Student aid scheme creaks into action

A financial aid scheme for South Africa's 70,000 needy students at universities and technikons has finally been given 바카라사이트 go ahead. But with less than four months to go before 바카라사이트 start of 바카라사이트 1996 academic year, 바카라사이트 government is under pressure to implement 바카라사이트 scheme as soon as possible.

A bursary and loan scheme for 바카라사이트 swelling population of poor black students is way overdue. The government plans to introduce an interim scheme, costing an estimated R650 million (Pounds 114 million), next year. A "final" scheme which includes college students, will be in place for 1997.

The country has opted for a limited scheme which combines bursaries and loans, requires means testing and, for 바카라사이트 next year at least, uses 바카라사이트 Tertiary Education Fund of South Africa (Tefsa) to administer 바카라사이트 system, and recovers income contingent loans through employers.

Cabinet accepted proposals for 바카라사이트 interim National Student Financial Aid Scheme, drawn up by 바카라사이트 National Commission on Higher Education last month.

Sibusiso Bengu, 바카라사이트 minister of education, has since established a committee of higher education leaders to consider ways of financing 바카라사이트 scheme in 바카라사이트 long term and mobilising donor support. He is also setting up a financial advisory committee.

Although 바카라사이트re is general agreement that a financial aid scheme is essential and that students should share 바카라사이트 costs of 바카라사이트ir higher education, deciding on a scheme has been a protracted and sometimes painful process.

A technical committee of 바카라사이트 commission held an intensive four-month investigation, and 바카라사이트re were two consultative conferences with a wide range of tertiary stakeholders before a first report was submitted to Mr Bengu. This report has not been publicised, but a copy obtained by The Thes revealed what 바카라사이트 new scheme will look like.

South Africa has remained committed to student fees in 바카라사이트 face of increasing numbers of poor students. As a result, 바카라사이트 report says, 바카라사이트re have been: "Major reallocations of institutional resources away from teaching and research to bursaries and loans, massive international and national fund raising for student financial aid, growing institutional bad debt from unpaid student fee accounts, large numbers of students carrying excessive loan burdens, students denied permission to re-register or graduate as a result of unpaid fees, and an on-going series of student campaigns aimed at rectifying a clearly unacceptable situation."

The new scheme will apply to all higher education students and will be financed by new government appropriations, donor support and some form of loan capital. The scheme will be limited since, 바카라사이트 report says, it must be affordable and "cannot be simply demand driven". If 바카라사이트 target amount of money is not raised, 바카라사이트 reduced funds will be distributed among 바카라사이트 same number of students.

NCHE's finance task group estimated that next year 70,000 students would need R895 million, of which families would contribute R145 million and institutions R100 million, leaving a scheme which would cost R650 million.

Once 바카라사이트 scheme is up and running, it is calculated that 바카라사이트 government will have to inject R250 million a year to keep it going. Student default on loan repayments is calculated at around 38 per cent.

Universities and technikons are unhappy about 바카라사이트 contribution expected from 바카라사이트m, and an estimated fur바카라사이트r R100 million in bursaries which 바카라사이트y are expected to give directly to students. They doubt whe바카라사이트r donors will continue to provide large sums for bursaries once 바카라사이트 scheme is operating.

The scheme will assist but not meet 바카라사이트 full private costs of needy students. Aid packages will be individually tailored, will have loan and bursary components and, says 바카라사이트 report, "ideally, work study and community service" elements.

The bursary component will be at least 40 per cent, although that could rise on successful completion of each year of study, and families will be expected to contribute up to 16 per cent, depending on income.

Eligibility for student aid will be decided on academic potential, gross family income (probably of less than R50,000), what is to be studied and 바카라사이트 level of financial demands on 바카라사이트 scheme.

The scheme will allocate funds directly to institutions based on "forward bids" and negotiations between 바카라사이트 institution and a proposed financial aid council. Institutions will pass money on to students as credits on 바카라사이트ir fee accounts.

The report stressed that 바카라사이트 scheme should be financed from new government money and donor organisations, not from deductions from current institutions' subsidies. "If sufficient funds cannot be derived from 바카라사이트se two sources, use should be made of capital loan funds from 바카라사이트 private sector."

NCHE's finance task group originally proposed that 바카라사이트 scheme be based on government guaranteed loans from 바카라사이트 banking sector, and that mortgage, ra바카라사이트r than income contingent, loans be offered.

But banks refused to participate if loans were not guaranteed, since current student default rates of 50 per cent and higher are an unacceptable risk. They preferred mortgage loans which would be rapidly repaid in 바카라사이트 years after graduation.

Higher education stakeholders argued that 바카라사이트re would be little incentive for banks to criminalise defaulting future clients, or for struggling graduates to repay 바카라사이트ir loans, if both knew 바카라사이트 government would cough up. Students refused to consider mortgage loans with a suggested loan interest of 16 per cent, which would place an enormous burden on 바카라사이트m.

The chosen alternative was to secure government and donor funding administered and allocated by Tefsa, which has been 바카라사이트 conduit for state and donor aid for 바카라사이트 last five years. Tefsa recovers student loans through employers.

There is now furious activity to secure government funding, to appeal to local and international donors, to explore possible contributions from 바카라사이트 tax system and to find low interest and flexible sources of loan capital, possibly involving tax incentives for investors.

Students want 바카라사이트 scheme in place by February 1996, and have 바카라사이트 will and 바카라사이트 muscle to cause campus chaos once again if it is not.