Achieving excellence in education together. 8 th September 2016
WHO IS APPETD? • A recognised non-profit company that operates as a unified representative body in support of social, economic and educational processes that benefit learners and private providers
CORE OBJECTIVES ALIGNED TO SOCIAL JUSTICE IMPERATIVES
SECONDARY OBJECTIVES Dissemination of information Platform for legislative commentary Capacity building Networking opportunities APPETD Surety Scheme Trust and reputation
APPETD LEADS THE BROADER PRIVATE EDUCATION AND TRAINING INDUSTRY THROUGH: • interaction with legislative authorities in presenting the needs, benefits and contributory value of the private sector, • development and empowerment of members to be effective, sustainable organizations, • informing and guiding members regarding best institutional, educational and quality practices, • promoting education and training as a professional career.
IMPACT OF PRIVATE EDUCATION
SOME OF OUR MEMBERS
OUR NATIONAL REPRESENTATION • National Skills Authority • Sector Education & Training (NSA) Authorities • Education & Training • S. A. Council of Educators Quality Assurance (SACE) Committees (ETQAs) • S. A. Society for Co- • Higher Education Quality operative Education (SASCE) Committee (HEQC) • Worlds Skills Steering • Quality Council for Trades Committee and Occupation (QCTO)
NATIONAL MEMBER REPRESENTATION Eastern Cape Western cape 5% 15% Mpumalanga 7% Limpopo 7% Gauteng 47% NorthWest 4% KZN 12% Free state 3%
NSFAS & THE MISSING MIDDLE • NSFAS < R122 000 pa with conditions (Sizwe Nxasana, Chairperson - NSFAS : April 2016) • Private higher education – supports low cost and prestigious institutions • Low cost institutions could support the Missing Middle: combined household income between R 122 000 – R 250 000 pa • No NSFAS loans or grants for missing middle • NSFAS funds public institutions only – NOT APPETD members 10
BANK FINANCE AND COMMERCIAL LOANS – THE MISSING MIDDLE • Financial Institutions – Fewer loans to Missing Middle • Students loans issued are too small in value • Research by Eighty:20 research group indicates non approval rate of 50% • Bank loans generally not available for TVET qualifications 11
PRIVATE HIGHER EDUCATION – A PART OF THE SOLUTION • 80 000 Students in private higher education • Higher Education Act regulates both public & private providers • Private providers have a Constitutional right • Niche Higher Education programmes lead to rapid employment • No state subsidies, grants or allowances to private providers • Low cost private providers address the needs of the poor and should be supported with Treasury funding 12
COMMON ACCREDITED QUALIFICATIONS (CHE) Bachelors Degrees: • Bachelor of Science in Information Technology • Bachelor of Commerce • Bachelor of Business Administration • Bachelor of Arts • Bachelor of Public Administration Diplomas, Higher Certificates & Adv Certificates in: • Information Technology • Computer Applications • Systems Engineering • Business Administration • Public Administration • RPL Practices 13
COMMON ACCREDITED QUALIFICATIONS(QCTO ) Quality Council for Trades and Occupations(QCTO) Mainly focused on Occupational and Trade Certifications: • Seta Qualifications – Quality Assurance responsibility • Employer/Artisan training facilities • NATED ‘N’ Qualifications – N4 to N6 • Quality Development Partner • Assessment Centres 14
COMMON ACCREDITED QUALIFICATIONS (UMALUSI) Mainly focused on General and Further Education and Training : • Nated ‘N’ Qualifications – N1 to N3 • National Certificate Vocations(NCV) – Level 2 to Level 4 • Quality Assurance 15
NATIONAL BUDGET IN CONTEXT • Higher Education budget is made up of: • University subsidies – R28 bn • Education administration – R 14.6 bn • NSFAS – R14.3 bn • Skills Development levy – R15.9 bn • TVET – R6.9 bn • None to private providers • Taxpayer cost per student per year: R 42 600 16
EXPENDITURE ON HIGHER EDUCATION AS % OF GDP, 2012 4.50 3.00 2.18 1.76 1.44 1.39 1.38 1.24 1.20 0.95 0.93 0.71 Cuba China Finland Malaysia Ghana USA Senegal Australia India Brazil Chile South Africa 17 % of GDP is < 1% ie 0.7% •
TRUE COST OF PUBLIC EDUCATION (e.g. 1 st Year B.Com at Wits) • University fees cost: • Parents – R40 000 (approximately) • Tax Payer (R42.6 bn / 1 m students) – R 42 600 • Donor & Third Stream Funding (Eg: Wits – R20 000) • Total cost – R 102 600 18
