New NSFAS Funding Model Proposal Anticipated by 2024, According to Mashatile

New NSFAS Funding Model Proposal Anticipated by 2024, According to Mashatile. Deputy President Paul Mashatile has disclosed his anticipation of presenting a proposal for a revamped funding model for the National Student Financial Aid Scheme (NSFAS) to the Cabinet by the close of 2023. The current funding system has encountered significant challenges, marked by the dismissal of its CEO for irregular procurement practices, coupled with student struggles in receiving allowances due to complications with the newly implemented direct payment system.

Challenges in the Current NSFAS Funding Scheme

Recent disruptions within the tertiary education funding scheme have manifested as students grapple with difficulties accessing their monthly allowances. Concurrently, the dismissal of the former CEO amid irregular procurement practices has added to the tumultuous environment surrounding NSFAS.

Cabinet Glimpse into the Proposed Funding Model

In response to questions raised in the National Assembly, Mashatile underscored the government’s commitment to addressing the flaws in the existing NSFAS funding scheme. He expressed the government’s desire to ensure that any new funding model would accommodate the “missing middle,” permitting this group to secure loans for their educational pursuits.

Key Elements of the Proposed Funding Model

Mashatile outlined the key components of the proposed funding model, emphasizing that it aims to maintain current funding for economically disadvantaged students with an annual household income ranging from R0 to R350,000. Additionally, the model seeks to establish a funding strategy for the “missing middle,” engaging the financial sector to provide loans for students falling within this income bracket.

Ongoing Investigations and Ministerial Initiatives

Addressing concerns related to the challenges in the direct payment system and the involvement of service providers, Mashatile disclosed that investigations are still underway. Despite these challenges, he confirmed that the Minister of Higher Education has presented a new funding model to the Cabinet, with ongoing efforts to align the proposed changes with the needs of students and the overarching goals of the R50 billion NSFAS scheme.