ALEX MALAPANE: SA must consider funding students at private tertiary institutions

As the 2024 matriculants write their final examinations a palpable mix of hope and anxiety surrounds many of them. Although they are on the brink of completing their secondary education, the future remains uncertain for a large number of these pupils.

For some the journey might end here, not because they lack the potential or ambition to progress to institutions of higher learning, but because the financial barriers are insurmountable. The reality is that while SA has made strides in expanding access to education, significant gaps remain, particularly when it comes to funding for higher education at private institutions. These gaps, if left unaddressed, will continue to worsen inequality and limit the potential of thousands of deserving students. 

In recent years it has become increasingly clear that public universities and technical vocational education & training (TVET) colleges are unable to accommodate all the students who qualify for higher education. Despite improvements in the National Student Financial Aid Scheme (NSFAS) following the 2015 Fees Must Fall protests, the system is still failing to reach a large portion of the student population.

Public universities have limited spaces, and TVET colleges, while offering more capacity, often lack the resources and infrastructure to meet the growing demand. As a result, many students have no option but to turn to private institutions, which, while offering quality education, are often out of financial reach for those from low-income households. 

The cost of studying at private institutions is prohibitively high for many SA families. In a country where a significant portion of the population lives below the poverty line, affording higher education is a luxury. According to Stats SA over 55.5% of the population lives in poverty, with many households relying solely on social grants to make ends meet. These grants, while essential for basic survival, are far from sufficient to cover the costs of higher education. For example, the child support grant provides just R510 per month, a figure that pales in comparison to the R30,000-R80,000 annual tuition fees many private institutions charge. 

In such circumstances the choice between pursuing an education and addressing immediate financial needs becomes an impossible one for many families. For households in rural areas, where opportunities are even more limited, the prospect of sending a child to a private institution becomes an unattainable dream. This is not just a problem of affordability, it is a matter of social justice. Education is meant to be a great equaliser, a pathway out of poverty and into opportunity. Yet for many South Africans the financial barriers to higher education are simply too high to overcome. 

It is time for the SA government to take a bold step and consider funding students at private institutions of higher learning. The argument that only public institutions should receive state funding is no longer tenable in a context where public universities and TVET colleges cannot accommodate all the qualified students. Private institutions play a crucial role in providing education and skills development, and they should be included in the broader strategy to expand access to higher education. 

A pragmatic model for this would involve the government subsidising a portion of the tuition fees for students enrolled in private institutions. A subsidy of 40%-75% would strike a balance between ensuring that public institutions remain the primary focus of government support, while also recognising that private institutions are essential to addressing the demand for higher education. This approach would provide much-needed financial relief to students who would otherwise be excluded from furthering their education, simply because there is no space at public institutions. 

Moreover, NSFAS should be reformed to accommodate this reality. The exclusion of private institution students from the NSFAS system leaves a significant gap in the provision of financial aid. An amendment to the NSFAS Act is necessary to include a component that supports students at private institutions. This does not mean diverting funds away from public institutions but rather expanding the scope of financial aid to ensure that all students, regardless of where they study, have access to quality education. 

Education is a public good, and the responsibility of the state is to ensure that all citizens, regardless of their socioeconomic background, have equal access to it. In many developed countries such as Germany, Norway and Finland, higher education is either free or heavily subsidised, even for students at private institutions. These countries have recognised that investing in education is an investment in the future, one that pays dividends in the form of a more skilled workforce, greater economic productivity and reduced inequality. SA too must adopt this forward-thinking approach if it is to address the deep inequalities that continue to plague its education system. 

The sector education and training authorities (Setas) can also play a vital role in closing the gap in access to education. Setas are already involved in skills development and funding for workplace training, and their mandate could be expanded to include funding for students at private institutions. Some of the Setas, such as the wholesale and retail seta, have already led the way by providing funding or bursaries to students enrolled or enrolling at private institutions, but a more direct policy intervention could allow other Setas to assist too. This would not only help address the shortage of skills in critical sectors of the economy but also provide much-needed financial assistance to students who are unable to secure a place at a public institution. 

The call for the government to fund private institutions of higher learning is not about shifting resources away from public education. It is about recognising that in the current system thousands of students are being left behind. These are students who have worked hard, passed their matric exams, and have the potential to contribute to the country’s development. Yet without financial support their dreams of higher education remain out of reach.

The government has a responsibility to ensure that every student who qualifies for higher education has the opportunity to pursue it, regardless of their financial situation or where they choose to study. 

• Dr Malapane is an executive, strategist, conference speaker and facilitator, multidisciplinary researcher and independent analyst.