Presentation to Commission of Inquiry into Higher Education and Training 12 August 2016 Prof Dan Kgwadi (Vice Chancellor) Elmarie de Beer (Executive Director Finance and Facilities) Anneke Moolman (Senior Lecturer) Lerike Jacobs (Senior Lecturer)
Agenda Introduction to NWU 1. NWU within the Higher Education Sector 2. Impact of subsidy and tuition fees on NWU Towards a sustainable National Student Loan regulatory framework – NWU view 1. The Importance of Higher Education and Training 2. The Viability of Fee Free Higher Education in SA 3. Government Objectives vs Issues of HEIs 4. HEI Funding 5. Suggested Student Fee Regulatory Framework 6. Closing Suggestions 7. Limitations
NWU within the Higher Education Sector
Teaching/Learning 9999 North-West University Total 2013 2014 2015 2016* Headcount Enrolments 60975 63135 64070 72792 FTEs/Headcount Enrolments: UG to HONS 69.5% 69.5% 68.8% 83.7% FTE/Headcount Enrolments: M&D 39.3% 38.3% 38.1% 39.1% Grad Qual Duration Rate: UG to HONS 1.96 1.90 1.79 2.49 Grad Qual Duration Rate: M&D 2.61 2.71 2.50 3.40 M&D Heads/Total Heads 6.6% 6.7% 7.0% 5.9% FTE Enrolments/Perm Acad Staff 31.9 31.6 29.5 40.7 9999 North-West University Contact Distance 2013 2014 2015 2016* 2013 2014 2015 2016* Headcount Enrolments 36195 37193 37943 39855 24780 25942 26127 32937 FTEs/Headcount Enrolments: UG to HONS 87.3% 87.2% 84.7% 87.2% 46.6% 47.0% 48.4% 80.0% FTE/Headcount Enrolments: M&D 39.1% 38.3% 38.0% 39.1% 48.6% 41.6% 45.7% 40.0% Grad Qual Duration Rate: UG to HONS 1.37 1.32 1.30 2.09 2.75 2.72 2.46 2.57 Grad Qual Duration Rate: M&D 2.62 2.71 2.50 3.40 2.15 2.44 1.69 M&D Heads/Total Heads 11.0% 11.3% 11.6% 10.7% 0.3% 0.2% 0.2% 0.2% *Provisional; not final Performance Indicators Production 4 / 8
Research 9999 North-West University 2013 2014 2015* 2016* Masters Graduates 781 746 742 8 Research Masters Graduates 506 506 521 8 Doctoral Graduates 168 171 222 7 Publication Output Units 1169.5 1127.5 1273.1 Publication Output Units/Perm Acad Staff 0.91 0.84 0.88 Weighted Research Output Units 1170 1127 1273 NRF Rated Staff/Perm Acad Staff 13.1% 12.9% 13.1% *Provisional; not final Performance Indicators Production 5 / 8
Staff 9999 North-West University 2013 2014 2015 2016* Permanent Staff 3477.0 3686.0 3876.0 3873.0 Permanent Academic Staff 1288.0 1342.0 1445.0 1446.0 Permanent Support Staff 2189.0 2344.0 2431.0 2427.0 Perm Acad Staff/Total Perm Staff 37.0% 36.4% 37.3% 37.3% Perm Acad Staff with M-degree/Total Perm Acad Staff 30.5% 29.6% 30.0% 29.0% Perm Acad Staff with D-degree/Total Perm Acad Staff 49.7% 52.2% 50.5% 50.2% Avg Age of Perm Acad Staff 43.4 43.4 43.0 43.3 Avg Period of Service of Perm Acad Staff 9.4 9.3 9.2 9.7 Female Perm Acad Staff/Total Perm Acad Staff 45.7% 46.9% 47.6% 48.2% Black* Perm Acad Staff/Total Perm Acad Staff 27.5% 28.3% 30.9% 32.0% Black* includes all race categories except White *Provisional; not final Performance Indicators Production 6 / 8
Total Research Output 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015[i] Article equivalents Conference proceedings Books
1000 1200 1400 1600 1800 200 400 600 800 0 UKZN UP UCT SU WITS UNISA NWU 2014 Publication output UJ UFS UWC RU NMMU UFH UL TUT UV DUT CPUT ISI 2014 UZ VUT CUT WSU MUT
Table 9: Percentage of total output units produced by each institution 14% (2009-2014) 12% 10% 8% 6% 4% 2% 0% "09 "10 "11 "12 "13 14 UKZN UP UCT SU WITS UNISA NWU UJ UFS RU UWC NMMU TUT UFH UL UV CPUT DUT UZ VUT CUT SMU WSU MUT UMP
Impact of subsidy and tuition fees on NWU
NWU Income mix
Bursaries
Fees covered by bursaries NWU R180m NSFAS R261m External R252m
Assistance with registration Students financed by bursaries. • Written proof of the bursary must be submitted during registration. • Where an outstanding balance of previous year is payable, and the • bursary providers have undertaken in writing to pay for that too, students are allowed to register. Students financed by bank loans and Eduloan • Written proof thereof must be submitted during registration. • Where an outstanding balance of previous year is payable, and the loan • provides to pay for that too, students are allowed to register. Realpay instalment option for students • In certain programs a pilot was done where students were allowed to • pay only the prescribed registration fees and sign a debit order to repay the remaining balance over a period of time.
