Treasury exploring ways to fund higher education shortfall
National Treasury on Tuesday said it was exploring different mechanisms of finding the money to pay for the shortfall that will be created by National Student Financial Aid Scheme (NSFAS) students and those termed 'the missing middle' who will be exempt from fee increases for 2017.
Higher Education Minister Blade Nzimande on Monday announced that universities will determine their own fee increases - capping it at 8 percent.
Treasury said a policy decision has been made to subsidise the fees of those students from poor backgrounds and the "missing middle" (those who are classified as "too rich" to qualify for government support, but "too poor" to afford tuition fees).
It added that it is working with various departments and agencies to address the shortfall.
"In the present constrained fiscal environment this is an extremely challenging situation. It is important, therefore, that those who can afford to pay do so to enable the state to support the ever increasing numbers of those who deserve support and cannot afford. National Treasury also supports the call encouraging all NSFAS beneficiaries who are employed to start repaying their loans. This is part of each citizenry responsibility to play a part in helping other students who are in need of financial aid," it said.
National Treasury said it will continue to work with the Department of Higher Education and Training on the fees matter and will announce the results of the process during the Medium Term Budget Policy Statement on 26 October 2016.