CIRCULAR NOTICE 6 OF 2019

[FOR UNIVERSITIES ONLY]

External Communication

TO: VICE-CHANCELLOR(S)

CC: HEAD(S) OF FINANCIAL AID OFFICE

CHIEF FINANCIAL OFFICER(S)
FINANCE EXECUTIVE FORUM (FEF)
UNIVESRITIES SOUTH AFRICA (USAf)

FROM: RANDALL CAROLISSEN

EXECUTIVE ADMINISTRATOR

DATE: JANUARY 16, 2019

SUBJECT: CIRCULAR NOTICE 6 OF 2019: 2019 FUNDING UPDATE

1. INTRODUCTION

In Circular Notice 2 of 2019, issued on November 27, 2018, institutions were informed about preparations for the 2019
funding cycle. The Circular Notice 6 of 2019 gives institutions an update on key areas regarding 2019 funding with the
following elements flagged for your attention, as they impact directly and critically on the 2019 funding cycle.

2. FUNDING GUIDELINES

The DHET has provided the funding guidelines for 2019 which are attached. The allowance amounts are summarized below:

2.1. FULL COST STUDENTS PER ANNUM ALLOWANCES (FOR NEW FTENS AND 2018 FTEN RENEWALS).

 Food: R14 400 (inclusive of the R2750 living allowance) for those students in self catering residence and off campus
accommodation
 Off Campus Accommodation: as per the institutions off campus accommodation guidelines but may not exceed the
cost of a room in self catering residence
 Transport: R10 000 only for students living at home
 Living Allowance: R2 750 for all students in catering residences or living at home
 Books: R5 000 for full time of study
 Distance learning students (UNISA): only eligible for a book allowance per module to a maximum of R5 000 and
the Living Allowance of R2 750
 2.2. CAP-FUNDED STUDENTS PER ANNUM ALLOWANCES (ADMITTED TO HIGHER EDUCATION PRIOR TO
2018)

Cap-funded students do not qualify for the new full cost bursary allowances, as in 2018. However, the Food allowance was
brought in line to cater for those students that received significantly low food allowances at some institutions. Allowances
are payable up to the funding CAP of R88 600 for 2019.

 Food: R14 400

 Off Campus Accommodation: as per the institutions off campus accommodation guidelines but may not exceed the
cost of a room in self catering residence
 Transport: Institutions may increase this allowance by 5.3% provided it does not exceed R10 000
 Books: Institutions may increase this allowance by 5.3% provided it does not exceed R5 000
 Living Allowance: R2 750 for students in catering residences and living at home
 Distance learning students (UNISA): only eligible for a book allowance per module to a maximum of R5 000 and
the Living Allowance of R2 750

3. DHET FEE GRANT

As per the Ministerial Statement, “Universities will no longer claim gap grant funding from the Department from 2019/20
onwards. Each university is responsible for phasing out from the 2019 academic year the cohort of poor and missing middle
students who benefitted from the gap grant during the 2018 academic year. Each university will manage surpluses and
shortages in gap grant funding until all members of this cohort of students is no longer enrolled at the university, even if it
takes more than four years.

Students who are still in the university system and who benefited from the gap grant in the 2018 academic year, will pay the
agreed upon increase on their discounted 2018 fee in 2019, and in each year thereafter, their fee will increase in line with
the agreed upon increment, until they exit the system. Universities will manage the fee accounts of these individual students
without submitting claims for individual students to the Department. However, this must be audited as part of the universities
annual audit and must be reported each year in the annual report submitted to the Department until such time as all students
in the cohort have exited the university.” Universities will therefore submit the registration costs for tuition and residence
accommodation to NSFAS in line with this directive. NSFAS will audit amounts submitted to ensure compliance.

4. WALK-IN APPLICATIONS

NSFAS has consistently communicated that November 30, 2018 is the closing date for 2019 funding applications and that
no late applications will be considered. Following engagements with DHET, you are informed that we will not open another
application window for 2019. However, we will consider applications for NSFAS funding for 2019, where an applicant was
admitted to an institution from the CACH system. Institutions will be required to send NSFAS a spreadsheet with the
applicant’s data. This information will be verified against CACH before applications will be accepted for processing eligibility.

