FINANCIAL EXCLUSIONS IN A HISTORICALLY DISADVANTAGED INSTITUTION (HDI)
by
NONHLANHLA HERIEGLIETIAS MABUZA
MINI-DISSERTATION submitted in partial fulfilment of the requirements for the degree
MAGISTER EDUCATIONIS
in
EDUCATIONAL MANAGEMENT
in the
FACULTY OF EDUCATION AND NURSING
at the
RAND AFRIKAANS UNIVERSITY
SUPERVISOR : PROF TC BISSCHOFF CO-SUPERVISOR : PROF ESG GREYLING DECLARATION
I Nonhlanhla Herieglietias Mabuza declare that this research essay represents my own work in conception and execution. All sources that I have used or quoted, have been indicated and acknowledged by means of complete references. DEDICATION
I dedicate this work to my parents RAPHAEL AND MARIA MABUZA and my son LUVUYO NCEBA MHLANE
ii ACKNOWLEDGEMENT
This study would not have been accomplished without the generous contribution of many individuals. I wish to express my sincere appreciation to:
Prof. Tom Bisschoff and Prof. Liz Greyling for their expert guidance, encouragement and patience throughout the study. Their constructive criticism motivated me to complete this dissertation.
My parents, Raphael and Maria Mabuza, who encouraged me to enhance my studies.
My brothers, Magugu, Thabo, Themba and Pule, who were always available with vital help when I needed it.
My son, Luvuyo, who for most of his life, shared some of the attention with my studies.
My sister-in-law, Lindiwe Mabuza, for her understanding and unwavering support.
Thabo Sephiri, for being at my side in thick and thin.
To my friends, whose support and inspiration gave me courage to go on.
My colleagues, Kate Mazibuko and Nombini Nteyi, for their encouragement and support.
And last, but not least, I thank the almighty God for carrying me through to the realisation of this dream.
iii ABSTRACT
This research project deals with an investigation of the causes of financial exclusions at a Historically Disadvantaged Institution (HD!). Two different institutions of higher learning namely: the University of the North at Qwaqwa (UNIQWA) and the Rand Afrikaans University (RAU) were selected for the study. UNIQWA, as the Historically Disadvantaged Institution, and RAU, as the Historically Advantaged Institution.
Currently, the institutions of higher learning, especially, the historically disadvantaged institutions, are characterised by class disruptions that lead to retarded academic progress during most academic years, the main reason being financial exclusion faced by students in these institutions.
FINDINGS
From the interviews I conducted that included, among others, students, administrators, academics, management and a literature study, the following are some of the important findings of the research project.
Students and parents don't plan for their education. Students don't perform to their utmost best academically. Students don't seek information. Students don't prioritise their needs. Institutions don't seek sponsorship for students. Institutions are too lenient to students.
iv RECOMMENDATIONS
4 Students should work hard towards their studies. Students should build their character, for institutions and sponsors to invest in them. Students should seek information themselves, both inside and outside their institutions. Institutions should not register students without the stipulated fees. Institutions should build reserves for needy students. Institutions should not make political decisions that are not financially viable. The government should increase the National Student Financial Aid Scheme allocation. The government should consider canceling the debt incurred by the institutions of higher learning during the apartheid era.
The findings and recommendations of this research will hopefully provide a strong base upon which students, administrators, academics and management can improve the finance position of institutions of higher learning.
v OPSOMMING
Hierdie navorsongsprojek handel oor 'n ondersoek na die oorsake van finansiele uitsluiting aan 'n Histories-benadeelde Instelling. Twee hoer onderwys,instellings naamlik die Universiteit van die Noorde, Qwaqwa (UNIQWA) en die Randse Afrikaanse Universiteit is vir hierdie studie geselekteer.
Tans word van hoeronderwys instellings gekenmerk deur klasontwrigting wat lei tot vertraagde akademiese vordering gedurende die akademiese jaar, hoofsaaklik as gevolg van die finansiele uitsluiting van studente aan hierdie instellings.
BEVINDINGE
Voortspruitend uit die onderhoude wat ek gevoer het met studente, akademici, administrateurs en bestuur, asook 'n literatuurstudie wat onderneem is, het die volgende bevindinge na aanleiding van die navorsingsprojek aan die lig gekom:
Studente en ouers beplan nie vir onderwys nie. Studente presteer nie akademies tot hul uiterse beste nie. Studente vra nie inligting nie. Studente prioritiseer nie hul behoeftes nie. Instellings anderhandel nie vir borgskappe vir studente nie. Instellings is to toegeeflik teenoor studente.
AANBEVELINGS
Studente moet harder werk aan hulle studies. Studente moet karakterbou beoefen sodat instelling en borge in hulle sal bele. Studente moet self inligting soek, beide binne en buite hul instellings;
vi Instellings moet nie studente Iaat inskryf sonder dat hulle die voorgeskrewe fooie betaal het nie. Instellings moet reserwes opbou vir behoeftige studente. Instelling behoort nie politieke besluite te neem wat nie finansieel Iewensvatbaar is nie. Die regering moet die toewysing aan die National Student Financial Aid Scheme verhoog. Die regering behoort oorweging te skenk aan die afskrywing van skuld wat gedurende die apartheidsera by hodronderwys instellings opgeloop het.
Die bevindinge en aanbevelings van hierdie navorsing sal hopelik 'n goeie grondsiag verskaf, sodat studente, administrateurs, akademici en bestuur toestande in inrigtings van hoeronderwys sal kan verbeter.
VII LIST OF ACRONYMS
AF APPORTIONMENT FACTOR ANC AFRICAN NATIONAL CONGRESS BCSA BURSARY COUNCIL OF SOUTH AFRICA COUD CENTRE des OEUVRES UNIVERSITAIRES de DAKAR DSCI DISADVANTAGED STUDENTS COST INDEX DSI DISADVANTAGED STUDENTS INDEX FCS FULL COST OF STUDY HAI HISTORICALLY ADVANTAGED INSTITUTION HBI HISTORICALLY BLACK INSTITUTION HDI HISTORICALLY DISADVANTAGED INSTITUTION HED HEAD OF DEPARTMENT HOD HEAD OF DEPARTMENT LLB BACCALAUREUS LEGUM NCHE NATIONAL COMMISSION ON HIGHER EDUCATION NETF NATIONAL EDUCATION TRAINING FORUM NSFAS NATIONAL STUDENT FINANCIAL AID SCHEME RAU RAND AFRIKAANS UNIVERSITY SAPSE SOUTH AFRICAN POST-SECONDARY EDUCATION SAIRR SOUTH AFRICAN INSTITUTE OF RACE RELATIONS SASCO SOUTH AFRICAN STUDENTS CONGRESS SAUVCA SOUTH AFRICAN VICE CHANCELLORS ASSOCIATION TEFSA TERTIARY EDUCATION FUND OF SOUTH AFRICA TELP TERTIARY EDUCATION LEARNING PROGRAMME UNIQWA UNIVERSITY OF THE NORTH AT QWAQWA USA UNITED STATES OF AMERICA
viii TABLE OF CONTENT
PAGE Declaration i Dedication ii Acknowledgement iii Abstract iv Opsomming vi List of Acronyms viii
CHAPTER ONE: ORIENTATION 1.1 INTRODUCTION 1 1.2 PROBLEM STATEMENT 2 1.3 AIM OF THE RESEARCH 5 1.4 METHOD OF RESEARCH 5 1.4.1 Document analysis 6 1.4.2 Data collection 6 1.4.3 Data analysis 6 1.4.4 Population 7 1.5 DEMARCATION OF THE INVESTIGATION 8 1.5.1 University of the North at Qwaciwa (UNIQWA) 8 1.5.2 Rand Afrikaans University (RAU) 8 1.6 CLARIFICATION OF CONCEPTS 9 1.6.1 Financial exclusion 9 1.6.2 Financial aid 9 1.7 PLAN OF STUDY 9 1.8 CONCLUSION 10
CHAPTER TWO: LITERATURE REVIEW 2.1 INTRODUCTION 11 2.2 OVERVIEW AND BACKGROUND 11
ix 2.3 FUNDING OF HIGHER EDUCATION INSTITUTIONS 14 2.3.1 Principle of shared costs 15 2.3.2 Principle of equity and redress 16 2.3.3 Principle of development 16 2.3.4 Principle of efficiency, sustainability and quality 16 2.4 GOVERNMENTAL FUNDING PRACTICES 17 2.4.1 Formula funding 17 2.4.2 Budgetary funding 17 2.4.3 Full funding of all activities 17 2.5 GOVERNMENTAL CONTROL AND FUNDING MECHANISMS IN 18 OTHER COUNTRIES 2.6 STATE FUNDING IN OTHER COUNTRIES 19 2.6.1 Senegal 19 2.6.2 The Philippines 12 2.6.3 The United States of America (USA) 20 2.7 TYPES OF STUDENT LOAN PROGRAMMES 21 2.7.1 Mortgage type loan 21 2.7.2 Graduated nominal payment 21 2.7.3 Income contingent loan 21 2.8 THE MODEL OF FUNDING IN SOUTH AFRICA 22 2.9 WHO QUALIFIES FOR NATIONAL STUDENT FINANCIAL AID 23 SCHEME LOANS? 2.10 CRITERIA FOR ALLOCATIONS BY NSFAS TO TERTIARY 23 INSTITUTIONS 2.11 SUMMARY 25 2.12 CONCLUSION 25
CHAPTER THREE: EMPIRICAL DESIGN 3.1 INTRODUCTION 27 3.2 RESEARCH DESIGN 27 3.3 RESEARCH METHODOLOGY 28 3.3.1 Literature review 29 3.3.2 Field notes 29 3.3.3 Sampling procedure 29 3.3.3.1Selection of participants 30 3.3.3.2 Focus group interview guide 30 3.3.4 Individual interviews 32 3.3.4.1Selection of participants 32 3.3.4.2 Individual interview guide 32 3.4 DATA ANALYSIS 32 3.4.1 The process of data analysis 32 3.4.2 Preparing data for analysis 32 3.5 TRUSTWORTHINESS OF THE RESEARCH 33 3.5.1 Multiple methods of data collection 33 3.5.2 Building an audit trail 33 3.5.3 Working with a research team 34 3.5.4 Member checks 34 3.6 RELIABILITY 34 3.7 VALIDITY 34 3.8 CONCLUSION 35
CHAPTER FOUR: ANALYSIS AND INTERPRETATION OF EMPIRICAL DATA 4.1 INTRODUCTION 36 4.2 QUALITATIVE ANALYSIS 36 4.3 WHAT ARE THE CAUSES OF FINANCIAL EXCLUSION 37 AT YOUR INSTITUTION? 4.3.1 Socio-economic factors 37 4.3.2 Political factors 38 4.3.3 Ineffective financial management 39 4.3.4 Ineffective communication . 40 4.4 WHAT ARE THE CONSEQUENCES OF FINANCIAL 41 EXCLUSION AT YOUR INSTITUTION?
xi 4.5 WHAT IS THE SOLUTION TO FINANCIAL EXCLUSION? 42 4.6 INTERPRETATION OF THE EMPIRICAL DATA 43 4.6.1 Causes of financial exclusion at your institution 43 4.6.1.1 Socio-economic factors 43 4.6.2 Political factors 44 4.6.3 Ineffective financial management 45 4.6.4 Ineffective communication 45 4.7 CONSEQUENCES OF FINANCIAL EXCLUSION 46 4.8 SOLUTION TO FINANCIAL EXCLUSION 46 4.9 CONCLUSION 47
CHAPTER FIVE: FINDINGS AND RECOMMENDATIONS 5.1 INTRODUCTION 48 5.2 FINDINGS 48 5.2.1 What are the regulations pertaining to the payment of fees at institutions of higher learning 48 5.2.2 What are the causes of financial exclusion at institutions of higher learning? 49 5.2.2.1 Students 49 5.2.2.2 Parents 51 5.2.2.3 Institutions of higher learning 52 5.3 WHAT STRATEGIES DO HAIs EMPLOY IN ORDER TO MANAGE FINANCIAL EXCLUSION? 53 5.4 WHO IS AFFECTED BY FINANCIAL EXCLUSION? 53 5.5 RECOMMENDATIONS 54 5.6 LIMITATIONS OF THE STUDY 57 5.7 FURTHER RESEARCH 57 5.8 CONCLUSION 57 6. BIBLIOGRAPHY 58
xii LIST OF TABLES
2.1 GOVERNMENTAL CONTROL AND FUNDING MECHANISMS 18 4.3.1 SOCIO-ECONOMIC FACTORS 37 4.3.2 POLITICAL FACTORS 38 4.3.3 INEFFECTIVE FINANCIAL MANAGEMENT 39 4.3.4 INEFFECTIVE COMMUNICATION 40 4.4 WHAT ARE THE CONSEQUENCES OF FINANCIAL EXCLUSION AT YOUR INSTITUTION? 41 4.5 WHAT IS THE SOLUTION TO FINANCIAL EXCLUSION? 42
LIST OF ANNEXURES
ANNEXURE A
FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE UNDERGRADUATE STUDENTS OF THE RAND AFRIKAANS UNIVERSITY (RAU) 1
FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE UNDERGRADUATE STUDENTS OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA) 13
FOCUS GROUP INTERVIEW BETWEEN MS MABUZA AND FINANCIAL ASSISTANTS OF THE RAND AFRIKAANS UNIVERSITY(RAU) 29 FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE FINANCIAL AID OFFICERS OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA) 36
ANNEXURE B
INDIVIDUAL INTERVIEW BETWEEN MS MABUZA AND THE ACADEMIC STAFF OF THE RAND AFRIKAANS UNIVERSITY 1
INDIVIDUAL INTERVIEWS BETWEEN MS MABUZA AND THE HEAD OF A SCHOOL OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA) 10
INDIVIDUAL INTERVIEWS BETWEEN MS MABUZA AND THE ASSISTANT REGISTRAR: FINANCE OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA) 17
xiv CHAPTER ONE
ORIENTATION
1.1 INTRODUCTION
In the past, South Africa used education as a tool for discrimination. This practice was also visible in higher learning institutions. The establishment and existence of some institutions of higher learning was therefore politically inclined (Robbins, 1999a: 26). Many of these institutions catered for black students from disadvantaged communities and poor family backgrounds. Such universities were called bush universities and others historically black universities.
Students in these institutions could not raise registration fees, let alone study fees for the whole academic programme. Management of these institutions made the mistake to register students without the stipulated registration fee. This left the institutions with exhorbitant student debts.
Attempts to change the tradition of non-payment in these institutions, resulted in many students loosing their lives, increased attrition rates and retarded academic progress as a result of class disruptions caused by the students. It also caused other societal problems, for example, a decrease in delivering employable students, thus an increase in the unemployment rate. In one case, a student died when a mob of students were demonstrating and vandalising the university premises after 512 students were de-registered by the University of Durban- Westville. The university was closed indefinitely on the 17 th May 2000. The mid- year examinations had to be postponed due to student unrest caused by financial exclusion (Asmara, 2000:1; Modise, 2000). In another case, students were arrested following a protest at the University of the Western Cape. They were arrested because of a sit-in as a result of expulsion by university management because they could not pay their fees (BBC News, 3 February 1998).
1 South Africa's transition to democracy requires all existing practices in the institutions of higher learning to be reviewed and revisited to fit in with new policies. According to the South African Higher Education Act, no 101 of 1997 (Republic of South Africa, 1997:1ff), the government will transform, restructure and redress the past discrimination as well as respond to the needs of the public and communities served by the institutions. This can be done by providing equal access, democratisation, globalisation and by funding the institutions (Republic of South Africa Draft White Paper 3,1997:10), However, this is not done to the expectations of -the Historically Disadvantaged Institutions (HDIs), who were expecting their debts to be cancelled (Modise, 17 May 2000).
With regard to equal access, especially prospective students from poor backgrounds find it impossible to gain access to liberal and Afrikaner universities, as they are unable to secure registration fees for such universities. They are discriminated against on the basis of finance. The government's National Student Financial Aid Scheme (NSFAS) only assists students who are already registered at an institution (Asmal, 14 March 2000).
1.2 PROBLEM STATEMENT
According to my personal experience as a university student, the HDIs are characterised by class disruptions that lead to retarded academic progress during most academic years, the main reason being financial exclusion faced by students in these institutions (cf. Morris, 1998:1; Workers' Solidarity, 1999:1; Amupadhi, 1996:2; Amupadhi and Hess, 1996:1ff).
HDIs have failed to attract potential professional experts because of a lack of basic facilities such as libraries. This resulted in such experts resorting to Historically Advantaged Institutions (HAIs) in pursuit of their careers. The quality of students HDIs were producing, was thus questioned (Robbins, 1999b: 26).
2 According to Jones (1998:20), many employers and recruitment agencies commented negatively on the quality of degrees offered by HDIs such as the University of the North, Vista University and Fort Hare University. They also indicated that students from these institutions needed a further year of study to enrol for a second degree in order to write the Chartered Accountants Board examination.
The government has allocated a total of R50,71 billion to education for the financial year 2000/01, up from R47.8 billion in 1999. Out of this amount, only R6,2 billion was allocated to higher education institutions compared to the previous year's R7 billion. This government subsidy to the HDIs is a drop in the ocean. Professor Cecil Abrahams from the South African Vice-Chancellor's Association indicated that the cutbacks in the budget would make it extremely difficult for the institutions that are already struggling with deficits and huge student loans (Naidu, 2000:12). The already poor institutions will thus become even poorer (Workers' Solidarity, 1999:1).
The formula the government intends to implement in 2002, is not known because the government wants to get it right before being implemented. The current formula, known as South African Post-Secondary Education (SAPSE) where student populations, pass rates, number of postgraduate students and fields of study will determine the subsidy of institutions, is problematic (Robbins, 1999b: 27). The HDIs are faced with low student intakes every year (University of the North in Qwaqwa - UNIQWA, 2000: 9). HDIs pass rates are low, as is the number of postgraduates. In addition, large numbers of students have registered for humanities rather than natural sciences.
According to Professor Kader Asmal, students' debt in 21 universities and 15 technikons is almost R700 million (Naidu, 2000:12). The University of the North with R96 million owes the highest debt. This university as well as the University of Transkei is facing closure, due to the students' debt (Robbins, 1999a: 26).
3 The consequences will be that even more students will drop out, causing, among others: an escalating unemployment rate in the country; an escalating crime rate in the country; minimum production of professionals; demotivation of prospective students to pursue their careers; and prolonged duration of study.
The NSFAS, also called the Tertiary Education Fund of South Africa (TEFSA), is the only source of income at the HDIs. The National Department of Education funds this loan and bursary scheme. The amount allocated to every institution is determined by the following factors: number of Disadvantaged Students Index (DSO; and Full Cost of Study (FCS).
If the financial problems remain unsolved, many students will be left with no option but to leave institutions of higher learning because the fees are increased every year (Anon, 1991:4; Anon, 1995:6). Against this background, it appears as if the dilemma of this research can be condensed by means of the following research questions: What are the regulations pertaining to the payment of student fees at the institutions of higher learning? What are the causes of financial exclusions at HDIs? Which strategies do HAls employ to manage financial exclusions?
4 1.3 AIM OF RESEARCH
The general aim of the research is to investigate financial exclusion in a HDI. In order to achieve this aim, this mini-dissertation aims to:
Investigate the causes of financial exclusion in a HDI; and to determine what strategies can be adopted from HAls in terms of: financial management; budget: distribution and allocation to academically and financially needy students; sources of income other than the NSFAS; and strategies to address the issue of financially needy students and academically deserving students.
The focus of this research will be on the causes of financial exclusion in a HDI; the problems emanating from such causes and proposed strategies to be adopted from the HAls. The class disruptions caused by factors other than financial exclusion and the overall budget of the institutions will not be accounted for in this research. Only the budget relating to financial aid to needy and academically deserving students will be researched.
1.4 METHOD OF RESEARCH
A qualitative research method will be used for this research. This method allows participants to air their views without being controlled. According to (Creswell (1998:15) Mauch and Birch (1998:18) and Bryman and Burgess (1999:140), qualitative research deals mainly with statements and questions said in words, with detailed descriptions of the settings and events.
5 A case study, namely a specific HDI, will be used in this research. This will be helpful as a background to the development of current conditions and environmental interactions of one or more individuals. Groups in the institution will be observed, and their responses will be recorded and analysed (Mauch & Birch, 1998:117).
1.4.1 Document analysis
For the purpose of this research, relevant literature will be researched. This will include South African legislation, policy, acts, the constitution, the National Commission on Higher Education, regulations pertaining to student fee payments, journals, books and other relevant material to assist in this research. To keep abreast with current publications on the problem statement, newspaper articles will also be studied.
1.4.2 Data collection
Only two focus group interviews and four individual interviews will be considered. This method will be used because the selected participants share certain characteristics relevant to the research question. It will also help the researcher to gather a large amount of data quickly (Marshall and Rossman, 1995:84).
1.4.3 Data analysis
Data analysis will result from fieldwork where the whole setting and context relevant to the research will be observed and respondents interviewed (Bryman and Burgess, 1999:140; De Vos, 1998: 48). Collected data will be analysed immediately after data collection. Ideas will be based on their commonness. Big ideas will be grouped together, while also considering small ideas (Bryman and Burgess, 1999:140). Semi-structured interviews will be conducted with the aid of an audiotape. The outcomes will be transcribed. Interviews will be used, as they
6 will be conducted face to face with the relevant stakeholders mentioned hereunder. The researcher will be able to answer questions and direct the process where necessary (Chauke, 1998:11; Mauch and Birch, 1998:18; Silverman, 2000:45).
1.4.4 Population
The following are the respondents to be used in this research. They are selected because they share certain characteristics relevant to the research question.
Students
Only undergraduate, registered students will be relevant for this research. They are selected because they struggle financially with their first degrees. Three students from a specific HDI and three students from a selected HAI will be interviewed.
Administrative staff
Only financial aid officers or financial assistants will be considered for this research. They are directly involved with the students as far as bursaries and loans are concerned. Three officers from a specific HDI and three officers from a selected HAI will be interviewed.
Academic staff
Only one Head of Department (HOD) from a specific HDI and one HOD from a selected HAI will be considered, to determine if they provide financial aid to academically deserving and financially needy students in their respective faculties/schools.
7 Management
Only the Registrar: Finance from a specific HDI and one from a selected HAI, will be selected because they are well informed about the overall budget of their institutions' budgets.
1.5 DEMARCATION OF THE INVESTIGATION
In order to collect data, the research will focus mainly on two institutions, namely, the University of the North at Qwaqwa in the Free State Province and the Rand Afrikaans University in the Gauteng Province.
1.5.1 University of the North at Qwaqwa (UNIQWA)
This university is selected mainly for the following reasons: It is the Satellite University of the University of the North. It is a HDI, established in 1982 to cater mainly for black students from poor backgrounds. It continues to attract such students. It is located in the then homeland of Qwaqwa-Phuthaditjhaba.
1.5.2 Rand Afrikaans University (RAU)
This university is selected mainly for the following reasons: It is a HAI. It was established in 1967 to cater mainly for Afrikaans speaking students. Since recently it has attracted diversified students from diverse population groups.
8 1.6 CLARIFICATION OF CONCEPTS
1.6.1 Financial exclusion
According to Allen (1990:407), exclusion means to keep out from a place, groups or privilege. In this research, financial exclusion will imply that students are not allowed to continue with their academic programme due to financial constraints.
1.6.2 Financial aid
This is money in the form of grants, loans, or bursaries allocated by various donors or sponsors to academically deserving and financially needy students to assist them to meet their academic and financial obligations (Anon, 1999:1).
1.7 PLAN OF STUDY
In chapter 1, an overview of the background of the HDIs is provided. The problem statement also highlights the shortcomings of the HD's initiated by the Apartheid regime to frustrate the South African population. This research aims at identifying the causes of financial exclusion. By comparing one HAI with one HDI, it is hoped that the solution to the problem will be unveiled by using the institutions' respective strategies. Data will be collected at two universities, namely, the University of the North at Qwaqwa in the Free State and Rand Afrikaans University in the Gauteng province. Qualitative research methodology will be used, while structured interviews and observation will be utilised as data collection instruments. Concepts to be used throughout the research will be clarified.
9 The remainder of the research will focus on the following.
Chapter 2: Literature review
In this chapter, reference will be made to literature to establish what other countries fund tertiary education.
Chapter 3: Empirical design
In this chapter, the research instrument and empirical investigation will be dealt with. Respondents, biographical details, the research group and the questionnaires will be prepared for investigation.
Chapter 4: Analysis and interpretation of empirical data
In this chapter, empirical data will be analysed and interpreted.
Chapter 5: Findings and recommendations
In this chapter, findings and recommendations will be made, based on the empirical data collected.
1.8 CONCLUSION
Bearing the above in mind, chapter two will focus on the literature review that will inform and direct the research with regard to the causes of financial exclusion in a HDI. This will determine what strategies should be adopted from a HAI to alleviate the problem.
10 CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
Financial crises in higher education were and still continue to be a problem at South African institutions of higher learning. This is evident in escalating students' unrest in various higher education institutions. It led to a number of bitter incidences that took place at various institutions, such as the incident at the University of Durban-Westville where a student died when the police attempted to restore order. The Sowetan (2000:17) indicated that students demonstrate almost every week.
Chapter two will define financial exclusion at higher education institutions. The overall background of concerns voiced by different organisations prior to the 1994 era around financial crises at higher education institutions will be dealt with. The funding of higher education institutions regarding both the subsidies allocated by the government to different institutions as well as financial assistance to students will be discussed. Reference will also be made to other countries to establish how they address the problem of students' financial exclusions.
2.2 OVERVIEW AND BACKGROUND
It all started when concerned groups and organisations saw the need for the funding of students at higher education institutions. One of the organisations is the Bursary Council of South Africa (BCSA) under the Chairmanship of Mister Jack Klaas. This organisation felt that there was a need to discuss issues related to government funding in terms of subsidy as well as student funding in terms of bursaries and loans at higher education institutions. Approximately 150
11 representatives from a wide spectrum of interest groups involved in higher education, convened at the University of Cape Town from 24-25 September 1993. The committee comprised organisations from staff members, students, political, non-governmental organisations and donors (BCSA,1993:3).
The resolutions taken and accepted at the conference were the following:
A properly constituted Tertiary Education Fund of South Africa (TEFSA) should be drawn into the network of organisations. The BCSA should be mandated to establish a working group in consultation with interested parties. This group would consult with higher education institutions to gather information about needs, lobby the government for emergency and stabilisation funds and co-ordinate long-term strategy decisions regarding funding. The BCSA should draw on all representative organisations to staff its working groups. Students, funding and higher education institutions should co-operate fully. All representative organisations should cooperate in building a comprehensive database of information relevant to funding higher education. The BCSA would control the representatives to ensure that all interested parties have uniform access (BCSA, 1993:5).
According to BCSA (1993:5), the National Education Co-ordinating Committee proposals were accepted. They were that:
The state would provide emergency funding for students. The Historically Black Institutions (HBI's) should have access to a stabilisation fund. Loans and bursaries should be thoroughly investigated and debated. A loan system should be introduced in phases — with a combined bursary and loan scheme introduced first.
12 ♦ The subsidy formula for institutions should be urgently reviewed so that the bias towards Historically White Institutions (HWIs) will be reduced. ♦ The outcome of this BCSA conference should be fed into the National Education and Training Forum (NETF) (BCSA, 1993:5).
According to Makhura (1995:24) the South African Student Congress (SASCO) held a conference in 1992 to formulate a new policy on access, admission, funding and transformation. They realised that due to the South African economic climate the government could not afford to fully fund higher education. They concluded that the national scheme would solve the problem of students who are excluded from higher education institutions for not paying their fees and that the formula used by the government should be reviewed.
Professor Merlyn Mehl highlighted that there were three burning issues facing the South African higher education system, namely: access, fees and academic development (MacGregor, 1995:21).
Doctor Pundy Pillay who was the then education Ministry advisor, and had been researching student financing options, was of the notion that a loan scheme should be established in order to assist students at higher education institutions (MacGregor, 1995:23). Like the SASCO president Makhura, he indicated that students should also contribute to their study fees. The government could not foot the whole bill (Makhura, 1995:24).
In order to deal with the concerns and recommendations made by the above- mentioned organisations, the government established an advisory committee to investigate the higher education sector crises and to deal with campus disruptions at tertiary institutions. African National Congress (ANC) Deputy General—Secretary, Cheryl Carolus, headed this committee. This committee identified student fees as the cause of most campus disruptions that lead to
13 retarded academic progress. They indicated that there was a need for a National Student Loan and Bursary System (MacGregor, 1995:21).
2.3 FUNDING OF HIGHER EDUCATION INSTITUTIONS
After the 1994 elections, the government nominated a task group to look into the funding of higher education institutions. They had to investigate the distribution of funds to various institutions. This task group had to report to the National Commission on Higher Education. They first investigated the funding of higher education institutions by the previous government in order to improve such funding.
In the past, the government used a formula that had been in place since 1982. That formula was revised in 1993. It was used by white higher education institutions. HDIs were brought into the formula in 1985. Higher education institutions that were located in the then independent homelands received their funds from their parliament through a budget allocated to their respective parliaments (BCSA, 1993:15).
The formula used is the South African Post—Secondary Education (Sapse) 110 formula. In order to allocate funds to various higher education institutions, the government investigated student enrolment, pass rates, number of postgraduate students, enrolment in the Natural Sciences and research output (BCSA, 1993:16). It is envisaged that the government is considering using this formula by 2002 (Robbins, 1999b: 19-25).
Sapse has proven to have some shortcomings. This is evident in the problems faced by HDIs as compared to HAIs. The HDIs have a low student intake. Many students move to HAIs because of available student support services. Students can also secure jobs because of the HAIs' reputation of high standards (Jones, 1998:20).
14 Many students from disadvantaged communities, who attend HAIs, are from well to do families within those communities. These students can afford registration fees, unlike students at HDIs who cannot raise registration fees, let alone study fees for a full academic programme. HDIs have a low pass rate. This is because many students are from communities where resources conducive to learning are scarce, for example, libraries. Many students are registered for the Humanities and not for Natural Sciences while the number of postgraduates are low. This is because students have to seek employment in order to help their families and to educate other siblings.
In order to redress the disadvantages of the past, the National Commission on Higher Education with the mandate from the Minister of Education, started to investigate the basic principles that would serve as guidelines in the funding of higher education institutions (Republic of South Africa National Commission on Higher Education, 1996:1ff). They mention four key funding principles, namely:
principle of shared costs;
principle of equity and redress;
principle of development; and
principle of efficiency, sustainability and quality.
2.3.1 Principle of shared costs
According to the National Commission on Higher Education (Republic of South Africa, 1996:1ff), the costs of higher education should be a shared responsibility between the government, students and the public sector. This implies that the government should fund Higher Education by means of subsidies. The students should contribute towards their studies. It is argued that students should not pay
15 anything, but at the SASCO conference that took place in 1992, was proposed that students should contribute towards their studies (Makhura, 1995:24). The public sector could contribute to higher education by means of bursaries.
2.3.2 Principle of equity and redress
State funding of all institutions should be equal. Students from all walks of life should gain access to all higher education institutions. The institutions that used to benefit from the past should be subsidised accordingly.
2.3.3 Principle of development
Higher education should produce the human resources required by the country. Higher education institutions should be funded according to the relevant programmes, projects and research. The most needed human resources needed in any country are scientists and technologists. This is believed to have an impact at boosting the economy of the country. Higher education institutions should attempt to limit the number of students registering for Humanities. According to the current "size and shape" deliberations, certain percentages are allocated to Humanities (Social Sciences), Sciences and Economics. This will determine the standard (position) of institutions (among others).
2.3.4 Principle of efficiency, sustainability and quality
Funding should ensure that the higher education system operates efficiently. It should be an affordable system. After completing their studies, students should achieve the goals set for the fund. On the basis of the above principles, the government would be able to finance higher education institutions. In order to do this, the government investigated various funding practices to select the most appropriate funding practice.
16 2.4 GOVERNMENTAL FUNDING PRACTICES
2.4.1 Formula funding
This is a mechanical formula, which includes the following:
Input variable: full time equivalent student enrollments.
Output variable: student success rates and research publications.
According to this funding practice, the government subsidises institutions by taking into account the number of admitted students and the pass rate. Therefore, all institutions of higher learning are expected to submit a report stating the number of admitted students and statistics of graduates. This practice is currently used in the South African higher education system (Ziderman and Albrecht, 1995: 120).
2.4.2 Budgetary funding
Tertiary institutions submit their budgets to the government (Ziderman and Albrecht, 1995:121).
2.4.3 Full funding of all activities
Government departments accept responsibility for all the costs of some higher education institutions. No institutional budgets are submitted. Independent institutional accounts are prepared instead. This practice is used in the Senegalese higher education system (Ziderman and Albrecht, 1995: 121).
Table 2.1 refers to government control and funding mechanisms in higher education institutions in other countries.
