Sizwe Nxasana: Proposed contingency loan model may hamper poorer students

President Jacob Zuma released the highly-anticipated 700-page document on Monday which suggests that R50 billion should be poured into the expansion and development of Technical Vocational Education and Training (TVET) institutions.

The report recommended establishing a cost-sharing model between the state and commercial banks to fund university students. This model would see the National Student Financial Aid Scheme (Nsfas) being replaced by a new income-contingent loan system.

Sizwe Nxasana, the chairperson of Ikusasa Student Financial Aid Programme (ISFAP) spoke to Bongani Bingwa host of the Afternoon Drive show on 702 on the feasibility of the report's findings.

He says there a few recommendations he supports such as the additional funding proposed for TVET colleges as well as the need to increase funding towards historically disadvantaged universities.

The recommendations I have a difficulty with are the proposed income contingent loans.

Sizwe Nxasana, the Chairperson of Ikusasa Student Financial Aid Programme (ISFAP)

Even though the recommendations speak of a cost sharing model, it also contradicts itself because those loans would be guaranteed by government.

Sizwe Nxasana, the Chairperson of Ikusasa Student Financial Aid Programme (ISFAP)

I don't think the state will have the capacity to guarantee that all loans are available to students for a while explains Nxasana.

The other is that all these loans would be available to all students including those who can afford. Now it has been proven many times in different countries that those who are likely to afford these loans and apply may crowd out poorer students.

Sizwe Nxasana, the Chairperson of Ikusasa Student Financial Aid Programme (ISFAP)

With the drop rates being higher, you may even end up with anti-selection environment where banks may feel more inclined to approve these contingency loans to the working class students, leaving the poor out in the cold adds Nxasana.

Sizwe Nxasana is also the National Student Financial Aid Scheme (NSFAS) chairperson

For more of Nxasana's analysis on the Hefer commission of inquiry into Higher Education and Training fees click on audio below:


702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
'Fees Commission Report fell far short of what students wanted'

'Fees Commission Report fell far short of what students wanted'

Economist Xhanti Payi says the Commission's recommendations do not provide the free education demanded by students.

Opinion: The political symphony playing out in SA is reaching a crescendo

Opinion: The political symphony playing out in SA is reaching a crescendo

Stephen Grootes gives his take on some of the political news that made headlines on Monday.

Income-contingent loan model opens the way to deal with missing middle - Bawa

Income-contingent loan model opens the way to deal with missing middle - Bawa

The Commission recommends that NSFAS be replaced at universities by Income-Contingency Loans.

Banks can't lend money without expecting it back: Fees Report

Banks can't lend money without expecting it back: Fees Report

Director of Banking Association of SA says they are prepared to play a role but the fees recommendations need to be sustainable.

Zuma's rumoured free education plan could be ploy for 2019, says Ralph Mathekga

Zuma's rumoured free education plan could be ploy for 2019, says Ralph Mathekga

Political analyst Ralph Mathekga says rumors of free education are in line with Zuma's 'radical economic transformation' rhetoric.

Free education for TVETs and university loans provided says Presidency

Free education for TVETs and university loans provided says Presidency

Spokesperson for the Presidency Bongani Ngqulunga outlines some of the recommendations made in the Fees Commission Report.

DA 'thrilled' over PAIA success as Fees Commission report is set for release

DA 'thrilled' over PAIA success as Fees Commission report is set for release

President Jacob Zuma will release the #FeesCommission Report on Monday afternoon.

Free education should've been implemented a long time ago - Holomisa

Free education should've been implemented a long time ago - Holomisa

UDM Leader, Bantu Holomisa responded to reports that the President is interfering in the operations of National Treasury.

UCT students bemoan poor mental health support, Parly committee visits campus

UCT students bemoan poor mental health support, Parly committee visits campus

Classes were canceled and some students arrested last week when a group of at least 200 protesters caused disruptions.

Student leaders can make populist activism work in SA, says Professor Swartz

Student leaders can make populist activism work in SA, says Professor Swartz

She says student leaders understand how to use populist activism to bring about implement change.

[LISTEN] Ndlozi: Mazzotti donated R200 000 to EFF registration in 2014 election

[LISTEN] Ndlozi: Mazzotti donated R200 000 to EFF registration in 2014 election

EFF's Mbuyiseni Ndlozi says the party was not aware of Mazzotti's alleged links to the underworld when it accepted party funding.

Popular articles
Investing in increasingly wealthy Mauritius (Africa’s most functional democracy)

Investing in increasingly wealthy Mauritius (Africa’s most functional democracy)

Bruce Whitfield interviews Nikiwe Bikitsha, who is on a fact-finding mission in Mauritius courtesy of Standard Bank.

 Law Society concerned with announcement on LLB accreditation

Law Society concerned with announcement on LLB accreditation

The Council on Higher Education announced that four universities are at risk of losing their accreditation for LLB.

SAB urges public to stop abusing free water at Newlands Spring

SAB urges public to stop abusing free water at Newlands Spring

There have been several reports of abuse of the facility, with a number of people tapping far more water than is allowed.

6 ways the new UIF bill benefits workers

6 ways the new UIF bill benefits workers

The broadened bill will see those who lose their jobs receive money for a longer period when they apply for unemployment benefits.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?