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Nzimande announces R3.8bn loan scheme for ‘missing middle’ students in 2024
Those who obtain 70% or above on average and within prescribed time will get 50% reduction on loan on request.
Higher Education and Training Minister Blade Nzimande, Picture: GCIS
Minister of Higher Education, Science and Innovation Blade Nzimande has announced that the government has set aside R3.8 billion to fund the country’s ‘missing middle’ students who were not covered by the National Student Financial Aid Scheme (Nsfas).
The missing middle students come from households with a total income of more than R350,000 and less than R600,000 per annum.
The Nsfas bursary funds students from households with a total family income of up to R350,000.
ALSO READ: Nsfas board terminates CEO Andile Nongogo’s contract
Exceptions are made for students with disabilities, whose households earn not more than R650,000 and households that have more than one student at university, whose income is also not more than R650,000.
Between 2019 and 2022 Nsfas has paid R123 billion for just over 2.9 million beneficiaries.
Briefing the media on the implementation of the first phase of the student funding model of the missing middle, Nzimande said R3.8 billion had been set apart for the loan scheme for the 2024 academic year.
The amount is expected to fund 47% of the missing middle students, which is about 31,884 of the estimated 68,446 students in this category.
Phase 2 of the funding model is expected to be implemented from 2025 to 2034, and the government will increase the funding to R31.6 billion to R42.1 billion over ten years.
ALSO READ: Nsfas CEO Andile Nongogo placed on special leave as direct payment contract probed
“We are ready to implement the first phase of the model, which will ensure that what we call the missing middle students will now be able to access financial support from government in a form of a loan to pursue their students,” said Nzimande.
“This loan scheme will be administered by Nsfas, which is required by law to offer and manage student loans.”
Nsfas will look for partners to manage the loan scheme as required by the law, said Nzimande.
This after Nsfas terminated contracts of four direct payment service providers following allegations of conflict of interest in their appointment.
“As an administrator, Nsfas will deliver on front-end services, that is user interface, and where appropriate will, partner with public or private financial institutions as well as universities with experience in running student loan schemes, to provide backend support and other services.”
Students who qualify:
- Students whose annual household income is between R350,000 to R600 000;
- TVET and University (public) students;
- Undergraduate or postgraduate students;
- 70% Science, technology, engineering and mathematics (STEM) programmes (which may be adjusted to include commercial programmes that are in demand in the labour market or entrepreneurial programmes);
- 30% Humanities programmes; and
- Students willing to sign a loan agreement.
Students can apply for the loan to continue to be funded through the loan, and are expected to get a 60% pass rate on average).
Those who obtain 70% or above on average and within prescribed time will get 50% reduction on loan on request.
They will be supported for tuition, learning material and accommodation.
Nsfas’ acting chairperson
Nzimande further announced the appointment of former vice-chancellor of the Tshwane University of Technology (TUT), Professor Lourens van Staden, as an acting chairperson of Nsfas with immediate effect.
This comes in light of board chairperson Ernest Khosa’s leave of absence amid allegations of corruption against him by the Organisation Undoing Tax Abuse (Outa).
Although Khosa denied the allegations, he took a leave of absence until investigations are concluded.
He also raised concerns about threats that have been made against him and his family.
READ MORE: Nsfas board chair Ernest Khosa takes leave of absence amid corruption allegations