17 2.5 GOVERNMENTAL CONTROL AND FUNDING MECHANISMS IN OTHER COUNTRIES
Table 2.1 Governmental control and funding mechanisms
COUNTRY: ADMISSIONS FINANCE: INTERNAL ALLOCATIONS (and type of funding governmental control institutional governmental control mechanism) over institutional dependence on over internal budgeting enrollments government for finance
Negotiation based Morocco high high high Algeria high high high Argentina high high medium Honduras high high medium Kenya medium high high Sudan medium high high Brazil medium high medium India medium medium high The Philippines medium medium medium
Input based France high high medium Sweden medium high high Nigeria medium high medium Norway medium high medium China medium high medium Indonesia medium medium medium Japan medium low medium
18 Vietnam medium low medium Ontario, Canada low medium low UK low medium low South Africa medium low low Japan (private) low low low
Performance based Finland medium high medium The Netherlands high high low Denmark medium high medium Israel medium low medium
Student based Chile medium low low (Ziderman & Albrecht, 1995:111)
When studying Table 2.1, it becomes clear that South Africa uses the input based funding mechanism under the formula funding practice. In order to ascertain the problems faced by South African higher education institutions, it should be determined what other countries are doing to curb the problem of financial exclusion. The focus will be on three countries, namely: Senegal, the Philippines and the United States of America (USA).
2.6 STATE FUNDING IN OTHER COUNTRIES
2.6.1 Senegal
In Senegal, the university system is funded entirely by the central government. There are no tuition fees or loan programmes. Extra-ordinary student support is provided in the form of the scholarship scheme administered by the minister of
19 higher education. Student support services are handled by the 'Centre des Oeuvres Universitaires de Dakar' (COUD). All students at Senegalese Universities are eligible for this scholarship. It covers highly subsidised meals, lodging, medical services and transportation. Students only contribute 16% of the above-mentioned social costs (Ziderman and Albrecht, 1995:15-16).
2.6.2 The Philippines
In the Philippines, higher education is divided into two sectors, firstly, public higher education and secondly, private higher education. Public higher education receives massive support from the state but students still spend large amounts of money on tuition fees. Loans are available from the state but only 1% of students avail themselves for that type of loan. Over 80% of students attend private colleges and universities. The state does not subsidise private institutions (Ziderman and Albrecht, 1995:16). This means that students and their families in the Philippines afford educational expenses without any aid from the state. This can be seen in the percentage of students who need financial assistance from the state.
2.6.3 The United States of America (USA)
The students' financial assistance programmes changed dramatically in the USA higher education system. The first recorded scholarship programme started in 1959 when lady Anne Moulson allocated 100 English pounds to support poor students attending colleges and universities (Van Dusen and Hearne, 1968:1). The education system of USA is currently characterised by revenue diversification. The public university sector receives less than half of its revenue from the government. Cost recovery is also present in the public university sector (Ziderman and Albrecht, 1995:16).
20 2.7 TYPES OF STUDENT LOAN PROGRAMMES
Student loan schemes have been developed in more than 50 countries worldwide. Every country uses its own loan programme system depending on the economy of that specific country. There are three types of student loan programmes.
2.7.1 Mortgage type loan
In this type of loan, repayment is made over a specified period. A fixed period payment is usually needed. Interest and maximum length of repayment is used to calculate the fixed payment (Ziderman and Albrecht, 1995: 62).
2.7.2 Graduated nominal payment
This type is mostly used in Chile. Students are expected to repay equal real amounts (Ziderman and Albrecht, 1995:62).
2.7.3 Income contingent loan
Countries such as Australia, Ghana and Sweden use this type of loan. Loans are repaid after the student graduates and has secured employment. In this case, loan repayment is determined by the annual income the student earns (Ziderman and Albrecht, 1995:62).
In South Africa, the income contingent loan is used in as far as loan recovery is concerned. This was proposed and recommended by the then advisor to the Minister of Education, Doctor Pundy PiIlay, who indicated that this model would be useful because high earners repay their loans more rapidly, and benefit less from the subsidy. The reverse is true of low earners (MacGregor, 1995:23).
21 There are different organisations that fund the higher education sector. HAIs benefit from many organisations, both locally and from outside the country, namely, the South African Institute of Race Relations (SAIRR), the Study Trust, and postgraduates, from the National Research Foundation. This is because of their standing reputation and image. For the purpose of this discussion, the focus will be on one funding model that could benefit all institutions of higher education.
2.8 THE MODEL OF FUNDING IN SOUTH AFRICA
In South Africa, the National Student Financial Aid Scheme (NSFAS) also known as Tertiary Education of South Africa (TEFSA) is the only major source of income at HDIs. TEFSA serves as a buffer between the government and higher education institutions. This system is also used in other countries such as Britain (Ziderman and Albrecht, 1995:115).
A buffer body is an organisation that stands between the government and the institutions to manage funding allocation decisions. It consists of University officials and technical expects. The main function of a buffer is to evaluate the needs of every respective institution in terms of funding (Ziderman and Albrecht, 1995:115).
The NSFAS was established in 1991, after extensive research indicated that there was a need for the scheme to alleviate the plight of financial exclusions at higher education institutions. The scheme contains Loan and Bursary components. The National Department of Education primarily funds it (NSFAS/TEFSA 2000b: 1).
The then Minister of Education, Professor Sibusiso Bengu, launched the NSFAS. An amount of R300 million was contributed to start the scheme. Professor Itumeleng Mosala indicated that the contribution was not sufficient for the number
22 of needy students at institutions of higher learning. He indicated that R2 billion was the appropriate amount to cater for poor students. An eminent group was established in order to raise additional funds for the scheme (Bell, 1996:20).
2.9 WHO QUALIFIES FOR NATIONAL STUDENT FINANCIAL AID SCHEME LOANS?
Students are expected to meet certain requirements in order to qualify for a loan as stipulated in the 2000 NSFAS booklet (NSFAS/TEFSA 2000b: 1). Students should be:
South African citizens; registered at a South African university or technikon; an undergraduate, studying for a first degree; or studying for a second higher education qualification, if necessary to practice in the chosen profession, for example, a LLB or HED; able to demonstrate potential for academic success; and financially needy.
2.10 CRITERIA FOR ALLOCATIONS BY NSFAS TO TERTIARY INSTITUTIONS
The amount received by TEFSA is distributed among institutions in terms of the number of disadvantaged students and full cost of study at each institution. The following formula is used in order to allocate funds (NSFAS/TEFSA 2000a: 1):
23 The Disadvantaged Students Index (DSI)
An index of the number of disadvantaged students (DSI) is determined by the following formula:
DSI = (no of African students x30)+(no of Coloured students x 20)+(no of Indian students x 10)
The Average Full Cost of Study (FCS)
The average full cost of study (FCS) is obtained from each institution. This figure reflects the average annual fee for residential accommodation, including meals, plus the annual tuition fee averaged over all courses of study.
FCS = TUITION FEE + RESIDENCE FEE
The Disadvantaged Students Cost Index (DSCI)
The product of the DSI and the FCS is the Disadvantaged Student's Cost Index.
The Apportionment Factor (AF)
The apportionment factor (AF), expressed as a percentage for each institution, is calculated as follows:
AF% = DSCI / SUM OF ALL DSCI's X 100
The allocation in Rands for each institution is the AF% of the total sum available for that institution.
24 2.11 SUMMARY
Much effort was made in order to alleviate the problem of financial exclusion at higher education institutions. Due to students' unrest that continues to occur at higher education institutions, especially at the HD's, it seems that the NSFAS is not solving the problem.
Financial assistance/aid would help more prospective students to be educated and to acquire lifetime enhancement of cultural and other experiences. More knowledge would be acquired to be utilised effectively in a democratic society. There should be more active participation of citizens, greater social effectiveness in terms of better understanding, mutual tolerance among individuals and groups, more effective preservation and extention of the cultural heritage, and greater ability of individuals and groups to accept and adjust to rapid change. More parents would be educated and would secure better jobs to assist their children with higher education fees (Mayhew, 1973:2).
The Chief Executive Officer of South African Vice Chancellors' Association (SAUVCA) send a circular to all higher education institutions requesting a record of the policies and practices of fee collection by institutional management (Kotecha, 2000:1). This follows a request by the Minister of Education, Professor Kader Asmal, in order to solve the problems of funding at higher education institutions.
2.12 CONCLUSION
Bearing the above in mind, chapter three will focus on the empirical design of this research. Qualitative research methodology will be used as stipulated in chapter two. The focus will be on a literature review, field notes, individual and group interviews. The process of data analysis and preparation of the data for analysis
25 will be dealt with. Trustworthiness of the research will be proven by reliability and validity processes.
26 CHAPTER THREE
EMPIRICAL DESIGN
3.1 INTRODUCTION
In the previous chapter, the focus was on the literature study, where the empirical research was formulated.
Chapter three will thus focus on the empirical research and will elaborate on the empirical design. Qualitative research methodology will be used as stipulated in chapter one. I will also focus on the literature review; field notes, individual and focus group interviews. The process of data analysis and preparing the data for analysis, will also be dealt with. Reliability and validity will prove trustworthiness of the research processes.
3.2 RESEARCH DESIGN
According to Vockel (1983:356), research design is the systematic scheduling of times at which treatments are to be administered to subjects and when observations are made of the performance of the subjects. The research design is developed from the research problem (Mouton and Marais, 1990:107). The research problem guides the researcher towards the research design that will best fit the research. The research design serves three major purposes, as stipulated by Marshall and Rossman (1995:38):
It presents a plan to conduct the study. It demonstrates to the reader that the researcher is capable of conducting the study. It should preserve design flexibility, being a hallmark of qualitative research methods.
27 3.3 RESEARCH METHODOLOGY
As stipulated in chapter one, a qualitative research methodology will be used in this research. As this research is about people, this method fits best with social processes (Allan and Skinner, 1991:179). The constant comparative method will be used during data analysis. This is a non-mathematical method that identifies themes and patterns in qualitative data (Maykut and Morehouse, 1994:176). The following reasons are the rationale for choosing this method as indicated by Mauch and Birch (1998:16).
The qualitative research method is empirical and not based on theory. It relies on observation or experimentation. The researcher gathers face-to-face information from the respondents. It follows the principle that experiences form the primary source of scientific knowledge. The respondents form the primary source that enables the researcher to gather first hand information. It encompasses several forms of the investigation. The researcher uses various data collection methods to collect data. This can, among others, include reports of participant observation or texts of in-depth and relatively unstructured interviews. It involves understanding of the phenomena under study through participant observation.
The primary objective is to gain knowledge (data) from the subjects' frame of reference. The qualitative research method requires that the researcher engages with the person and events and that the audience be studied as an integral part of the study process. It seeks to provide full and accurate descriptions of phenomena in all their complexity. The qualitative research method attempts to discover and show the assumptions that underlie events or actions. It uses natural settings as primary data. It deals mainly with statements couched in words and with detailed descriptions of settings and events. Unlike the quantitative research method, the qualitative research method deals with small samples and their uniqueness. I will only interview three students from
28 RAU and UNIQWA respectively. The findings will be based on the information gained from these respondents.
3.3.1 Literature review
In chapter two, I used written material to create a framework for the research. I referred to books, magazines, journals, acts, constitutions and newspaper articles in order to develop the research design.
3.3.2 Field notes
The qualitative research method allows the researcher to collect data in the subjects' own settings. I will use both UNIQWA and RAU settings in order to conduct the research. Field notes will be taken by means of a tape recorder where words, events and settings described by the subjects or respondents will be transcribed into a readable and understandable narrative style (Strauss and Corbin, 1990:22; Maykut and Morehouse, 1994: 122).
3.3.3 Sampling procedure
I will use a judgemental sampling procedure. As this sampling procedure is based on random sampling, it tends to be representative. This sample is selected because I will select the participants or respondents on the basis of who I regard as an average person (Bless, 1995:95). This will be used specifically in the selection of students. Three undergraduate students will be selected from the above-mentioned institutions respectively. They will represent a subgroup of the total student population. This subgroup thus serves as a barometer or a majoring stick of the population. Observation will be restricted to the selected group of students and conclusions drawn from the collected data will be generalised to the total population (Ackoff, 1965: 118-119).
29 3.3.3.1 Selection of participants
In chapter one, I indicated that the participants selected for the purpose of the study share certain characteristics and responsibilities (Mouton, 1996:160). Students were selected because they are registered learners of the stated institutions and are directly affected by financial exclusion. Financial assistants or financial aid officers were selected because they are permanent staff members employed by the stated institutions and are directly involved with the students in terms of bursaries and loans. Under management, the researcher selected the Registrars: Finance. They were selected because they are permanent staff members employed by the stated institutions and are knowledgeable of financial management. They have the skills and expertise of drawing up and interpreting the overall budget of their respective institutions. Under academic staff, the heads of schools were selected because they are permanently employed by the stated institutions and conduct the lectures. They are able to identify students who are academically deserving and who need financial assistance in order to complete their studies. They are knowledgeable of the criteria used by their respective faculties to identify and assist students who are academically deserving and financially needy.
3.3.3.2 Focus group interview guide
The interview guide is a brief series of questions used by the researcher to guide the group's conversation (Maykut and Morehouse, 1994:107). The focus group interview can be found in annexure A. Three basic questions will be asked during the interviews. Follow up questions will emanate from the respondents' answers. The three questions are as follows:
What do you think are the causes of financial exclusion at your institution? What are the consequences of financial exclusion at your institution?
30 3. What do you think are the solutions to financial exclusion at your institution?
We brainstormed on the causes and consequences of financial exclusion. The brainstorming process emanated from the literature review in chapter two. We came up with the following during the brainstorming session:
We grouped the ideas according to categories based on their commonness.
1. SOCIO-ECONOMIC FACTORS
Poverty. Culture of non-payment. Poor financial planning.
2. INEFFECTIVE FINANCIAL MANAGEMENT
Reserves for deserving students. Bad allocation of monies. Poor financial planning. Poor management of fees.
3. COMMUNICATION
Ignorance. Lack of communication between staff and students. Dissemination of information.
31
3.3.4 Individual interviews
3.3.4.1 Selection of participants
I will use individual interviews with the Registrars and Academics. This will be applicable to both RAU and UNIQWA respectively.
3.3.4.2 Individual interview guide
The Registrars: Finance are selected because of their experience in financial matters of their respective institutions. The academics are selected because they are able to identify students who are academically deserving and to provide assistance to the financially needy in their respective faculties. The individual interview guide can be found in annexure B.
3.4 DATA ANALYSIS
3.4.1 The process of data analysis
This research will focus on the inductive data analysis approach, allowed by the qualitative research method. The hypothesis is not predetermined. It emanates from the collected data.
3.4.2 Preparing data for analysis
The constant comparative method will be used during data analysis. All collected data will be transcribed and photocopies will be made. Data will be coded according to commonness. It will then be unitised, to categorize the meaning and actions of the participants. The categories will then be refined.
32 The relationships and patterns across categories will be explored. Integration of data yielding an understanding of people and settings will be studied. Thereafter recommendations will be made, and the data will be analysed and interpreted (Maykut and Morehouse, 1994:134,Silverman, 2000:179).
3.5 TRUSTWORTHINESS OF THE RESEARCH
Trustworthiness refers to confidence in the reported outcomes or research findings (Maykut and Morehouse, 1994:145). The following aspects will increase trustworthiness in the researcher's findings.
3.5.1 Multiple methods of data collection
In this research, I will use multiple methods of data collection in order to build strong research credibility. I will use semi-structured interviews coupled with observations and document analysis. This multiple method of data collection is called triangulation (Bell, 1993:64). Triangulation is an attempt to get a 'true' fix on a situation by combining different ways of looking at it or different findings (Silverman, 2000:177).
3.5.2 Building an audit trail
I will relate the data collection methods and data analysis to guide the reader through the research. The constant comparative method will also be used in order to ensure trustworthiness of the research. This will be done by referring to the raw data, interview transcripts and field notes gathered by the researcher during the interviews.
33 3.5.3 Working with a research team
To ensure trustworthiness of the research findings, I will keep record of the audit trail.
3.5.4 Member checks
I will ensure that the information to be published had been double-checked with the respondents to ascertain if what is written is the true reflection of what was uttered. This is also called respondent validation (Silverman, 2000:177).
3.6 RELIABILITY
Reliability is the degree of consistency. It is when the instances are assigned to the same category by different observers or by the same observer on different occasions (Silverman, 2000:175). The responses the researcher will receive from the respondents should be the same whenever or wherever the research is conducted (Silverman, 1997:117). Reliability is influenced by four variables, namely: the researcher, the participants or respondents, the measuring instrument and the research context or the circumstances under which the research is conducted (Mouton and Marais, 1990:79; Bell, 1993:64).
3.7 VALIDITY
This is the extent to which an account accurately represents the social phenomena to which it refers. It refers to the explanation given by the respondents whether true or false in terms of what is happening in real life situations. It should measure what it is supposed to measure. This will be supported by the data that the researcher has collected (Hammersley, 1990:57; Bell, 1993:64).
34 Both internal and external validity will be dealt with. I will ensure that the collected data will be correctly interpreted and understood. The research findings will also be generalised to improve the situation at institutions of higher learning as far as financial exclusion is concerned.
3.8 CONCLUSION
Bearing the above in mind, chapter four will focus on the interpretation of the data and the data analysis, on which the recommendations will be based. The data will be analysed by using the constant comparative method. Ideas will be based on their commonness. Big ideas will be grouped together while small ideas will also be considered.
