Report of the Commission of Enquiry into Higher Education and Training

The Report of the Commission of Enquiry into Higher Education and Training regarding the feasibility of making higher education and training fee-free in South Africa has been released. "The Commission recommends that all undergraduate and postgraduate students studying at both public and private universities and colleges, regardless of their family background, be funded through a cost-sharing model of government guaranteed Income-Contingency Loans sourced from commercial banks. Through this costsharing model, the Commission recommends that commercial banks issue government guaranteed loans to the students that are payable by the student upon graduation and attainment of a specific income threshold. Should the student fail to reach the required income threshold, government bares the secondary liability.

In implementing this model, the Commission recommends that the existing NSFAS model be replaced by a new Income Contingency Loan System. Should government be opposed to this model, the Commission recommends that government consider the “Ikusasa Student Financial Aid Programme”, an Income Contingency Loan Funding Model proposed by the Ministerial Task Team on Funding for Poor, Working Class and Missing Middle Students."