

It wants government to revalue the NSFAS loan book to assess the accuracy of the R10 billion valuation and that the revaluations should be done timeously to allow the minister to report any adjustment to parliament prior to the financial year end.


“The committee also recommends that NSFAS should not blacklist students with credit bureaus and should remove the names of all students currently black listed with the TransUnion ITC credit bureau and or any other credit bureaus,” said the report.

Speaking later to BuaNews Nzimande said while he was not expecting Cabinet to agree all the recommendations saying “we will be presenting our case”.
“I don’t want to preempt a discussion in Cabinet, all we would like to do to the best of our ability is to present a compelling case,” Nzimande said.

He affirmed that while the report touched on many issues, not all of them can be solved in a short period of time.

“We have to go to Cabinet and say what is it that we think its feasible but that we want to increase access to poor students is non-negotiable”.

The panel has also recommended that government investigate whether to expand the categories of students admitted to universities, to include people with work experience and no matric, and end the criteria of using race as major criteria to award financial assistance to students.

Research has shown that only between 12 and 15 percent of black and coloured students gain entrance to higher education and only about five percent graduate. There is also evidence that some white students had been refused assistance even though some may have proved to be financially needy.

Nzimande slammed universities who were still demanding NSFAS students to pay registration fees in cash despite a directive from his predecessor Naledi Pandor urging universities to rather deduct the money from the scheme.

“It’s nice to talk about the parental responsibility versus state responsibility when you can afford. But the reality is that most students cannot afford these registration fees and some are from families with no bread winner at all,” he said.

The recommendations will be released for public comment.

“We want the country to engage on especially the stakeholders; many of them have participated in the process and were already interviewed. We’re talking students, academics, university management, workers and what the committee is saying is that the report has benefited immensely from the comments of the stakeholders,” Nzimande said.

The minister conceded that while the recommendations may require a major financial injection into the scheme and the higher education sector in general, a consideration needed to be made as to where the line should be drawn between state responsibility and that of parents.
NSFAS has provided study loans an estimated 250 000 students. The scheme fund receives about R2.1-billion a year from the government. -

Source: BuaNews, nsfas.co.za,

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One of Dr Blade Nzimande’s first moves as South Africa’s new Minister of Higher Education and Training was to institute a review of the National Student Financial Aid Scheme, a step that heralded his concern with ongoing inequalities in the system and his intention to widen access to higher education for the country’s poorest, mainly black students. It was also a sign that he intends to honour the African National Congress’ election manifesto commitment to begin the process of providing free undergraduate study to financially needy students.

As Secretary General of the South African Communist Party, Nzimande is no stranger to being guided by political ideology and his discourse frequently reflects his revolutionary roots and his keen sense of a constituency.

To delegates at a December 2009 South African Students’ Congress (Sasco) gathering, Nzimande described the higher education and training system as a reflection of “deeply interrelated contradictions of class, race and gender”, as well as “a key terrain” upon which to confront these contradictions.

Dr Blade Nzimande

Political rhetoric aside, Nzimande’s knowledge of this “key terrain” is not to be under-estimated. He has played a significant role in reshaping the apartheid-era education system, starting with his work in the late 1980s and early 1990s at the Education Policy Unit based at the then University of Natal. After the first democratic elections in 1994, Nzimande moved to Parliament where he was head of the select committee on education.

Now at the helm of a new department which amalgamates the government’s entire skills development function together with universities, universities of technology and vocationally-oriented further education and training (FET) colleges, Nzimande says his core mandate is to create a “coherent but diverse and differentiated post-school education and training programme” anchored within the framework of a newly-adopted national human resource development strategy (HRD-SA) administered by his department.

Significant expansion of the post-school sector is on the cards to cater for the 2.8 million or more 18 to 24-year-olds which research funded by the Ford Foundation shows are neither employed nor in any formal education or training programmes.

While Nzimande sees access to universities increasing to some extent, most of the growth is set to happen in the FET sector, although the creation of new universities in Mpumalanga and Northern Cape is also on the cards. In recent weeks, Nzimande has said he expects enrolment in the country’s 50 FET colleges to double in the next five years and institutional audits are planned for all of them, aimed at improving quality.