35 CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF EMPIRICAL DATA
4.1 INTRODUCTION
In chapter three, the data collection procedure was discussed. Qualitative methodology was used because it is based on a naturalistic phenomenal philosophy. This approach assumes that multiple realities are socially constructed through individual and collective definitions of the situations (McMillan and Schumacher, 1993:14).
4.2 QUALITATIVE ANALYSIS
Qualitative analysis is a systematic process of selecting, categorising, comparing, synthesising and interpreting data to provide explanations for the single phenomenon of interest (McMillan and Schumacher, 1993:48). To provide an explanation of the causes and consequences of financial exclusion, interviews were held at two different institutions. Both group and individual interviews were conducted. I interviewed the students, administrative staff members, academics and senior management.
During the interview process, interviewees indicated areas of concern, as indicated in chapter two. The outcomes were grouped into the following categories: socio-economic factors, political factors, ineffective financial management and communication.
In this chapter, these categories will be used for a synthesis and interpretation of data.
36
4.3 WHAT ARE THE CAUSES OF FINANCIAL EXCLUSION AT YOUR INSTITUTION?
Socio-economic factors
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39 . ms a) 6 C a) E = .
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. 4.3.4 Ineffective communication
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40 XI 1 z ,,,, c 0 a) O. 0 42) 3 to 6 i
WHAT ARE THE CONSEQUENCES OF FINANCIAL EXCLUSIONAT YOUR INSTITUTION?
I ACADEMICS ADMINISTRATORS', MANAGEMENT • -;, rSTUDENTS•• .• i r rr i, , , , i rr ; 0 -0 :c -e u) , -a co :— Z .0 2 .. Z ...7. =
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.c
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= TD .0 - 173 :L.) -.--. 4.. .a F -..= 5 as CD as a a. = ..... a) C c E E a U) § o = .—_ - I ' . -- - -
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_ 0
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— j3 /Li 8 8 0 2 0 E a) =
U) S THE SOLUTIONTO FINAN CIAL EXCLUSION?
I ACADEMICS , ADMINISTRATORS MANAGEMENT STUDENTS cl_ .c -3 - - "0 - _c aCI o .0 -0 _o _g_ -?- 1:/ .0 13 .0 Q O . 0_ a a) . E) u) o 0 0 ■ 8 as w C kl c ci w U) a) E 0 w 0 2 cow ... = OPT, ti) co 03 2 CD 5 0 C = > ,. 2
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a)
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• v . _ 0-0 i . 4 -G .0 .5 12 - u) 3 ai. ... a. to u) C 0 C 0 C a) c Z 5 L■ u 42) E 0) C = - i; •
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= . . . 47. -o=" .s. ' c 0 o 0 0 ch u 2 ci. ca co .... o ,_ = > 2 o U) c co c E a) ) - ,
V ._ 4= -'-' .— < .0 a) 2 CD a) c u) 0 CD a) c co u) 0 c uf o as CO o c co = • c c — co --. S§ 0 .., ,-,
V -- . " - _c - . v) 03 c 6 a) C c7) to a) a) > = a) 0 ic Cl) T6 a 0 o u) 0 m 4 i
_co - .0 5. W c E 5 6 ° " a) 2 m
6 co a. o c 2 6 - 4.6 INTERPRETATION OF THE EMPIRICAL DATA
4.6.1 Causes of financial exclusion at your institution
The respondents' answers were divided into categories as follows:
4.6.1.1 Socio-economic factors
Most answers reflected that socio-economic factors contributed to students and parents not being able to meet the financial obligations of the institutions of higher learning. a. Parents
Parents are not able to meet the financial obligation of the institutions of higher learning, as they are unemployed. They are from communities that are poor where they could not secure jobs. Parents are not able to plan for their children's education, as they are not educated. They do not know what is expected of them. They send their children to the institutions of higher learning hoping that they will be assisted with bursaries or loans.
Parents who work and are educated do not invest in their children's education. They prefer to buy expensive furniture and cars. When we (financial assistants) look at their salary slips, we find that they pay exhorbitant amounts towards insurance policies, for instance, life cover, funeral cover, etc., but do not invest at all for the education of their children. Parents tend to pay for students who are at the HAI's and not at the HDI's.
43 b. Students
There were also problems created by students. All forms of financial assistance need students to perform well academically. Most students, who are financially excluded, do not perform well academically. They do not prioritise their needs. They buy accessories such as cell phones and fashionable clothes. Students do not seek information related to bursaries and loans available. They wait for sponsors to approach them.
Students who have money take advantage of those who cannot afford to pay. They are ignorant. Others do not even know where the financial aid offices are located. Should they be given a chance of registering without payment, they do not honour their agreement with management. Students sign debit orders knowing very well that they will not be able to pay. They abuse the leniency of the institution.
Students do not want to be seen applying for a loan. They do not want friends to know that they are financially needy. They feel that applying for financial assistance is for poor students and do not want to admit that they are poor and financially needy. Others feel that because the unemployment rate is high, they will not be able to repay the loan and will be reported to the credit bureau before they start working.
Most of the allegations of students are based on misconceptions. According to my knowledge as a financial aid officer, all students who are performing well, although without distinctions, will be assisted financially.
4.6.2 Political factors
In the past, institutions of higher learning were not equally subsidised. The resources were not equally distributed. Most blacks do not qualify for bank loans. Students flocked to the institutions of higher education as the government promised them free education. There is no legislation indicating that students will be provided with free education at institutions of higher learning in South Africa.
Students do not pay as they were born and raised in communities that did not pay for their services. They continue with the struggle in a culture of non- payment. Students forget that non-payment for services was a strategy to show the previous government the frustrations that were created by apartheid.
4.6.3 Ineffective financial management
Management allows students to register without paying. Institutions look to the government for funding - they do not look for sponsors. They do not market their institutions to attract outside sponsorship. Management does not stick to their decisions and are too lenient with students. They make political decisions that are not financially viable. The HDIs have huge financial deficits, as they allow students to register without paying.
4.6.4 Ineffective communication
There is no effective communication between students and the financial aid officers. Information with regard to available financial assistance should be sent to students with their letters of admission. This is contrary to what other students said. Some students indicated that were ignorant about the financial aid available. They are informed about financial assistance during orientation and financial aid officers disseminate this information to students via notice boards.
There is no effective communication between financial aid officers and management. Decisions are made top-down. There is no consultation at all. The community is not involved in decision-making.
45 4.7 CONSEQUENCES OF FINANCIAL EXCLUSION
There was a general feeling that the consequences of financial exclusion at the institutions of higher learning have a negative effect both students and society. Unrest among students could develop, and this will lead to vandalism of property. It is clear that there will be a high dropout rate causing a high rate of unemployment. The crime rate will also be high. Students will not be motivated, and this will affect their performance. A diminishing labour force market and skills shortage will be evident. Communities will not be developed.
It was also evident that the number of students at the institutions of higher learning will diminish. This will have an effect on staff, and management will be left with no option but to institute retrenchment procedures. Staff will opt for institutions where there is stability.
4.8 SOLUTION TO FINANCIAL EXCLUSION
During the interviews, it was indicated that there is a need for co-operation between students, parents and institutions. Students need to be honest. Those who can afford to pay must do so. They should not take advantage of those who cannot pay. Students should study closer to their homes for accommodation purposes. They should seek financial assistance outside their institutions. Students must build a character in which stakeholders can invest. Students and parents must be fully informed beforehand about the composite fee of the course for which students intend to register. They should also be informed about available financial assistance.
Parents should be educated by the institutions. This can be achieved by involving them in their children's education. Decisions taken by the institutions should be communicated to parents. Families with more than two students at
46 tertiary level should be given a discount. Working parents should pay their children's fees.
The responses pointed overwhelmingly to the fact that the institutions should engage themselves in aggressive fundraising campaigns in order to increase sponsor numbers. They must provide student academic programmes to counsel students and help them with study skills. Policies should be flexible. Cases where students are unable to pay should be considered on merit.
The NSFAS should be lenient. They should assist students with registration fees and accommodation outside the institution. This was also based on a misconception, as NSFAS does cater for outside accommodation. It is up to the institutions to accommodate students who are not residing at the institutions.
4.9 CONCLUSION
In this chapter, I analysed the empirical data collected by means of semi- structured interviews. From the above exposition, it is clear that financial exclusion has a negative effect on the society, students, parents, institutions and the government. Chapter five will thus deal with the findings and recommendations.
47 CHAPTER FIVE
FINDINGS AND RECOMMENDATIONS
5.1 INTRODUCTION
Chapter four dealt with the analysis and interpretation of empirical data. It is on this information that the findings and recommendations will be based. Chapter five thus deals with findings and recommendations that are informed by the research findings. The limitations and the need for further research will also be highlighted.
5.2 FINDINGS
The findings of this research are presented in line with the problems, aims of the research project and the questions posed in chapter one (see par. 7: 1.2). This was acquired by means of a thorough literature study throughout the research process, observations and interviews during the research project.
5.2.1 What are the regulations pertaining to the payment of fees at institutions of higher learning?
All institutions of higher learning have policies to guide them with respect to the payment and collection of fees. This information is issued to students as part of the rules and regulations of the institutions. All students are expected to pay registration fees at the beginning of every academic year. The policies also provide a breakdown of payments received and of any outstanding balance still owed by a student. This information is communicated to the student during the registration process, and the student signs that he/she has received and understands the information provided. Occasionally, reminders are sent to students to effect payment of outstanding balances.
48 5.2.2 What are the causes of financial exclusion at institutions of higher learning?
According to the information gathered during the interviewing process, I found that all the stakeholders detrimentally affect the financial exclusion at the institutions of higher learning. This includes, among others, students, parents, institutions of higher learning themselves and the government.
5.2.2.1 Students
Some of the responses gathered from students were based on misconceptions.
Students flocked to institutions of higher learning as the government promised free education (see table 4.3.2). The government did not promise this. What the government did promise was equal access to institutions of higher learning, meaning that no student will be discriminated against at any institution of higher learning (see par. 2: 2.3.2).
Students are not able to secure financial assistance, as sponsors are not willing to invest in black institutions. Bursaries discriminate and, as a result, more whites are assisted with bursaries. Fewer black students than white students qualify for bank loans (see table 4.3.2). It is envisaged that students do not seek financial assistance both inside and outside of their respective institutions of higher learning.
Apart from being from poor family backgrounds and communities, students do not plan. They do not seek information before registering at the institutions of higher learning (see table 4.3.1).
Students do not apply themselves to their studies and do not perform to the best of their abilities. Some students register in wrong fields and, as a result, do not
49 perform well. They are therefore not able to secure financial assistance (see table 4.3.1).
Students abuse the leniency of the institutions of higher learning. Those who have money take advantage of those who do not (see table 4.3.1). There are students who have money at the beginning of the year for the stipulated fees. However, they tend to hold back the money until management agrees to register students who do not have money. Although students sign agreements for debit orders and instalments with their respective institutions of higher learning, they do not honour these agreements (see table 4.3.1).
Students do not prioritise their needs. They buy material things such as cars, cellular phones and fashionable clothing, rather than paying for their studies (see table 4.3.1). Their rooms contain expensive accessories such as exclusive bedding, refrigerators, television sets and music systems.
Students are ignorant of financial assistance available to them, although they are informed of this during the orientation process and on notice boards (see table 4.3.1). Towards the end of the year, however, students apply for financial assistance. They even confess to not knowing where the offices for financial aid or assistance are located.
Owing to the current high unemployment rate, students are afraid to apply for study loans. They fear that they will incur bad credit records, as they may not be able to find jobs after their studies and will therefore not be in a position to repay these loans (see table 4.3.1). This is also based on misconception. Students are only expected to pay once they have secured employment. Attached to their account statement from NSFAS, students are requested to complete a section to indicate whether he/she is still studying, has completed his/her studies and is unemployed or employed. If a student is employed, payment is requested.
50 Students do not want to accept the fact that they are financially needy. They do not apply for study loans as they are afraid of what other students will say (see table 4.3.1). Students regard a loan from NSFAS as a loan for very poor people and do not see this as a remedy for their financial neediness.
Students are using the old political strategy of a culture of non-payment (see table 4.3.2). They are not used to paying for any services rendered to them. It is difficult for politicians to instill in students a culture of payment, as was encouraged through campaigns such as Masakhane, where the government tries to encourage people to pay for services.
There is a lack of both education and knowledge in students and parents. They do not know what is expected of them when applying for admission to the institution of higher learning (see table 4.3.1).
Unstable family relationships, such as parents divorcing, could affect students' academic performance detrimentally. They are therefore not able to secure financial assistance (see table 4.3.1).
5.2.2.2 Parents
Apart from being unemployed, many parents do not plan for the education of their children. They would rather spend their money on expensive cars, housing and furniture, and do not invest in the education of their children (see table 4.3.1). When studying their payslips it becomes clear that they spend a great deal on policies, rather than investing in their children's education.
Parents do not participate in their children's education. They place this responsibility on the government and on the institutions of higher learning (see table 4.3.1).
51 Parents also use past political strategies, such as the culture of non-payment, to avoid the payment of fees (see table 4.3.2).
5.2.2.3 Institutions of higher learning
The biggest mistake made by institutions of higher learning is to register students without first receiving payment for studies. They are too lenient towards students and take political decisions that are not financially viable (see table 4.3.1).
Institutions of higher learning do not market their institutions to investors and therefore do not attract sponsorships. The only major source of financial assistance available is NSFAS, a national government organisation which assists financially needy and academically deserving students (see table 4.3.1).
Institutions of higher learning were not equally subsidised by the previous government and consequently not managed properly (see table 4.3.2). Resources were also not equally distributed among the institutions of higher learning (see table 4.3.2.). Employees of institutions of higher learning are not sufficiently equipped to develop and implement fundraising strategies.
The policies of the institutions are inflexible. Students with genuine problems should be accommodated (see table 4.5). There are students who cannot afford the registration fees, let alone the fees for the whole academic year. The institutions of higher learning de-register students without investigating the financial situation of genuine needy cases. Policies are endorsed without consulting the community. Parents should be aware of the costs involved before they send their children to the institutions of higher learning (see table 4.5). However, decisions are only taken by top management, which does not cater for other structures of the community.
52 5.3 WHAT STRATEGIES DO HAIs EMPLOY IN ORDER TO MANAGE FINANCIAL EXCLUSIONS?
Students are not permitted to register without payment of the stipulated registration fees.
Students are not permitted to re-register without first paying any outstanding fees. Students should have a zero balance upon re-registration.
Should a student not pay within a stipulated period of time, the institution: will hand the student over to the attorneys, or de-register the student, or will not issue the student's examination results to him/her.
Institutions of higher learning are able to offer sponsorships to students because of their good reputations. Sponsors invest in these institutions and had invested long before the current problems arose.
5.4 WHO IS AFFECTED BY FINANCIAL EXCLUSION?
According to my assessment, all the stakeholders in the institutions of higher learning are affected by financial exclusion. This includes among others, students, parents, and the institutions of higher learning, society and the government.
Students are left with no option but to leave higher education. This results in a loss of both financial and human resources. The national government currently spends about R1,3 billion on dropout students (Mamaila, 2001:1). These funds could rather be used to improve other structures of society, such as building low- cost housing for homeless people.
53 Decreasing student numbers at institutions of higher learning results in such institutions facing the possibility of having to retrench staff members because of cuts in government subsidies. Money is also wasted on repairing damage to property caused by students during unrest.
Society is also affected because of the high crime rate. Taxpayers' money is being wasted on criminals in jail and for the renovation of buildings destroyed during student unrest.
5.5 RECOMMENDATIONS
Based on the findings of this research, my recommendations are as follows:
No student should be permitted to register without prior payment of the stipulated fees. Those who dishonour agreements between themselves and the institution should not be allowed a second chance (see table 4.3.1). Students should not be permitted to re-register if any fees are outstanding. The financial statement should reflect a zero balance before a student can re-register (see table 4.3.1).
It should be compulsory for students to provide proof of financial assistance. The NSFAS should be the alternative option to consider should a student not qualify for a bursary (see par. 2: 2.8). There should be effective communication between the institution and the students. Students should at all times be reminded about financial assistance available to them throughout the year.
Foundation courses for all first year students should be compulsory, for example, the Tertiary Education Learning Programme (TELP). This type of programme should include student academic programmes or academic support programmes to help students cope with university life (see table 4.5). As students come from all walks of life, they should be assisted with programmes to help them adjust to their studies and to life outside the classroom, for example, students who have
54 lived with their parents for most of their lives and now have to fend for themselves. To some students this adjustment is difficult and they need assistance, as this may affect their academic performance. Others from high schools are not used to semesters, and they should be assisted to adjust to the situation.
Students need to be honest to themselves, parents and the institutions of higher learning. They should not abuse the leniency of the institutions of higher learning (see table 4.5). Those who have money should pay in order to help genuinely needy students to be catered for by the institutions of higher learning.
Students should build personal character, so that institutions and sponsors will invest in them (see table 4.5). Most sponsors do not invest in institutions where there is instability. They feel that they are wasting their money and would rather donate their funds to institutions where there is stability.
Students should only be permitted sponsorships that will cover their fees for a particular academic year. No credit balances should be reimbursed to students, as these funds could be used to assist other needy students (see table 4.3.2). Some students receive more than two bursaries, with a credit of about R20 000.00. Students should ensure that the bursary they have received covers their first year costs so that additional bursaries can be used to assist other needy students. Many students receive exhorbitant amounts of credit.
Institutions should not dwell on what happened in the past and should actively seek sponsorships. They should refrain from making political decisions that are not financially viable (see table 4.5). It is well known what happened in the past with most historically disadvantaged institutions. Institutions should move on and rebuild their institutions. The government should consider cancelling debt incurred by students during the apartheid era (see table 4.3.2).
55 Institutions should be engaged in aggressive fundraising and start building reserves for needy students. They should increase the number of sponsorships by rather granting loans than bursaries, as these reserves could be recycled among future generations (see table 4.5). There are sponsors, for example Kagiso Trust, whose reserves were tapped dry as they issued bursaries instead of loans to students. Access to institutions, with the help of banks, for example, should be created. Most students are from families that do not meet the requirements of these financial institutions. Students are discriminated against in this service. The institutions of higher learning could do this with assistance from government (see table 4.5).
Institutions should assist students who do not perform well because of traumatic experiences in which they were involved. A counselling centre should be established to help them cope with their studies (see table 4.3.3). There are students who underwent traumatic experiences. However, there is no single sponsor who deals with these students. All sponsors need students to perform well. If not, sponsorship is withdrawn without investigating the cause of the problem.
The NSFAS should assist students with registration fees. Some prospective students are excluded even before entering the system (see table 4.5). If the government is really committed to equal access, students should be assisted with registration fees. Some students are poor and have outstanding academic results.
Government departments should employ students, especially those assisted by the NSFAS, so that they are able to repay loans granted to them (see table 4.3.3). This was done in the past, where students, who were financially assisted by government, especially at the colleges of education, were appointed in posts to serve the government. This was a system to repay the government.
56 Student Representative Councils (SRC's) should persuade students to pay. They may even assist students from their own funds (see table 4.5). Too much money is spent on the "Fresher's Ball" and other student related activities. The SRC should consider assisting students with their budgets.
There should be co-operation between students, parents and the institutions of higher learning (see table 4.5). Effective communication between students and financial aid officers and also between management and financial aid officers should be encouraged (see table 4.5).
5.6 LIMITATIONS OF THE STUDY
During the interviews, I sensed that some of the respondents, especially from management, were not willing to divulge all information about their respective institutions. They were possibly afraid that they might incriminate their institutions. Students became emotional, and this could have affected their responses and the outcome of this research.
5.7 FURTHER RESEARCH
Further research on the problems encountered by students in securing sponsorships should be conducted. According to my experience as a student and as financial assistant of an institution of higher learning, all students who are academically deserving at institutions of higher learning will be assisted financially.
5.8 CONCLUSION
I hope that the findings and the recommendations of this research will improve the financial position of institutions of higher learning in as far as financial exclusion is concerned.
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63 ANNEXURE A
FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE UNDERGRADUATE STUDENTS OF THE RAND AFRIKAANS UNIVERSITY (RAU).
KEY: NM: The Researcher. RSR: RAU Student Representatives.
NM: I am Miss Nonhlanhla Mabuza and a registered student here at RAU and doing M ed. That is Education Management. My main focus is on financial exclusion at your institution. My supervisor is Prof. Bisschoff from the education department and my co-supervisor is Dr. Greyling. So what I want to know from you is your experiences on financial exclusion and your name or whatever will not be mentioned so the question of confidentiality is assured. So my first question will be what do you think are the causes of financial exclusion at your institution?
Well firstly I think a lack of knowledge in a student because they really don't know what are the criteria for getting financial assistance and things like that and they don't know what to do let's say they find out that they cannot go on financially because they can't afford it or something like that. So they don't know what procedure to take afterwards. They don't know where to go, how to go about it and things like that. So basically what I'm saying is lack of communication between the varsity itself and the students. So basically they really don't know what to do, where to go and who to go to.
I need to add on that, yes, it is lack of knowledge, like last year I was about to de-register because I had no money and I though maybe, you know, I was like ... my debt was not financially stable to pay my fees and I
1 think TEFSA is more open to the .... student. The students they know but the they don't.
I think this is the support from the parents, whether they are employed or unemployed. Kids don't get support from home therefor they feel that we don't have the money to go school and they don't get the drive to actually go for financial assistance from the varsity.
I think that financial exclusion is caused by, my parents knew that there are financial aids at school so last year I did pass my courses and everything but this year I had to come to school but my mom did not have enough money to pay for my registration, so then this school determined that I have to come second semester due to the lack of funds. I think they do know about those financial aid but the financial department don't give students access to those financial aids.
NM: So you mentioned something about the parents. How can parents not have interest of students not to attend.
SR3: It's not that they don't have interest for their kids to attend but lack of knowledge and lack of drive like support your child to go out there and look for information yourself and not leaving the responsibility to a child. Supporting him will make him even more enthusiastic and even more motivated to get the financial assistance.
SRI: Ja, especially is your parents have not been well educated. You know what I mean they only had that basic education and some of them really do feel that you don't really need to be more that a teacher or a nurse or something like that. So it's such a mission to actually go out to the varsities and try find out about the different aids methods that each of them have and comparing each and every one. So they feel if I could
2 survive with a matric certificate of standard 8 why can't they survive as well.
SR2: And also from the university's side I mean you get here and they give you tours varsity life and all that but do they ever tell you about what financial scheme are available, how can you get hold of finance, introduce you to bursaries. I am sure there are companies who come out here to try and give bursaries and all that but those bursaries goes to students who's parents are who ever
The other thing is we students are ignorant. They sometimes tell us that we have to go to TEFSA to apply for a bursary but you ignore that, so that is the main problem in financial exclusion.
I think most students disagree because of fear in a way. Some of them are afraid to go there and ask, if you go to TEFSA what would people think of you and things like that. It is all about what other people would say. And as a result financial exclusion or de-registration.
SRI: I think as well as a matriculant going into your first year you are so exited about resident how the real life be like how you are now a tertiary student you don't even think about bursaries and things like that you just think well my parents will take care of everything. So your are lost in the excitement of everything when you come here and anyway you are not encouraged to get more information in fact the varsity could at least then with the application forms they could send a leaflet just to say these are the options available to you. I think that could help, just a small little brochure that could tell you a bit about financial assistance.
SR4: The other thing is students like that they are discouraging other students who want to be funded by TEFSA. Some students tell us you are going to
3 pay more, that the investment if very high and we think that maybe we are not going to be able to pay the TEFSA loan so you think no let not go for it. And then some other student think that because of the economic problem in SA we are not going to get employment so maybe it is not a good thing to go for a TEFSA loan. We think we will be financially out and have not money to repay the TEFSA loan. That is the other thing.
NM: What do you think are the causes created by the policy and procedure of the institution in terms of fee collection?
SR3: Well I wouldn't know about fee collection because I actually don't pay the fees TEFSA pay the fees. Basically I know the whole story if you don't pay you that's the thing and the policy the people are running a business you can not blame them just as any other You need money to actually survive. You know to carry on with your business you need finance. But I still think that they should have certain things, financial schemes. They should be able to assist you the students you cannot get their results. You are actually telling them you are writing for nothing. And sending people who is ready to study, who's running away from crime and everything who wants to be something in life because of finance, I think it is bad, they can get sponsors and everything.
SRI: I think the RAU policy is so strict because last year my parents paid for my finances and by the 30th of April they wanted half their money and I'm thinking my goodness I haven't even started one test how can they be already demanding half of the fees because they don't give you space to breath, I just got into the institution and they already want the money right there, right then and they'll send you numerous letters. Nearly ever month or two months and it's quite hard it really is because you think to yourself if they are already sending me letters like this what about next year. You become pressured I guess. Pressured to pay the school fees, it's not like
4 you're not going to pay them but the pressure is a bit too much. Especially at the RAU finances and if they send you those letters and all that, and such things they could give you either all the ways of paying the fees like give you a pamphlet as I said that says if you can't pay your fees by this date these are the other options available to you and I've notices that other varsities like Durban West-ville and the Universities of the North the kids are under so much pressure that they end up striking and vandalising the schools because it's not that, at a certain point they do have a problem but the institutions are pressuring them so much it's not like they won't pay, but they don't help us to pay as well as especially Durban Westville and University of the North. But I have to say RAU does seem to be an exception but I really think there are underlying problems. It's not like RAU hasn't got problems but there are problems that are just not brought to the fore.
Well basically I don't condone what the students did, vandalising the school and doing all those wrong things.. Personally I feel that those students who bring about the violence and the vandalism are those who are not interested in learning. Because you can't go on strike and jeopardising your future in learning, I mean money problems are for everyone but to go out there, students can go to companies even if it takes you a whole year go out there and look for financial support.
In the matter of this institute I think they are so strict because like this year I've already received a letter that I'm owing RAU the money but I think I've applied for TEFSA, it's just that it's paying my fees but they send me a letter.
SR3: I think on top of school fees RAU is so strict in a sense that you have to pay for everything else. Even if you are in trouble. For instance if you stay at residence and suppose you forgot something during the holidays
5 and they are closed you have to pay R100 just to go in your room and get out that something. So things like that I think they are too strict it doesn't make sense for you to pay R100 just to open your room.
SR4: Last year they were about to through me out of the university because my mom did not have enough money to pay for my studies. I remember they wrote her a letter saying if you don't pay this amount your daughter's studies will be jeopardised. So she had to pay that amount and she was not financially good, so I think RAU is like, their standards are only met by Whites because Whites have a lot of money and things like that so they are thinking we Blacks who are studying at RAU we are also like Whites, we have money, we have everything they need so I think the Blacks don't have enough money.
SRI: I think there is a perception that we have the money but that we don't want to pay for our education. I mean would Black day scholars be taking taxis if they didn't want to studies. You know the Whites they do have cars and all that to come to school and they still manage to pay their school fees. So it just shows that I think RAU obviously it was made and it's got these White philosophies I might say especially in the initiation and all that, we all know about that. But anyway keeping to the point because RAU is White dominated you won't find strikes because they are suppressed. You won't find a White person toyi-toying on the streets there at the RAU entrance and demanding they be given the examine paper even if they didn't pay their school fees. It is not done. So could you image us the White minority standing there, we will look the fools and they will expel us they are so strict they are definitely going to expel us they won't listen to any demands or things like that because we are in the minority anyway. They don't need a few million rands when the whole school is dominated by Whites who can pay their school fees.
6 SR3: The question of White dominance also I think it has been from the beginning with RAU and it is not going to change now. If we are expecting RAU in the near future we are dreaming. And this whole thing it also applies to degrees themselves I mean some of the pupils have to learn in Afrikaans in some of their lectures. And basically you cannot expect a Black person who has grown up in a Black township who was learning Zulu and English all their lives to come here and learn in Afrikaans. I for one did mention Afrikaans last year and you know most Black people at RAU are not graduating. Because it is like B.Sc. and Engineering. Because some courses are done in Afrikaans and I think they are just chopping us down. Irrespective of financial assistance.
NM: So what do you think are the consequence of financial exclusion.
SR3: Well basically, if you are financially excluded you feel you can't even go on. There is no support and as a result most students will resort to crime resort to steeling and basically they end up in prison.
SR1: I think mainly the consequences are a low motivation to study my goodness you already have this financial burden on you and you still have to cover a whole semester's works how are you going to study if you are trying to think am I going to be allowed to write the examine. I am going to be allowed into the exam room because I haven't paid my studies. So it is a lot a pressure and you cannot really function in that kind of environment. When you keep on getting reminded every single month to pay and it is not like you are not going to pay them but let them just give you the space and the time to organise yourself because your finances are not the only thing in your life. Your parents still have to pay other things and you still have brothers and sisters we are not the only ones at varsity. So we can help each other that's what I am trying to say and the consequence basically is low morale and you don't perform your best. You could
7 perform better if you had less pressure from the finance department definitely. I have noticed especially in residences like Benjamin and Skoonveldt and such and mostly Afrikaans dominated residences that if a student does not comply with the financial requirements of the varsity the White students will rather leave than seek assistance from anywhere else or if say their bursaries can't carry on paying them they don't really know of any other options in other words they don't know about TEFSA. You find that there is this perception that TEFSA is for Black people, honestly. That is what the mentality is around varsity that if you don't have any other way to pay and it's a White person it's either you leave the institution or you go to banks a lot of my White friends have gone to ABSA and have gone to Standard Bank to seek financial assistance and not that they don't know about TEFSA I think they are also embarrassed to ask for a TEFSA loan because it's seen as a Black loan and what would they look like I mean I'm an Afrikaner and I'm going to look for a TEFSA loan it doesn't sound right that's it.
SR2: I think with the Rand being so bad as well it's the thing of price. I know a lot of White people who are with TEFSA and they can't help it. I mean they are there because they are struggling. And I think White parents they feel like embarrassed if there child is going to school with TEFSA. So that's why they resort to bank loans and things like that.
NM: Why do you think Blacks don't qualify for bank loans?
SR2: How much your parents are earning, bank loans are based on that, how much are you able to pay on a monthly basis. So Black people mostly don't qualify for loans because our parents don't earn big salaries.
SR1: I think as well if I am a bank manager or someone who decides who get a loan if I've got an application from a person who stays in Soweto as
8 apposed to a person who stays in Sandton who am I going to expect to be able to pay my loan back. A person who stays in Soweto or Alexandra or a person who stays in Sandton or Glenvista let's be honest here it's obviously going to be someone who stays in Sandton I'll be more confident that as ABSA that we will be able to get our loan back. That's the truth and I mean living in Soweto obviously means that your Black.
NM: For everything that one does one needs to plan so how far did you plan in as far as your tertiary education is concerned especially with finance before you come to register.
SR2: I you go back as a child parents are so good in pushing you to go to school every morning they are so good in pushing you to go to a good primary and high school until you are finished but they are forgetting one thing that you are going forward and there is going to be a stage where you have to go to a tertiary institutions where you have to pay a lump sum and I think parents are not saving money, they are not investing money for their studies.
SR4: The other thing is even if they did plan for her studies due to the high standard of living I think they are running financially out. Though they have planned on my side my dad was so brave to send me to varsity anyway I know that his not financially OK but he just said that you have to go to varsity, you don't have a choice. 'Cause some of our parents they think they are going paying half the amount and then the financial department will pay the other amount, because they think we really have to send our kids to school but not knowing that they don't enough money they think the financial department will meet them half way. SR1: On my side I think it was planned but things started going wrong at some point because my parents are divorced so you've got that they can't work together to meet my tertiary financial needs. My family broke down so you
9 can't really expect them to work together so any way I think White parents they would rather have their children go to school and have their cars and be comfortable and the parents would rather suffer as in work 24 hours a day and things like that and not have a piece of furniture in the house so that their children can go to varsity and have those cars and things like that. That's what I've noticed basically with my friends.
NM: So what do you think are the solution to the problem of financial exclusion.
SR2: Basically we as students from high school level or primary level should educate our parents as we go along. We should not only learn at school but find out from other investment companies on all that how can our parents invest money so that when we get to that stage when we need to pay large sums for them to actually pay for us. So we educate our parents first and we go out and seek information.
SR1: I think it's on our part it rests with us students to find out more. But the thing is the matrics of this year won't know just like we didn't know what to do then. So I think a lot is left to a tertiary institutions itself whether it be Durban Westville whether it be the University of the North to let the students know what their policy is about finance. They mustn't let the students be excited about residence and all that. They must just address the financial part first before they talk about how they RAU is such a culturally based institutions. They should first tell the students who are coming in that this is how we work, we are very strict with finance and if you can't pay your financial requirements this is what happens to you before you get into the institution and on top of bursaries that are available to you make sure that before you come to RAU you know that you are financially stable so that you won't run into deficit later and just look at other financial options available to you before you come to the institutions
10 so investigate and this is just a little pamphlet to show what other options you have.
SR2: If they could introduce a fee at special institutions whereby pupils starting from high school if like when your are in high school from June when you are in matric from June you can't think am I going to fail or what start applying, that's when you start applying, while you apply let your parents start paying the money so that when you get to tertiary institutions to varsity you only have half the money to pay, I mean if you start paying earlier then resting and starting to pay from January. Cause that's going to be too much pressure and why with parents that are unemployed I mean that is a tough one. There is no solution around that and specifically on you as a student to work hard so that you can be able to get bursaries.