Assistance with registration (continue) Individual student cases are considered e.g. • Academic performance • Few number of modules outstanding for completion • Needy students that qualify for merit bursary that would cover 1 st • payment. (Based on terms and conditions) • Investigating extension of pilot project to pay in installments via Realpay. • Investigating possible presence of several financial institutions during registration period to assist with loans.
Cross-subsidization between income streams R45m deficit added
0% fee increase – Impact for NWU Assumption: NWU can continue to increase tuition fees for 2017 and 2018 by 9,5% per year, but the phased-in premiums will not be implemented…
Increase in bad debts due to Fee Free Education expectation…
Budgeted income mix 2015 – 2016 and projection 2017 – 2018 if funding framework doesn’t change…
Towards a sustainable National Student Loan regulatory framework – NWU view
“Overcoming poverty is not a task of charity, it is an act of justice. Like slavery and apartheid, poverty is not natural. It is manmade and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a generation to be great. You can be that great generation. Let your greatness blossom.” ~ Nelson Mandela
1. Importance of Higher Education and Training Table 4: Unemployment rate of the working-age population of South Africa at the fourth quarter of 2015 Education level Unemployment rate Less than matric 28.5 Matric 25.5 Other tertiary 15.6 Graduate 5.1
1. Importance of Higher Education and Training Table 5: Education levels of South Africa’s citizens in comparison with the United States set out as percentages of the labor force Education Level South Africa United States (Stats SA, 2015) (Bureau of Labor Statistics, 2016) Less than matric 60.9 7.9 Matric 26.7 25.9 Other tertiary 7.1 27.4 Graduate 4.4 38.8 Other 1.0 - Total 100 100
1. Importance of Higher Education and Training • Employment • Increased quality and quantity in the workforce • Improved quality of products and services • Improved economy • Improved earnings • Increased tax base (SA tax revenue = Individuals (37.5%) and corporations (16.9%) (National Treasury, 2016).
1. Importance of Higher Education and Training Improved economy Improved Job products & opportuni- services ties Improved education Increased levels of tax pool population Increased funding to education institutions
2. Viability of Fee Free Higher Education in SA • 2015: Tuition fees = = R25 710 to R64 500 averaging R45 105 • 2013: Student numbers = 983,698 students • It will cost the government at least R44.4 billion to achieve tuition free education • This excludes: – Additional NSFAS funding for accommodation, etc. as well as funding for infrastructure and other earmarked grants – Growth objectives of the government to increase of enrolment at universities to about 1.62 million
2. Viability of Fee Free Higher Education in SA Table 1: Minimum annual funding required from Government for tuition free higher education Description Amount (R bn) Tuition fees required (2015 tuition fees × 2013 student numbers) 44.37 2016 NSFAS funding for accommodation, meals, books and travel 3.31 (R8.9bn × 37.2%) (Department of Higher Education and Training, 2016) 2016 Buildings & other infrastructure earmarked grant (Department 2.43 of Higher Education and Training, 2016) 2016 Development funds earmarked grant (Department of Higher 1.63 Education and Training, 2016) 2016 Other earmarked grants (Department of Higher Education 2.23 and Training, 2016) Total 53.97 Total funding provided in 2016 36.86 Minimum shortfall for free higher education 17.11
2. Viability of Fee Free Higher Education in SA • Government contributes approximately 0.9% of GDP to higher education, therefore GDP needs to grow by R1.9 9 trilli lion on to sustain free higher education • South Africa’s economy decreased by 1.2% in the first quarter of 2016 • Nothing is free, the question is: Who pays? • Other sectors? • Tax payers? Graduate tax? Reduced spending, weakened economy. • Priorities set by government will determine the distribution of available funds • Fee free higher education is not viable in South Africa • Fee free higher education for the poor? Missing middle?
Recommend
More recommend
