Commission of Inquiry Into Higher Education Report
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REPORT OF THE COMMISSION OF ENQUIRY INTO HIGHER EDUCATION AND TRAINING TO THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA 1 Introduction ....................................................................................................... 9 1.1 The start of the #Feesmustfall protest: the demands and the outcome ............................................................................................................ 9 1.2 The students’ demands .................................................................... 16 1.3 The consequences of the protest and determined increases ........... 20 2 The Mandate of the Commission .................................................................. 26 3 Higher Education and Training: Purpose, Policy and Historical Development and Funding ............................................................................. 32 3.1 The purpose of higher education ...................................................... 32 3.2 Higher education policy .................................................................... 34 3.3 The National Development Plan (NDP) ............................................ 36 3.4 The White Paper for Post-School Education and Training (PSET) (2013) ............................................................................................... 38 3.5 Early policy decisions on university funding ..................................... 39 3.6 Public or private benefit .................................................................... 42 3.7 Defining higher education and training for the purposes of the Commission ...................................................................................... 57 3.8 Post-school education and training (PSET): developing and maintaining the sector ...................................................................... 64 3.9 The PSET system ............................................................................. 66 3.10 The PSET sector .............................................................................. 67 3.11 The college sector ............................................................................ 67 3.12 TVET funding needs ......................................................................... 71 3.13 The university sector ........................................................................ 78 3.14 University funding ............................................................................. 79 3.15 Private higher education and training ............................................. 100 3.16 Conclusion ...................................................................................... 104 4 ‘Fee-free’ in the Context of Higher Education and Training ..................... 105 5 ‘Feasible’ ....................................................................................................... 107 6 Legal Considerations, including the Constitution ..................................... 107 6.1 The constitutional obligation in relation to higher education and training ............................................................................................ 107 1 6.2 The Constitution of the Republic of South Africa, Act 108 of 1996 . 110 6.3 Expression of the Constitution in government and ANC policy ...... 116 6.4 ANC policy decisions, 2007 to 2012 ............................................... 119 6.5 Fee-free Working Group ................................................................. 122 7 International Obligations ............................................................................. 125 8 Steps taken to Realise the Right to Accessible / Free Higher Education 134 9 Testimony on free education ....................................................................... 137 9.1 An overview of the testimony on free education ............................. 138 9.2 Government and statutory bodies’ testimonies .............................. 140 9.3 Students and student organisations ............................................... 148 9.4 Higher education institutions .......................................................... 164 9.4.1 Universities ....................................................................... 164 9.4.2 TVETS .............................................................................. 186 9.4.3 Private providers ............................................................... 190 9.4.4 Civil society groups, research bodies and individuals ...... 193 10 The Cost of Education: The Research Report on the Costing and Financing of the White Paper on Post-School Education and Training: September 2016 ............................................................................................ 206 11 National Student Financial Aid Scheme (NSFAS) ..................................... 210 11.1 NSFAS legislative and regulatory framework ................................. 210 11.2 Rules .............................................................................................. 213 11.3 Rules applicable to unversities ....................................................... 213 11.4 Means test to assess financial eligibility ......................................... 215 11.5 Implications of the NSFAS cap ....................................................... 217 11.6 Topslicing ....................................................................................... 217 11.7 Shortcomings of NSFAS ................................................................. 219 11.8 The NSFAS Student Centred Model .............................................. 220 11.9 Rules for NSFAS funding to TVET Students .................................. 225 11.10 Rules regulating other NSFAS sources of funding ......................... 226 11.11 Views regarding the NSFAS system .............................................. 227 11.12 Testimony by NSFAS ..................................................................... 232 11.13 Testimony to the Commission on NSFAS ...................................... 235 11.14 Governance and administration of NSFAS ..................................... 236 11.15 University financial aid offices ........................................................ 237 11.16 Means testing ................................................................................. 238 11.17 Insufficient funding .......................................................................... 239 2 11.18 Student success ............................................................................. 241 11.19 Collection of loans .......................................................................... 242 11.20 Loans and black tax ........................................................................ 244 11.21 Conclusion ...................................................................................... 245 12 Prioritisation of Higher Education and Training ........................................ 246 13 The Balancing Process ................................................................................ 248 14 The Historical National Budget and Future Financial Outlook ................. 248 15 Government Funding on Higher Education and Training as a Percentage of GDP ............................................................................................................ 259 16 State Subsidy in Line with Consumer Price Index (CPI) v the Higher Education Price Index (HEPI) ...................................................................... 262 17 Enrolments Outpace the Subsidy ............................................................... 263 18 The Appropriateness of Using GDP as a Measure to Assess the Level of Government Funding ................................................................................... 263 19 Government Spending on Higher Education and Training as a Percentage of State Budget ............................................................................................. 265 20 Improvements in the Budget ....................................................................... 268 21 Funding of Institutions in the Post School Education and Training Sector (PSET) ............................................................................................................ 271 21.1 Introduction ..................................................................................... 271 21.2 Regulatory framework .................................................................... 272 21.3 The Ministerial Committee for the Review of the Funding of Universities ..................................................................................... 275 21.4 Income sources of public higher education institutions .................. 279 21.5 First stream ..................................................................................... 279 21.6 Second stream ............................................................................... 285 21.7 Considerations when setting fees. .................................................. 286 21.8 Third stream ................................................................................... 290 21.9 Availability of third stream funding across all institutions ................ 291 22 Funding Framework for Government ......................................................... 292 22.1 Analysis .......................................................................................... 292 22.2 Critique of the funding formula ....................................................... 294 22.3 Steering mechanisms ....................................................................