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Memorandum from the Parliamentary Office
NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION 192
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 21/02/2014
(INTERNAL QUESTION PAPER 2 OF 2014)
Mr L Ramatlakane (Cope) to ask the Minister of Higher Education and
Training:
(1) Whether his department has introduced guidelines to regulate the
manner in which the universities bill students with regard to various
cost items from the allocated subsidy and/or bursary paid in lieu of
each student to constrain certain items from utilising most of the
funds; if so, (a) what amount or percentage of the total amount has
been allocated to (i) accommodation, (ii) food, (iii) cafeteria
expenditure, (iv) vouchers issued to each student and (v) any other
items, (b) which item is a high cost driver, (c) what is the percentage
cost of the specified item and (d) what plans are in place to reduce
costs; if not,
(2) whether his department intends to institute an investigation to
determine which cost item is the highest cost driver; if so, (a) will
his department develop uniform guidelines to be implemented by all
universities, (b) what is the time frame for the investigation and (c)
what are the further relevant details?
NW198E
REPLY:
(1) The Department has not introduced guidelines to regulate the manner
in which universities bill students with regard to various cost items
from the allocated subsidy and/or bursary paid in lieu of each
student.In terms of the Higher Education Act and individual
Institutional Statutes, the mandate for determining fees rests with
the Council of an institution.Through consultative processes,
Councils at universities decide on their fees based on costs
associated with tuition, accommodation, associated costs, books,
learning materials and related increments. All of this is based on
the respective universityâs needs, operational costs, budgets and
student profile.
(a) Government subsidies through the allocation of block grants assist
universities to contain tuition costs to a reasonable level. However,
accommodation, food, books and other essentials costs, increased the
average full cost of study from R28Â 000 to R64 000 per annum
for the 2014 academic year.
(b) The major cost driver is the cost of living.
In the case of loans and bursaries awarded through the National
Student Financial Aid Scheme (NSFAS), the maximum and minimum amounts
for loans and bursaries is determined by the NSFAS Board. The NSFAS
maximum loan amount is generally equal to the national Full Cost of
Study average which was R64Â 000 for the 2014 academic year.
Whereas loans and bursaries awarded by universities are done in
consultation with their respective financial aid offices and student
organisations to determine the loan and bursary amounts that will
meet the cost of accommodation, books, meals and travel allowances at
a particular university.
(2) The Department does not intend to undertake any further
investigations at this point in time as it has concluded a review of
NSFAS in 2010 and is in the process of implementing some of the
recommendations from the review report, which includes the
centralisation of financial aid. In 2012, a student accommodation
review was completed and some of the recommendations are now being
implemented. Furthermore, a review of the funding of universities was
completed in October 2013 and published in February 2014. Given
the three Ministerial reviews and annual audited financial reports
submitted by universities, the Department has not planned to
undertake any new investigations. However, oversight and monitoring
of all universities will remain a key priority for the Department.
Compiler/contact persons: Pearl Whittle
Ext: 5248
DIRECTOR âGENERAL
STATUS:
DATE:
QUESTION 192APPROVED/NOT APPROVED/AMENDED
Dr B NZIMANDE, MP
MINISTER OF HIGHER EDUCATION AND TRAINING
STATUS:
DATE: