NATIONAL STUDENT FINANCIAL AID SCHEME

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NATIONAL STUDENT FINANCIAL AID SCHEME
NSFAS was established in 1999 as a public entity
by an act of Parliament to provide for the
granting of loans and bursaries to eligible
students at public higher education institutions
and for the administration of such loans and
bursaries and to provide for the recovery of
loans.
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• 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.

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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.
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(No Transcript)
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Core Award Scheme

Interest rate to be linked to Repo Rate in
future
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Monthly Example
NSFAS continues to implement improved loan
recovery strategies resulting in improved
collections
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Additional teacher education ring fenced funds of
R66 million is allocated according to proposals
from HEIs
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• 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.
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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.
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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
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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.
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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 Childrens Act)

Building a Sustainable Financial Aid Scheme