INTERNATIONAL STUDENT FUNDING BEST PRACTICES – PRIVATE INSTITUTIONS SADC • Botswana • Namibia • Swaziland International • Singapore • Malaysia
TYPICAL PUBLIC UNIVERSITY FEES University 2015 North–West University R47 000 University of Pretoria R36 250 University of KwaZulu-Natal R39 170 University of Johannesburg R22 520 University of Free State R30 115 University of Cape Town R62 000 Stellenbosch University R33 164 Average Public University : R 38 428 (High = R 62 000; Low = R 22 520) 20
DIFFERENTIATION BETWEEN LOW COST & PREMIUM PRICE PRIVATE PROVIDERS BCom Degree (1st year of study) R80 000 R70 000 R60 000 R50 000 R40 000 R30 000 R20 000 R10 000 R0 Richfield Mancosa Damelin CTI Varsity Boston Rosebank (previously College PC Training & Business College) Average Private Provider Costs: R 25 000 (Includes tablet PC in some cases) 21
FREE HIGHER EDUCATION - NOT FOR THE RICH OR FINANCIALLY PRIVILEGED • “FREE higher education for all is a bad idea,” Centre for Higher Education and Training (CHET) director Dr Nico Cloete. • Support : “Only the rich and middle class will benefit from free education as they are likely to qualify for university.” • “What is easy and morally defensible is free higher education for the very poor, like those who earn below R120 000 a year.” 22
STUDENT UNIONS MUST BE INVOLVED IN FINANCIAL ASSISTANCE PROGRAMMES • The Pan African Student Movement • The South African Further Education & Training Student Association ( Safetsa) • South African Students Congress (SASCO) • South African Union of Students (SAUS) BUT Should not discriminate against low cost private providers 23
NATIONAL DEVELOPMENT PLAN • The National Development Plan for South Africa as well as the White Paper on Post School Education, records that the Department of Higher Education and Training recognizes that independent private institutions play an important role in the post-school education and training environment. • Any reconceptualization of a post school education and training system would most definitely be incomplete without reference to both public and private spheres. 24
NATIONAL HIGHER EDUCATION GROWTH TARGETS • The National Development Plan also requires the higher education sector to increase enrolment levels annually from 950 000 in 2010 to 1.6 million by 2030. • Unless we find ways to reduce the costs of delivering higher education, this increased enrolment will require increased funding. • Private providers offer a large selection of certificate, degree and diploma products at affordable prices to cater for the large majority of South African students who do not gain access to public universities. 25
SOUTH AFRICA’S POST-SCHOOL SYSTEM, 2010 VS 2014 26 - 2010 NEET = 2.7m - 2014 NEET = 3.0M (CHET) (Not in Employment, Education or Training)
SOUTH AFRICA’S POST-SCHOOL SYSTEM, 2010 VS 2014 - IMPLICATIONS • 3M youth not in employment, education nor training(NEET) • National youth unemployment Rate - 40% • Graduate unemployment rate - 5%(As per CHE Submission to HE Commission) • Social unrest could be better managed with unemployed graduates(5%) than youth not in employment, education nor training 27
LOW COST PRIVATE PROVIDERS COULD HELP ACHIEVE NATIONAL STUDENT TARGETS • Private institutions can provide the shortfall at a lower cost & more efficient rollout, increase productivity and more effective cost management. • Some of the increased capacity required already exists in the private education sector eg. one provider has 8000 under-utilised seats and a further 10 000 mothballed seats which could be brought to economic use at short notice • Quality should not be compromised under any circumstances with the Council on Higher Education continuing its current Quality Assurance initiatives. 28
INCLUSION OF LOW COST PRIVATE HIGHER EDUCATION INSTITUTIONS IN THE SOLUTIONS TO SA’s HIGHER EDUCATION NEEDS In the spirit of the vision of the National Development Plan, it is imperative for the South African government and in particular the Department of Higher Education and Training and the National Treasury to seriously consider funding low cost private tertiary education. The substantial ETD capacity that has already been created by providers like Richfield could: • Improve access & RPL • Increase success rates • Increase graduate employment rate (95% - CHE) 29
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