SR1: The fact that TEFSA offers the options of lets say you pass all your subjects and you get a certain amount off. Let's say your are a student from a disadvantaged area or something like that you can always work part time I think, work part time on weekends and you can lean on the fact that you get 40% off if you work hard or 20% off if you work hard. If you work around that that sort of plan you can definitely finish your degree of whatever you're doing and not have so much financial burden when you've left.
SR4: For students who are They have to work very hard to get bursaries. Because bursaries are only awarded to students who have passed in high class.
SR1: But the thing is bursaries also discriminate a lot have you seen some of the bursaries only to Afrikaans speaking students only to students from the Louis Trichardt area. Who lives in Louis Trichardt I ask you Afrikaanses?
11 NM: On the basis of what you've said really I would like to take this opportunity of thanking you and your contribution. I hope your contribution will help a lot to our potential SA students who might be willing to come to a university or where ever and I'll try and prepare a copy of what I've said know and my mini dissertation as a contribution to you. On that basis I thank you.
12 FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE UNDERGRADUATE STUDENTS OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA).
KEY: NM: The researcher SR: Student representative.
NM: I am Nonhianhla Mabuza, I am a student at RAU, that is, Rand Afrikaans University, I am a M.Ed. student in educational management. My supervisor is Prof. Bisschoff, and my co-supervisor is Dr Greyling. I am here to do a study on financial exclusion at a Historically Disadvantaged Institution. I request you to freely participate in this issue and the issue of confidentiality is assured so no names or whatever will be mentioned. Financial exclusion, what is financial exclusion according to your knowledge?
Financial exclusion is simply the issue about terminating the students attendance, the students participation and the students de-registration racially, they terminate the students classes immediately and then the students is no more a student. It's simply that.
In my opinion it would be a point whereby a student is being de-registered from the institution basically because he or she doesn't have enough money to further his or her studies. I'm afraid I'm going to repeat myself.
NM: It doesn't matter.
Yes that was the idea, that is my interpretation of financial exclusion. In most cases this financial exclusion thing I believe it is caused by factors that we can contribute to many factors why do institutions decide to de-
13 register some of the students because they don't have the money to continue their studies. To further their studies. It will also confirm one's background, there is more to this financial exclusion than just a student and the institution only. There are also some other contributing factors to make this whole thing a wholesome thing. That is my opinion of financial exclusion.
Another issue is that financial exclusion does not only effect tertiary education students we must also consider those students that has no access to tertiary education. Just because they don't have money for education. They are not informed about the resources which are available to help them they are financial excluded even though they are outside they have excluded themselves financially they have not been de-registered by the institutions but then they are outside the tertiary education even though they are able even though they are capable even though they have matric exemption they even though they have extinction and what not they are not informed they are also financially excluded because they have not the money but then there is this usual sight the common sight that we speak about so often the financial exclusion that has been done by the educational institutions.
NM: Could you please elaborate on the financial exclusion brought about by your institution
Financial exclusion in educational institution we find that happen in different ways usually you find that you will be asked to register conditionally if we have insufficient funds. The conditional registration is such that there is a timeframe attached to it. So they say you have to paid the full amount paid say in three months time then in that three months time if you are not able to pay that money then you are being de- registered and then immediately you have to go and then when you have
14 to go some of they students will go to the SRC and complain to the SRC. And then you have the mass actions and what what in universities. But I should say in our own university here in UNIQWA we have seen a great improvement concerning financial exclusion. The number of students who are being excluded every year have decreased mainly because I have seen the academic registrar department dealing with students individually they have dealt with students individually spending time on those students for their individual problems and we have also they are been bringing money on board they have been raising money for specific students we have seen for five people just for five people they have not done such huge difference as we want to see in institutions where you have sixty bursaries or what but then they have been able to changes those specific lives those people have no access to I feel very personal about this because I am also one of the students who have been dealt with personally other wise I will not have access to this institution I will not have access to educational to tertiary education. But then because of the academic office of this institution which dealt with me and four other students personally they considered our personal problems I had the money for registration some people had not the money for registration then I was able to pay the money for registration but I couldn't pay further then that they raised this money for us. And I have seen other students who are matriculants who were fetched literally fetched when I speak of being fetched I'm not speaking about just informing them that there we what this student who has passed to come to this university those are students who do not have the hope of tertiary education they live in very rural areas but then they were literally fetched to come and study here given those bursaries given that access to tertiary education and then you can see that a difference is made even though it is a small difference but then it touches someone.
15 NM: You mentioned that there are other factors that affect the students in as far as financial exclusion are concerned. What are those?
SR2: The question, the issue of family background saying we know most of us are from previously disadvantaged communities where you find that the mother is the only source of income or the father it is like in our family we've got large families we are from large families therefore when you say at your place you have got five kids and all of you are at secondary then all of you have got hopes take my case for instance I was the first one at home to finish matric and when I finished matric my father did not have the money to take me to the university then fortunately a friend of mine told me about this institution, this institution and the benefits thereof that when you come here and you perform good and you are from a disadvantaged family there are means to help one financially to succeed therefor I took a liberty of coming here to try. But in most cases some people are not accepted as my sister has mentioned some people are not aware of such facilities of such programmes at varsities because we just don't have enough information about varsities therefor because of that factor that we come from disadvantage families it also becomes a problems for one to get that money just to come and register so to register for me it was I hassled I really went through thick and thin to trying to find that R1 000 to register It's all I had because of my background I was told no we don't have that kind of money that kind of money to take you to university so if you wanna go there you go there at you own risk then I came here my brother borrowed me something like R1000 and I registered I did not know how to pay my studies I did not know who was gonna give me money for books but fortunately I knew I about TEFSA then I did my best and it worked so because of my family background I believe I would have been financially excluded. Secondly we've got disadvantages tertiary institutions like for instances take this one of our sisters a predominantly black institutions where you find that management is black where you find
16 that the management and the staff is predominantly black so because of that you find that in most cases such universities are not sponsored we don't have enough sponsors because of the area that we live in it's a practically rural area so no investors no private companies are willing to invest in our education that is another factor that causes some of us to feel like we are being excluded financially and some institutions are also excluded financially take for instance this one of ours therefor the third factor that might be a contributing factor well the government will also have to be blamed in this instance because we certainly depend on the government like for instance we voted the government in hoping for free education we were promised free education and it was even said that tertiary institutions would be more accessible to those who were previously disadvantaged but we didn't see that much improvement in that area so the government also is to be blamed that's how I see it. These are some of the serious contributing factors well some people might raise the issue of economy is a broad issue there are more factors involving that even though I'm not aware of some but economy is quite a broad subject I would not like it to bring in but these basically the family backgrounds the institutions the disadvantages institutions and the government these are one of the most important contribution factors to that leads to some financial exclusions for most of us.
NM: So what do you think are the causes created by the students
SR2: Ja, the students also have to be blamed, for instance this kid is from a well to do family then they give students some money to come and register just because they realise that most kids at school don't have the money to register some of them decide to abuse that money that they got from their families and claim not to have money so that is one mistake that the students are doing secondly you find that some students are not from well to do families but when they do get to the institutions they don't even work
17 hard so to get such support from their structures or in programmes that are available at varsities so these are some of the factors that students I believe that do contribute in one way or the other
And as a financial student in the financial aid office I was heart broken to see the Director for financial aid office trying troubling to give money to those students who do not perform. The level was I guess she expected 60% pass but then we had a drawer full of the files of students who did not perform and who really need money who were queuing outside there begging for financial aid and then who were asking why didn't I get this loan why didn't I get that bursary then they were told that you know that you must pass at least 60% of your courses and she tried to reduce the level and she said 50% even when she said 50% I was asked to look through the shelves to find those students who had at least passed half their course I found only one in a huge shelf I found only one student who have pass 50% of the courses so students on the other hand they say if a horse does not want to drink and he wanted to drink water because he feel thirsty if it doesn't want to drink then there is nothing that you can do then they are also excluding themselves at the end of the day they will say I did not have access to tertiary education because I was poor but then the resources were waiting lying there no one took them so what.
Mmmm that is true.
NM: What do you think are the causes created by administrators that is financial aid officers?
SR1: One of them as I have just mentioned is publicity. Publicity within the institution the institution that I am in now is fine, TEFSA is as well publicised the students are well orientated about TEFSA when they come here. I know that during their orientation week TEFSA will have one or two
18 days the financial aid office will have some time to explain about bursaries to explain about this government loan TEFSA but then publicity outside here in the immediate area in Qwaqwa there is no publicity at all and I think something must be done about that. The students do not know about what I have just said we have got from this institution For me to know that there was a bursary for 5 students who would performed well in matric well I heard it from the registrar but it was only one advert And that advert was surely heard by a neighbour and the neighbour came and told me When the neighbour told me I couldn't believe that because this was just a distant educational institution which I was not even dreaming about We read about other universities in the newspapers. There is WITS, there is UOFS, there's what. We know everything about them they are in every newspaper there are leaflets they are doing workshops but then we do not know about our immediate tertiary education institution we do not know about UNIQWA. The students out there do not know that the government is supplying money to students who do not have money. They do not know and then the students are being discouraged by that because they think that I don't know what I don't have the money what is the use of me studying what's the use but then here we are literally They need those students So if the university will do more to encourage students to accept this resources them at least you will see the difference
SR2: Ja I think that there is actually much that needs to be done by the administration. Firstly like my colleague has mentioned here the question of marketing the university I think there is not much marketing. Then the reason given some of us went to ask but why don't you advertise more about the institution and try to lure some sponsors to come and sponsor this institution The reason given was there isn't enough money for us to advertise the institution so if there isn't enough money obviously the institution is not gonna succeed in any way but when you check some other universities some other institutions they invest so much into
19 marketing their own universities so that they can be assured of the future because if you know you don't market your product that well it will soon fade out there so that is the problem but the reason given was money of which to some of us it doesn't make any sense how come you establish an institution and therefor you don't turn away or try to make means or try to sustain and maintain that and keep that institution going in that manner so the administration has so much to do in that area Secondly the institution/university it's drowning by the day the bad publicity that the university get it does more harm than good that is one factor that the administration should look into and in dealing with matters that concern the university I believe they should be more careful about such issues because any bad publicity given out there destroys the reputation and in that manner no one will be willing to contribute to this institution because of bad publicibity that publicity because of that you find the corruption that is done by mostly by management and the selling of degrees those are the things that affects the university badly and these are the things I believe the administration needs to look into in trying to get this place the whole university thing going because if that does not happen then we won't have any more students and obviously the sponsors of course would not want to invest in this institution because of such issues, so there is more that the administration needs to do.
SR1: Another issue is people who become computerised people who are just like machines , who become so apathetic so passive so cold towards students when they come to institutions When you come in a ground floor of a institution you often meet the reception area and then you ask where can I ask about this issue and they show you the registration office after asking about the registration office you will be shown the financial section when you come into the financial section there is nothing else to do you just have to pop money and if you don't have money they log in there our computer they say this computer wants money if we don't have money go
20 and then if you want to speak I am comparing with one institution. If you are at UNIQWA if you say I do not have that money then you usually are referred to the office of the academic registrar and then you find the queue there you just have to be just a little bit patient and you will speak to the academic registrar and I know that the academic registrar office in this institution deals personally with students and is not computerised it's human I know that but then I know are other institutions they won't listen they won't listen to anything you want say my father and what what they say no we want money you said you would pay by that 6 th of what, what we want money if you don't pop money then you get a letter thank you for your attendance during the last 3 months would you please take your bags and go. That's what happened. People, let's say you are maybe referred to the counseling services but that how does that relate to your main problem which is finance you will be going there for counseling and then after getting that counseling encouraging you just encouraging you to study and what, what how will you study without books how will you study without meals how will you study without having paid your tuition all these factors counts and if people are unsympathetic towards students and the institutions do not have those facilities which can deal personally with the problems of students if the staff becomes too computerised too inhuman towards students then what do you expect It's very easy to back your bags and go. To loose that fighting spirit which we need in students to survive in this age.
SR3: I think our problem here is ignorance during orientation we were not quite aware be elaborated on the sponsors and funds the institution can offer. I think that contributes to the problem at our institution.
SRI: For example, some people around here in this very campus you get to the main notice board you see the big poster there usually in yellow in blue in pink and what of TEFSA TEFSA loans what TEFSA loan what student
21 who have not yet filled forms come here but then I tell you there are first year students who do not know about TEFSA in this very campus. What happened I was not in the orientation but she has serious problems.
NM: So what do you think are the causes created by policies of your institution in terms of payment of fees?
SRI: Well per ser our institution in terms of payment of fees is a bit lenient to us but they really don't enforce they don't push they don't put more force because I believe they understand they try and understand our problems and our background as well so in dealing with us they become a little bit lenient so for that matter that also becomes a problem because when you need money to run an institution you need to be lenient as well bearing in mind that at the end of the day you are also accountable not only to students but also to the whole institution because if one student fails to pay his or her fees then there should be means that should be initiated on how is one going to pay for such but if there aren't any means then probably there isn't much that like my sister mentioned the question of computerised people I think at some point in time when you talk finance you really need to be very careful because it's the finances that will keep the institution going. So if they are lenient about the payment of fees then obviously we will end up with that huge student debt as we have in our institution because at some point in time they try to understand our problems and our backgrounds but they also neglect the point that we also need to make a certain contribution towards our studies. If we don't have money we can compensate by performing well, doing well enough so that we can get sponsors and bursaries from outside because therefor on that issue I think there is more that needs to be done about that issue of fees and how the whole administration works about the question of the fees.
22 SR2: I think that debt collection policies are really necessary. It's not all students who do not have the fees. Some students do have the fees but they only find that there are too much lenience towards them then they withhold the funds they use the funds to buy fridges, TV sets, VCRs in their rooms and at the end of the day no one says anything about it. So we need better policies in that and then I have seen some improvement really here in our university and during registration now they now demand that you pay 70% of your fees before you register of the fees of the last semester and during the remainder of the term I think they will also demand some money. That's not what was happening. People were just producing that R1000 registration, you could still register on that R30 000 debt you had. You see it was corruption. You cannot not have a business which offers debt. Take say you have tools which offers credit sales but then without credit collections policies that sick and that is mismanagement on the part of black institutions that is mismanagement of funds we need better debt collection policies.
SRI: I also believe that if these policies about the payment of fees could change that would also allow room for development because the institution or university is working on this minus budget there isn't any room for development therefor you find that every time they operate on negative budget there isn't room for any room for improvement for the institution that is one issue I think they also need to consider in their policy in order for them to be able to allow room for development, developing and promoting the standard of living on campus.
SR2: Yes I say the policies are there but there also needs to be change and mechanism to enforce them it also needs to be put in because if policies are there and no one is following them obviously there isn't any reason for them to be there therefor the institution or the administration and the management needs to device mechanism on how to enforce these
23 policies and those policies that seem not to produce any fruit I believe they should also be eradicated and new policies should also be brought in policies that would ensure that the institution is functioning effectively at the end of the day.
SRI: I think UNIQWA have done some job on that factor because we have seen that those students have that big debts are trying to reduce their debts after being pressed there also have to be some pressure which has to be applied on those students with big debts whose families are well to do we have seen these students being referred to the accountant of the institution what I had just emphasised the accountant becoming human communicating with the parents at home not just saying you that have a R30 000 debt go, communication with parents at home and making arrangements with parents because parents don't want us to stay here although we as students sometimes are not very careful about our steps but then parents because they want us to stay here they agree to those agreements then they promise to pay small amounts monthly and then they did that and I think there is some progress on that side.
NM: My last question will be what do you think are the consequences of financial exclusion?
SRI: Criminality, the students will become criminals. There will not be students anymore that is one big disadvantage and you see you will find that this people who once had this positive outlook on live who once had this dreams this dreams are now being pushed aside they're being slashed by a factor which sometimes is out of their reach there is nothing they can do about it but then because people are computerised the policies are too big for them this world is just not for them without issuing any race card but then at the end of the day this people will become discouraged and then
24 they become dropouts and useless people who will become anything, criminals, prostitutes any thing you like
SR2: They will become dropouts and the institution will close due to lack of students.
SR: You are right about the institution being closed because there are lesser and lesser numbers every year I've will see those declining numbers although the reasons are being said to be maybe the students being more aware about other alternatives others than tertiary education some are doing practical work some are opening business some are going to technical colleges some are going to education colleges so at the end of the day we have those students going to alternatives institutions because they don't have money.