“Universities are only one of the post-school education and training options,” he said on 13 January, shortly after the announcement of the 2009 school-leaving examination results, which saw a disappointing 2% decline in the overall pass rate. “We believe that colleges must become institutions of choice and will play a critical role in preparing young people for economic participation.”

Despite the emphasis on growing and improving FET colleges, ministerial adviser John Pampallis said universities remain “very important”, particularly in terms of their role in expanding opportunities for the higher education sector as a whole. He told University World News the department would be looking at ways to help universities to improve their throughput rates.

Since assuming office over eight months ago, however, Nzimande’s major focus on universities has tended towards issues of equity and transformation. Transformation of these institutions is “non-negotiable”, he says, and concepts of academic freedom and institutional autonomy cannot be used to frustrate transformation.

A higher education summit is planned for April, at which the idea of a transformation monitoring group will be mooted. Pampallis said the summit would take a wide-ranging look at transformation, focusing not only on issues of equity and discrimination but also on governance and curriculum development.

The minister is also concerned, he said, about the poor performance of university institutional forums mandated by the Higher Education Act of 1997 to advise university councils on a range of issues relating mainly to transformation.

The focus on equity has been noted by Dr Nico Cloete, Director of the Centre for Higher Education Transformation (Chet), a non-governmental organisation aimed at increasing transformation management skills in higher education.

Cloete said he is concerned by what he called the department’s “back-to-1994″ approach, which largely conceived of higher education as a tool for redress rather than as a critical agent for development.

“Rather than talking about national development and the positive role of higher education in development, they are seeing higher education merely as an instrument for achieving equity and democracy,” he said.

Cloete said there had been very little encouragement for and support of the activities of successful research-led universities. “What [the minister] is not talking about is research at top-end universities. Rather, these institutions get criticised for not admitting enough black, poor students and for not being democratic enough,” he said.

Compared with his predecessor Naledi Pandor, Nzimande’s approach to transformation is a matter of emphasis rather than principle, according to Pampallis. “His tenure comes in the wake of the Soudien report and he [Nzimande] has a different political history and constituency,” he said.

Commissioned by Pandor and published in May last year – the same month as Nzimande’s appointment as minister – the so-called Soudien report, prompted by a racist incident at the University of the Free State and produced by a committee chaired by University of Cape Town education professor Crain Soudien, exposed the persistence of racism and other discrimination on South African campuses. The new minister had little option but to take the matter further.

Naledi Pandor

But Nzimande’s concern with access and participation rates is also evident in his proposal for a central applications system for higher education institutions and he has indicated he intends to meet with a range of professional bodies to talk about how to improve the numbers of black students entering professions such as accountancy and engineering.

In the face of some fears of a centralising tendency emanating from the ministry, Pampallis said there would be no day-to-day interference in the running of institutions and government’s main instrument for influencing universities would likely be funding. “It’s the minister’s job to intervene, but it will be largely at the level of policy and there will be engagement with vice-chancellors and stakeholders,” he said.

Pampallis admitted that Nzimande’s SACP ties raised fears from certain quarters. This was evident when, amid concern from the official opposition Democratic Alliance, the minister announced his intention to review the current higher education funding formula, which he said perpetuates “apartheid-type inequalities in higher education”, maintaining privilege in some institutions and keeping others perpetually disadvantaged.

But such thorough-going changes require people with expertise. For Cloete, a question mark hangs over the department’s overall capacity to execute what is clearly a highly ambitious reform-oriented agenda, particularly in the wake of a recent exodus of senior staff.

“The minister is moving towards redress and enormous expansion of the sector, but he’s put together a department without the skills or experience to support these plans,” he said.

Cloete said this shortage of senior-level skills could frustrate the department’s ambitions to steer the sector by means of a new funding formula. “As soon as you move away from standard formulas, you need capacity to implement and review these procedures. Increased steering, for example, could be seen to pose a threat to autonomy but it could also constitute a threat to the capacity to steer.”

Double-edged swords notwithstanding, higher education watchers are in for an interesting ride over the next four years.

Source: universityworldnews.com, info.gov.za

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