5. ALLOWANCE PAYMENTS

The NSFAS allowance funding is to assist eligible students with funding for costs related to their studies such as books,
accommodation, food, and travel where applicable. In the process we want students to grow to be responsible citizens and
take charge of their economic needs and responsibilities. The voucher system that has been used in the pastis very limiting
in this regard. Therefore, all 2019 NSFAS allowances paid to students must be in cash form, preferably directly into the
student’s bank account. NSFAS is already encouraging our beneficiaries to open accounts with the bank of their choice.
The student leadership is supporting us in this action.
NSFAS requires that institutions pay full-time contact students directly and ensure that they receive a minimum of R5 275
as first allowance payment within 2 - 3 days of registration to enable to students to have funds available for books and other
needs in their first month of study.

Distance learning students’ amount will receive a minimum of the student’s the R275 living allowance. The institution can
pay out a book allowance at their discretion within the policy parameters applicable to distance learning students.

As per previous Circular, Universities will be required to submit monthly details to NSFAS on allowances paid to registered
eligible students.

6. BANKING CAMPAIGN

NSFAS is encouraging students to open bank accounts for the purposes of allowance payments. Institutions are expected
to have in place measures to deal with students that do not have bank accounts at the time of the first disbursement. NSFAS
will provide guidance on such remediation.

7. FUNDED STUDENTS

To date NSFAS has made significant progress in approving students funding for 2019. Close to 300 000 applicants have
been confirmed eligible subject to registering at a public institution for an approved course of study. Of these 67 040 have
academic offers matched from institutions. We expect that further admissions data will be submitted following the release of
the NSC results. Information on funded students is available to institutions via the myNSFAS Manager Portal and the
Integration Service. NSFAS is unable to provide every applicant with a letter for institutions. It is possible that fraudulent
letters may surface, given the volume of fake news that has been generated recently. Institutions are therefore requested to
use only the available mechanisms listed above that provide information directly on funded students.

Renewal of funding has been processed for those students for whom we have received results, except for those students
still being resolved due to data discrepancy issues. We request that no student that has signed their NBA be disadvantaged
for registration due to an outstanding payment from NSFAS that will cover outstanding fees. Every effort is being made to
close out the unresolved matters by end of January 2019.

Unfortunately, N+2 and unfunded programmes relating to 2018 remain a challenge. Kindly double check and advise of any
anomalous renewals resulting from the quality of qualification data in prior years.

8. MOU AND ADVANCE PAYMENT

Please be reminded that a signed MOU is required before NSFAS can process the advance payment, in keeping with the
NSFAS Act requirements. The advance payment will however be subject to the University’s feedback on ensuring that
students receive their allowances in a direct cash payment.

9. REGISTRATION FEE

NSFAS eligible funded students are exempt from paying registration fees, as in previous years. Kindly ensure that this is
applied during registration.
 10. DATA REQUIREMENTS

NSFAS has undertaken some significant changes to improve the 2019 processing and institutions support and data is
essential to success. Qualification data is a critical deliverable, and only half of the sector has fully complied with the data
format requirements to date. We kindly request your support in ensuring that your institution is compliant to all the data
submission deadlines outlined in Circular Notice 3 of 2019 (Advance payment for 2019 academic year).

Should you need any further details, please do not hesitate to contact my office on ExecutiveAdmin@nsfas.org.za.

Yours Sincerely,

Dr Randall Carolissen
Executive Administrator

10 Brodie Road, House Vincent T: 0800 067 327 | 021 763 3200
2nd Floor, Wynberg, Cape Town, 7800 E: mawadaa@nsfas.org.za
Private Bag X1, Plumstead, Cape Town, 7801 W: www.nsfas.org.za

OFFICE OF THE ADMINISTRATOR

The appointment of Dr Randall Carolissen as the Administrator to the National Student Financial Aid Scheme is in terms of Section 17A (3)(a) of the NSFAS Act (Act 56 of
1999 as amended), effective from August 21, 2018 as published in the Government Gazette by the Minister of Higher Education and Training, Mrs Naledi Pandor, MP.