SR: If we get this high numbers of dropout from the education institutions it will become a problem for the society for the families and for the government as well because the very people who have dropped from school they will go out there and commit the crime that we so much complained about daily and because of that fact the government has neglected the needs of the students and that led to them being de-registered because the question of de-registering students and excluding them financially also concerns the government because these institutions are subsidised by the government so if there is not enough money obviously the students will dropout and they will go out there having no sense of significance seeing that there isn't anything for them because they tried and they failed because of lack of finances and because of their background as well so this will perpetuate crime and all sorts of evil that we have seen enough of in society and because of that we will never cease to have these problems that we are faced with so that whole process will hit back at the government at the end of the day the government and the institution and
25 the families do not sit down and the society per se and device mechanisms which will be helpful for one to be able to sustain kids at school but the question me coming to an education institution, my family will benefit and my society will benefit and obviously the government will benefit a lot and if we fail if we are not given such chances the question of developing of reconstruction and development the government solely preaches will not materilise at the end of the day because they need people who are literate people who have been to schools people who have been to tertiary institutions and people who will come with new ideas who will create and invent things so if such people are not given that chance because of lack of finances because they don't have money then that is a problem for the government and the society at large.
SR: The other point is when some students dropout then the institutions will be faced with a case whereby we have seen that happening here we have SRA trying to fight with management for some students to be taken back to schools to be registered again therefore you end up seeing a situation where there is chaos on campus because some people want to study just because they don't have money they are being de-registered and some who have the money are also affected in that those who do not have money will ask them to support them like look people we are all in this together and if they decide because we don't have money you should join us in our struggle to try and find these people and make them try and understand that we really need to be here and study therefor there will be chaos and unrest and the management itself will suffer at the end of the day. The institution also will be affected badly the reputation that we have been talking about will also affected because of bad publicity secondly because of the unrest people might resort to some desperate measures like destroy the property of the institution as to express their anger that people look here we really want to study and if this is what you are doing
26 to us we can't help it but to show you to try some means to make our grievances heard to you that we need our education
SR: If there is something that we do not need now is these student unrest in formerly black institutions see there is already much damage which has been done about the reputation of this institution which have been well know for toyi-toying and vandalising their own property and not loving their own institutions. You see if there is not something that we need now the perpetuation of the bad reputation we really have to do away with that bad reputation and that we can achieve by working for less enemity as we can in this institution between management and students if there can be a spirit of cooperation a spirit of harmony within the institution at that point of equilibrium were we agree that we make certain compromises that we allow this extra time to register we will try these measures the SRA the student representative council will try this measures to try and encourage the students to pay and then the management will try this measures then we will try to cooperate and then we are also building our own reputation then you we will also have investors coming back to our own institution then you will have those matriculants being more informed and you've got positive publicity then you decrease the news of those skeptical reporters then you give them something good to say about their fellow black people the fellow black institutions.
SR: Exactly, what my sister is being saying is I've just got an example in mind let's take the recent case in Durban West-Ville that was exactly because of financial exclusion. Some student ware de-registered because they didn't have enough money and there were unrest and unfortunately one student got killed in that. So it's one unfortunate ending of that unrest because of the money and the whole question was because some people did not have money and now you must leave because you don't have money and the management was just not cooperating so that lead to some
27 unfortunate incident at the end of the day so this is one example that we can take that financial exclusion are very serious and they need to be addressed by institutions and the government as well because these institutions at the end of the day are run by the government in one way or the other
SR: Maybe it is because UNIQWA have a smaller number of students population compared to other universities as huge as Durban-Westville but however I guess many institutions will learn a lot from this small institution I have already stated that there has been a lot of progress which has been done by decreasing the number of students who are being excluded I do not know how but I know a lot has been done. We have very small numbers of students being excluded here. And then I think many institutions will earn and do away with this monster. Financial exclusion is killing our black institutions because at the end of the day when you have got your degree they will ask you how did you get your degree when your institution was toyi-toying while there was unrest in your institution. How did you study. You see, we get questioned about our qualifications at the end of the day and then we get discriminated against. And then we will issue a race card on that and say it is because we are Black while it is not that, but then there is no harmony in the institution, there is no cooperation in the institutions, in themselves and this is the problem. A human problem which can be solved by humans. Just as the government develop controversial policies, big programmes such as the RDP to solve problems. These are programmes which are developed to solve problems and if we call ourselves academics who cannot solve such simple problems, then what do we think we are. Academics should then be able with their qualifications, with their great minds to solve this problem of academic exclusion jointly, both White and Black because this is for all of us to empower those who has previously been disadvantaged.
28 FOCUS GROUP INTERVIEW BETWEEN MS MABUZA AND FINANCIAL ASSISTANTS OF THE RAND AFRIKAANS UNIVERSITY (RAU).
KEY: NM: The Researcher FA: Financial Assistant.
NM: I am Nonhlanhla Mabuza, I am a student at RAU. I am doing a research on financial exclusion. My supervisor is Prof. Bisschoff and my co- supervisor is Dr. ESG Greyling from the Department of Higher Education. What I'd like to do is to do a research on financial exclusion, so I'd like you guys to help me with the research process. I will be asking you questions and no names will be mentioned or the name of the institution and everything that you will be saying around this table will be kept confidentially and a report will be brought back to you as soon as possible after I have completed my mini dissertation. So my first question will be what are the causes of financial exclusion at your institution. Anyone can jump on the causes of financial exclusion at your institution.
It's because they cannot pay their registration and people that are academically not performing. There are so many points that ...
Yes, 50% of the courses have to be passed, if you don't you will not qualify for any loan of bursaries.
NM: So what do you think students are being de-registered at your institution, what do you think are the causes of students being de-registered.
FA2 One of the causes can be at the beginning of the year everything is clarified to each and every student, that you pay the registration fee and by the 15th of April you should have paid half of whatever balance you
29 have and by the 15th of August you have got to pay the whole amount. But in this case students take advantage of knowing that they only pay the R1 800 for the registration fee and by the 15th April nobody is around to pay the half of whatever balance there is. So most of the time the institution sometime stop your studies or they inform you, telling you that we were expecting 50% of the money that you said you're going to pay and you didn't pay.
And the other reason why students are de-registered is because at the beginning of the year they don't have money to register and they sign debit orders and they don't honor any of those debit orders. If it's not honored three or four times they advise the student that the debit order has been returned and if the student doesn't respond then the student is de-registered.
NM: Every institution has a policy of collecting fees from students. So how is the policy of this institution in as far as fee collection is concerned?
You know with the fee collection is something else because as I said the agreement at the beginning of the year is being signed by the parent or who ever is supposed to take care of the student. Most of the time they hand people over, but after so many notices, they don't just hand you over. In most cases it's for people who did not pay for a whole year. Sometimes a person doesn't pay for a whole year and expect to be registered next year, the following year. And that is most of the time it's impossible.
NM: I heard you mentioning something about handing over. What is that ...
FA2: Handing over is we have attorneys who are handling our accounts. I don't know whether is it because between the university and those lawyers or
30 those lawyers they belong to the university, I don't exactly know. Are they independent?
NM: As Admin Officers what do you think are the causes created by you in terms of financial exclusion. Are you accessible to students and are you disseminating information properly?
The information is disseminated all around the university with notice boards, brochures and with new students there is also an orientation programme telling them which financial assistance is available at the university.
NM: What do you think are the consequences of financial exclusion at your institution. What is the result of financial exclusion?
The students become very bitter in a way that sometimes you think they will toyi-toyi and I for one would say we shouldn't be too harsh to students who cannot pay their fees, but there is some programme that they can do. I don't know how, to pay their fees.
FA1: The other thing I think the National Student Fund of South Africa should be more lenient in terms of family contribution because there are families who cannot contribute at all. If at least they can say to the student as long as the student qualifies to study at an institution they can just go and study. Unless the student fails, then he will be excluded, but if he qualifies to study he can then continue without paying any family contribution. Because other students do not even register because of the family contribution but I know they do allow exceptional cases. But the problem with students if one student is given exceptional treatment they all want to have the same exceptional treatment. Maybe then there should be an overall thing to say OK register.
31 NM: So what do you think is the solution to the problem of financial exclusion.
The solution is this policy of the university should be more flexible in terms of this payment which is the registration fee. Look at those, because there are really people that can academically deserving but they are financially disadvantaged.
Like sometimes you will find there are so many maybe five children from one family who are studying at that particular institution. I for one would say that if the university can maybe pay for the first' two and the parents should see to the others. I feel it is too much for a parent to pay for students who are more than three students from the same family. I should think they have to be more lenient with them like discount for more than two students coming from one family. I should think that will be a good service.
NM: On the part of planning, the education system of South Africa based tertiary education will never be free so on the question of planning do students or parents plan for their children to go to higher education, institution.
FA1: No. I think in this day most parents don't plan for their children's education at university. OK. Some of them do plan and that's were the problem is, they just send their children to the university knowing that there is money from the government like National Students Fund of South Africa. And the students as well must be educated to become more responsible in terms of paying whatever the parents has given them to pay the university. Because our students of today like things like cellphones and fashion and things like that instead of getting their education first and paying for it so
32 the parents and the students should both be educated in terms of paying for everything that they are getting as much as they can. If they cannot then that's where financial assistance can come to the rescue.
I feel the students must have more responsibility to know where that money comes from.
NM: On the question of financial exclusion how can you rank your institution, in terms of financial exclusion. You can say it almost every year at the beginning of the year most institutions have class interruptions caused by financial exclusions. How is your institution?
There is a very fair balance between TEFSA loans and the financial assistance that is given to the students and they are very accommodating to the students. This financial year we are standing at September and we have not handed over students from last year, so I think financially we try to accommodate the students, either by TEFSA, RAUKie funds. By funds that are given from other means we try to accommodate the students. That's why we don't have class disruptions.
NM: According to your knowledge, your institution has a lot of money in terms of bursaries that is issued to students. How do you generate that?
FA4: That has come from a long-term investment. Management saw the problem before it really arose and they invested money in land and building and capital things that generates funds to make available of funds to students.
FA1 : And the other thing with class disruptions here because of exclusion 99% of the students that come to RAU are from families that are educated and they know their responsibilities, they want to study and get their degrees
33 and get on with their lives. At some stage there was some plans to disrupt classes because of exclusions but the students disappeared they were never interested in, that person that planned it was left in the cold. They all said that they came here to study and get their degrees.
NM: On the .basis of what you have said I like to thank each one of you with your contribution and whatever and I promise that when I have completed my mini dissertation I will bring a copy to your institution in order to improve the standard of higher education in South Africa irrespective of any institution because this mini dissertation will be circulated even to the government as art of the solution to the problem of financial exclusion. So your contribution will not only help me to pass this but it will also help the South African students so that the government maybe able to provide more money to help students at tertiary level. Thank you.
34 FOCUS GROUP INTERVIEWS BETWEEN MS MABUZA AND THE FINANCIAL AID OFFICERS OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA).
KEY: NM: The Researcher. FA: Financial aid officer.
NM: I am Nonhianhla Mabuza. I am a student at Rand Afrikaans University and doing my MA degree in Educational Management. My topic is on financial exclusion in a historically disadvantage institution. My supervisor is Prof. T.C. Bisschoff who is also a lecturer at Rand Afrikaans University and my co-supervisor is Dr. Greyling. Because this is a sensitive issue and relating to your institution your confidentiality is ensured and after the I have published the report I will bring a copy to your institution as a source of reference and as a thank you for your contribution. So my first question will be, what do you think is the reason for financial exclusion at your institution.
FA1 : With our institution I think the reason is then client we are serving, the community. Most of our students come from the rural areas and our institution is situated in the rural area of Qwaqwa. Most of the students who are opting to register are the ones who can not afford to study at other institutions like RAU or Wits and this previously White institutions. So most of our students come from the Black communities and from poor families so to say.
NM: So in this case what do you think are the causes created by Admin that is the financial aid officers in terms of financial exclusion?
35 FM: With our institution they financial aid bureau is not fully equipped with a staff component within the financial aid group. What is needed for the financial aid bureau to service the students. With us here we are only dishing out funds which are available to the students. We don't have an alternative avenues of going out and doing some fund raising or selling the institution telling the community we are serving. So with us here we waiting for external communities, sponsor to approach us. We don't have channels to go out and approach sponsors. That's the problem. The financial skills that we have, we have only one or two, that is TEFSA and NRF which didn't go out and did fund raising for us, we did not go out and look for that. TEFSA we know is sponsoring each and every institution. NRF is the same. So with us we are only doing a clearical job we are a link between the sponsors and the students. We are doing nothing specific to go out and fund raise for our students. I don't know if this is relevant to your question. Maybe my colleagues wants to add something to your question, or to add on what I already said.
FA2: To add to on what Mr. Morwana have said I would say when coming to dissemination of information the office each and every information that we receive from other sponsors we always disseminate it to the students. So the other problem I have seen in this institution is normally information that we receive what information we keep from other people is like maybe the sponsors need the students who will study for other programmes that we don't have in this institution. Maybe our management could do the assignment we give information to the community and at the end of the day we are recruiting for other institutions instead of recruiting for ourselves.
NM: Because there are policies guiding the collections of fees and payment of fees in your institution, what do you think are the causes created by those policies and procedures?
36 FA1: Policies on colletion of .... NM: Policies in collection of fees from students and payments of fees, registration fees?
I think that previous experience we had, students used not to pay the university for that, even those who are having money will opt to utilise the funds for something else, you see. So you find that is why our institutions that the historically disadvantaged institutions are having financial problems. F think that emanates from the culture which our students are having a non-payment culture. I think for the institution to overcome that the policies must be set like with our institution we have the policies to collect the monies from students.
That recovery is another problem. How to recover the debt.
From the internal environment point of view the administrative bottle neck exist. And there is reluctance on the part of the existing officials.
FA2: To make sure to enforce that recovery, in my opinion the whole matter can be approached from a social economic point of view if that phase can go to the level of the sociological or psychological measures that is communication and education and if that fails the solution can be legal action. If that fails you have to go to the socio-economic measures, trying to help some students find some sources like educational loan through the private sector to make funds available to fund the students.To add from this points again I would say specially I would suggest that if the university maybe tabling those policies they should involve the parents. Because at the end of the day if the parents are not involved how would they know what are they paying for then what is that money going to be used for. So I think in future the institution should involve the parents in order for the institutions to keep it's business running. Then the parents
37 will pay something because of the students studying. So someway somehow the university only post letters and policies that have already been endorsed by the university without the consultation of the community. That create a problem.
NM: What about the management role in as far as financial exclusion are concerned?
FA1 : As far as the management role towards causes of financial exclusion or this particular concern, what we see in practice in the internal environment of the institution is that the management take a stand of making special arrangements to simplify the terms of payments and the methods like debit order or stop order from employers of students who are working, with parents of non-working students arrangements are made, but to the external environment when it comes to inter-institutional relations or comparisons we find that at other universities especially historically White universities they are very much adamant they make sure that students pay. But historically Black universities as mentioned earlier on seem be reluctant to make sure that they ensure the payment of fees. But that's what appears in the media concerning one of the universities. One observer said historically Black universities make political decisions that are not financially viable. Continuing to register students who are unwilling and reluctant to pay without making special arrangement to pay. Make those institutions suffer financially, like we see high students debts being published in the media. Historically White universities they make sure they enforce payments, that's why they have sound financial management systems.
FA3: Exclusion are not very much observed at these historically white institutions.
38 FM: To add on what Mr. Makgetha have said I would say the problem again the role of management is, there is no commitment when coming to our executive management because they don't stick to their decisions. Thirdly I think if maybe the management could use other mechanisms like. Maybe blacklisting the students who don't pay. I think that would also solve the problem. People will know at the end if I black debt then it does not get any credit facilities to each and every institutions. Maybe then they will start paying. I think you can use that mechanism. That will help us again.
NM: What do you think are the consequences of financial exclusion?
FA3: The consequences of financial exclusion, you will find that for instance like our university is situated in a rural area. Some other students like now we see each and every day the high rate of unemployment is going up so you will find mostly students are roaming around the townships or roaming around the villages because they don't have money to pay for their studies. Secondly that will create high rate of unemployment and the higher rate of crime. So thirdly that will also hamper the business plan of the institutions itself. Because most students are in the surrounding area. They will not be able to come to the university because they don't have the money. At the end of the day we find that the institution will have to retrench some of the staff members because they have no money to keep this business alive.
FM: OK in terms of academic problems I would say for instance like for instance we expect that the university are local here in Qwaqwa. We expect it will develop people then it will also guide some other community people so maybe for instance like I said now if maybe the university does not have enough funds to run the business you find that experienced people that we are using within the university then they go to other
39 universities and then the community where they have moved to will benefit so at the end of the day we will not be having people that would develop communities and people who will also put us on the global map. Academically we will not have students, we will find more illiterate people because there will be no universities and the other universities far away.
FA3: I think to round up what Mr. Ngubeni have said is that there are consequences on the financial exclusion. The disruption of classes by students, almost every year if you go to our Black universities every year the SRC's and the student structure are engaging themselves with management on the financial exclusion and in most cases they end up on class where boycotts and sometimes they even vandalise the property of the institution. That is another consequence.
FA1 : Internally what we will see as a result is that there will be strikes, the distraction of property, class boycotts and clashes with the police and the security services. And externally the consequences would be a high drop of rate. Other students will enrol with private distance education institutions. There will be a skills shortage for the country as a whole because the students who are supposed to have studied and acquired skills that are highly needed by the country will be roaming the streets, with other consequences such as the high rate of crime due to the shortage of those students as well as the diminishing market of labour force.
NM: My last question. What do you think are the solutions to this problem, financial exclusion?
FA1 : I think the only solution to financial exclusion is cooperation between the students parents, the university and the students themselves because we are having quite a number of students who are dishonest to the parents
40 and even to the university. Sometimes you will find the families of the student are able to pay for the student's fees and the students after receiving the money from the parents doesn't pay because he wants to be in line with other students who can not afford to pay. So if they don't pay the opt to buy fridges, televisions and music systems etc. So I think the only solution is if the university can directly engage the parents of the students, like maybe for instance on the policy we say the parents must pay directly to the students unlike to giving the money to the students that will brake the middle person between the institutions and the parents, I think that could be the solution.
To add on what Mr Morwana have said maybe there can be a restructuring of policy, community involvement in university communities. Then I think what we should do again we should inspire culture of payment within the students and the parents themselves.
The solution towards the financial problems of institutions would be in that universities should make sure that they increase the number of sponsors for students who are financially disadvantaged. There should be more bursaries and information should be disseminated to the students. there should be aggressive fund-raising campaigns to find sponsors and on the academic performance level, as another cause of the problem there should be student academic programmes, academic support programme like study methods and even some counseling.
FA2: I think Mr Makgetha said a mouth full about the aggressive fund raising strategy.
NM: On the basis of what you have said I would like to thank each one of you in participating in this interview and I promise that I will bring a report to
41 you as a reference, I will bring the recommendation and everything in order to improve our historically disadvantaged institution. I thank you.
42 ANNEXURE B
INDIVIDUAL INTERVIEW BETWEEN MS MABUZA AND THE ACADEMIC STAFF OF THE RAND AFRIKAANS UNIVERSITY (RAU).
KEY: NM: THE RESEARCHER AS: ACADEMIC STAFF MEMBER.
NM: I am Miss- Nonhlanhla Mabuza. I am a student at RAU. I am doing my Med. and my Supervisor is Prof. Bisschoff and my Co-supervisor is Prof. Greyling. I am doing a study on financial exclusion at historically disadvantaged institutions. So my questions will revolved around that and I want to assure you that no names will be mentioned and after the report I will bring my mini-dissertation to you. My first question will be what to you think are the causes of financial exclusion at your institution?
AS: I think the fact that students come here, they start to study and probably some of them will have the money for the year or will have the money for six months and they will think well hopefully something will happen along the line and after the six months or after the year, nothing happened and there is not money anymore. I think that is a problem. I'm trying to think now. That's what I felt with most of the students. They will come here with the money for a specific time period say for example with R3 000,00 and then there is nothing, which causes a problem. And then another problem is basically I think the fact that some of their, it will sound we are the results because there are certain ways that they can be assisted. But when the marks are extremely low they cannot be assisted and that causes them not to be able to pay their fees.
NM: What do you think may be the causes created by the students.
1 AS: The causes created by them are just plainly the fact that they, a lot of them take chances, they don't study. That is a generalisation. If their results are better obviously they will get more financial assistance. And I think some of them, not all of them but some of them do waste their money on things like cell phones and you can see some of the poorest students walk around here with cell phones and it is always wasteful for me. It is an expense. I have to say one of the other problems I think that is caused why they cannot pay their class fees because they don't have residence, they stay for example if Brixton and those private areas in a small room which is highly expensive and it is more that R500,00 a month for just a room, which is expensive to pay and that money is eaten up and then they can't pay their class fees. If it is possible for them to have residence here it is a bit cheaper and they would have more money to pay towards their class fees. It is difficult to say specifically what the causes of the students are I think if you really take it down to the basics it is just that they don't have money.
NM: So as a financial assistant in this faculty what, do you think are the causes created by the faculty?
AS: I really don't think, I have to say and that is my honest answer I'm not just saying this. I don't think that we cause them not to pay. I think that we have in fact have so much benefits for them that we try to get the students to get the finances to pay their studies. If we find a student and see that they are deserving not necessarily that they are students that are getting 78% but they just passing their subjects or that they have potential. We have in our faculty specific ways that they will be assisted to get the finances to continue to pay their studies. I'm not quiet sure now but I'm just trying to think, we are not going around to schools and say listen we at our faculty we have bursaries for students. What we usually do is we wait for students to come to us for example we have only x-amount of money.
2 In the first year for example they will come to us and say we don't have money or we will recognise them in class and then identify them and say listen would you like to apply for a bursary. We prefer our bursaries to be mainly for students who have at least proven themselves for the first six months and then our senior students so they know, we put it out by word of mouth as far as we can let them make announcements in class and so on. With regards to accessibility if they know, we don't really put up posters or what ever. It's really by word of mouth or by what is said in class. But they can any time come to me with regards to any money that they need that they need money for, medicine, money for food expenses, money for travelling expenses, money for class or living expenses. And then we give it to them but we don't really have a sort of an advertisement going around stating that we have this bursary at the faculty of law.
NM: As the faculty how do you collect this money for bursaries?
AS: We took money from our own funds about R100 000.00 from our own faculty funds and then if I'm correct the University also give us a R100 000,00 out of their own pocket. That is really an innovative thing I don't know if there is any other faculty that do this, I don't think so. This is totally separate from the University bursaries. This is totally separate from TEFSA. This is something that we did out of our accord, decide that we want to assist our students. And then we have the bursaries as I said of R100 000,00 from the faculty funds and then because we do it the University puts up a R100 000,00 as well. Then what we do we don't just give out bursaries we leave them and then they have to enroll in a mental programme which I am actively involved in as well. I see them once a week, help them to adjust to the University life because most of the students that we give the bursaries to are really from disadvantaged places. They really come from far places that they really have difficulty in adjusting so I walk along them for years. Some of my first mentor
3 students are finishing now at the end of next year. They come to me every week, we discuss specific aspects with regard to studies, with regard to development as a whole, with regard to problems that they have. I want to be accepted, and become their friend, if they need money or need something they can come to me. We have found that it is really beneficial to the students that we have started with. I specifically think about one student that we've identified him in his first year, he was living in a house in Brixton, he was living in a backroom. There was no real facilities, I don't think he had any electricity after ten at night. He only ate bread, that's the only thing he had, morning noon and night and we identified him and he was doing extremely well and from then we have assisted him. And now through the process what I also do I try to find them part-time jobs at the university, which is also a good thing they use most of my mentor students I do find jobs for. He is working at our Law Clinic in Alexandra and he is really developing to such an extent that when I look at him I stand in awe because from his second year he lives in residence and he is an amazing person. I think what we find is that it's just amazing I promise you sometimes if I think about it sometime I just stand back and I think I would never be able to do that they things that they do.
NM: Because there are policies at the University of collecting fees and whatever, what do you think are the causes created by those policies.
AS: You mean by de-registering them. Unfortunately it's difficult but you know I think it has to be done and I don't know if there is another way around it. We need to basically before we get to that point were we are in so much debt we need to stop it because immediately if we are in that amount of debt we will not be able to give the students that are paying sufficient education. We need to keep the standards up and unfortunately that entails if you can't pay we need to de-register you. I really can't see a way
4 around it and I really found that there is really so much help for the students. I never had one student that came to me that needed money unless you were not up to standard with results that went away without any money. So I do think and I can only speak for my faculty. I do think there are help. If a student really have exhausted all his options and he still didn't get financial assistance, I think there should be a reason why and then I don't think it's with regard to the institution. I think maybe then it is the student and I know it is generalisation, but if I look at TEFSA I mean TEFSA really helps everyone and even with us, they don't have to pass all the subjects we just have to see they have potential. I think that is the basics. If a student works I can promise you there will always be assistance for that student. So I don't really think that it's the institution fault, I think they need to do something, but what do they do if a student does not pay there is no way where they can get the money from somewhere else. We need to keep the standards up and let those who do pay at least get a good education. So I do think unfortunately I agreed with that. Sometimes it is heartbreaking but what can you do, I really can't see a way around it.
NM: I heard you earlier mentioning the R100 000,00 that they allocated to your faculty, how do you generate those funds?
AS: The first R100 000,00 comes totally from our faculty funds. That is what they generate through lectures and income and diploma and I don't know where it comes from but with all our faculty funds that we get with regards to payments I don't know how that's how we take it from there. That is our faculty funds that we will use for day-to-day living or running costs it comes from this there. I mean the other R100 000,00 the University decided actually only this year because we take it from our own funds that they will also assist us with a R100 000,00, that's where we get the money from.
5 NM: What do you think are the consequences of financial exclusion. AS: The consequences is horrendous, that we will sit with people, I'm gonna probably contradict myself now but there can be people with potential that are not developing their potential and that is terrible because I think people that is not developing their potential is frustrated, they are not developed as a person as a whole and has got negative effect on society. And also people that will feel this hardship and loose their hope and maybe turn to crime or maybe they will feel that they don't want to continue. I think the consequences if terrible. I wish there were a way that you can get around it and if you find that way through your research you must please inform me. It's hard I think if we look at it if it's the parents that have to pay for the child and the child is excluded because the parents doesn't pay it's hard, but then again as I've previously mentioned if the parents don't have the money and the child has gone through all it's options and still did not get financial assistance even for a R1 000,00 we need to ask where the problem is. Is it with the institution not giving them the money or if the students is not working hard enough or maybe in the wrong field, maybe the studying BA and should be studying Bcom, something like that. I think that is a problem. Another thing I think that maybe will maybe let you think a bit that I have recognised that people are coming to study at a later age, they've worked for a while to get the money, that type of thing and the problem that you find there is when you are over a certain age, when you are over twenty nine I think you're not admitted to live in the res. That causes a problem because now where the student maybe might have had the money to live here or could have gotten a TEFSA loan including paying for res here he is not allowed to stay here. So he has to stay outside, which makes it more expensive. I think our university needs to make a little bridge between that, that people come to study at an older age what can we do to assist them with accommodation so that TEFSA will pay for that accommodation and they can at least study. I don't think
6 that a student must still sit and worry where do they get the money from for accommodation. If there are things like TEFSA who will give them that money and they will at least have the money from their working experiences to pay for their tuition. I think there is a huge gap that needs to be filled. I can not tell you how many students I do have that went to matric only in their twenties, decided then that they want to study, went worked for a while. I agree that they can not stay with people who is 19, 20 but then another place for them to stay. Now they come to study and they doril have a place to stay. I can take you now to one of my students who lives in Triomf in a house in a room with only a mattress doesn't even have a bed. It's not the best facilities to live in and that's the facilities that they have to study in and if they don't live properly, they can not perform at their peak, I believe that and that will influence then again their application for bursaries because they are not performing. Can you see the connection there? It's really a problem. I do think if that can be addressed or even just buying a house and let people stay there if they are older than a certain age I think it needs to be addressed and then if TEFSA at least be able to pay for it.
NM: What do you think are the solutions to the problem of financial exclusion.
AS: I think what they should do, the parents should know before they start what it is going to cost approximately for the whole time. I think that if we really want to accommodate students that are older that has been working that it will also stop it just that they can have accommodation. There is a lot of students that come here for example from rural areas. They don't really know how the process works as well, they come here, they register on the day they have to register and then they apply for accommodation. But they can not get accommodation because it is too late and then what happens, they end up in one of these rooms and again TEFSA, I'm talking of TEFSA now for example for accommodation, TEFSA assistance then
7 you need to live here on campus. This causes a problem. I think one thing would be to let the parents know what exactly it's going to cost and I think another way will be of looking at ways of informing the students before they come here what the cost of the accommodation and that they have to apply for it before they get here, whole process that they can live at res. I think another problem is that, I don't know how morally right it is to go to the far areas and get students and you know that if they come and live here and you know that the parents are poor if they come and live here that they don't have the money to maintain themselves. Then they should rather go to universities that are in their areas that is easier for them to live closer, maybe that type of thing. I think that happens as well. Then I think again students need to know that if they are willing to perform again I'm not even talking about 55% I'm talking about just passing most of their subjects that there will be financial assistance and then the ball is in their court to take it from there. And to look for financial assistance, a lot of students don't look for it, they just sit there and complain. I have a student now that have applied for a bursary but his marks are 30%. I can not give a bursary to that type of person. I have known him for a while, he's really doesn't pull his weight, he doesn't attend the mentor section and that type of thing. That is not a good reflection. You need to build up your character, you need to be a person that they feel that they can invest in. I have to be honest most of our students that we have given bursaries to are people that we can invest in and we've seen the results and it is wonderful and I think that if we maybe can get it in all the faculties, that the faculties will take out their own funds, an x-amount and say we will assist students that are only in our faculty, that is for students that sometimes just fall through the process, that they didn't know about the process that come from far places that don't have a TEFSA loan the parents only have the money for the registration fees and they come and study and we can pick them up through the sifting process because they have fallen through the whole system. It's a sort of a net that we've got here, you pick them
8 up there and you can assist them to go through the first year and then from the second year onwards they will know a bit more. We are the only faculty that have this type of mental programme where we specifically help to develop people that are not only our bursaries but let's talk about our bursary students, students that need a bit of development with regards to adjusting, with regards to being at ease with the whole fact, imagining you come from a far place in the Free State suddenly to Johannesburg and you are at this university and you don't know what is going on it has an affect on your results, so you need to adjust, you need to get that perspective and then your get better results and then you will be able to get financial assistance. I do think that all the faculties need a person that are there to see where there are students that are financially needy that has the potential so that they will not be financially excluded. I mean that is a sad thing if someone comes here that has a lot of potential do pass their subjects but just don't have enough information to apply for bursaries and then are excluded. I think there is a moral obligation on all the faculties to have someone there to assist these students.
NM: On the basis of what you have said I'd like to take this opportunity of thanking you on your contribution. I think you have made a lot of contributions not towards my dissertation only but because this dissertation will help a lot of disadvantages institutions and it will also help historically disadvantaged institution to improve on what we are doing so your contribution does not only help me to pass my managers dissertation but it will also contribution to the society at large. I thank you.
AS: If you want to talk to some of the students that we have in our mentor programme and ask them what they think in this regard, I'm willing to put you in contact with at least with one of them. I think you can just contact me, I think that will also be a good idea, what they think what needs to be done.
9 INDIVIDUAL INTERVIEWS BETWEEN MS MABUZA AND THE HEAD OF A SCHOOL OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA).
KEY: NM: The Researcher HOD: Head of a school
NM: My first question will be, What do you think is the reason for financial exclusion at your institution.
HOD: The reason is a historical one. The different institutions are not equipped in different sections equally, as I have said the reasons are historical. White historical institutions they had the resources in getting finances than the Black institutions. In terms of our institution, it is a historical Black institution. The resources are limited, the students that get into our institution are different students to other historical institutions. So their financial exclusion therefore is really in terms of their background as students and our background of institutions because for me financial exclusion is when we have students who are in terms of finances are not admitted in our institutions. And in terms of our background and limited resources then those students are not able to register financially not academically. So the reason is the background of the students that are getting into our institutions and the reason for our lack of resources. I don't know if you are going to have those questions, but for instance in White institutions they have got some loans. They make arrangements with the banks so the students will never get financially excluded because of mechanisms in place for them to use those facilities to get registered whereas with the blacks it has been difficult and its difficult now to make such arrangements with the institutions like that.
NM: What about the student role in financial exclusion?
10 HOD: What I think is really the way it has been it was to protest. They are not happy about some students being excluded in terms of finances. So largely the route has been to protest. But I think we have seen lately in our institutions where we played a mutual role to make some suggestions of how to support students who are not having money. This recent registration in our second semester, we had the leadership of the SRC suggesting that some of their money they will loan students from their coffers. So I think it has really shifted. One has not seen how consistent will that be. Their role supporting for trying to give some solutions to the problem of financial exclusion. So they have got a role, they have played role in different ways to protest against these. Now I think they have supportive role of trying to bring solutions to the problem.
NM: What are the causes created by student to the financial exclusion?
HOD: The causes are historical. Probably I think a large number of students they don't contribute that way. It is not of their own making but because of historical reasons that I have given. They come poor backgrounds. To a large extent they have not contributed to the problem. In .fact they found themselves in the problem. The causes are surrounding them. But I think now they also contribute and this is also the kind of situation they find themselves in. You know the culture of non-payment also in a way maybe not directly contribute to people at the end in financial exclusion, because I think in some way some students they don't consider paying their fees as a priority. They have got other priorities and when therefor the budget is being done for them to come to university they find that imbalance and in the end they have got few rands for registration than what they have for other things. So in that way you will find people are excluded it really is a matter of planning what to get first and what not. So in that way they contribute, but largely they find themselves in that problematic situation.
11 NM: What do you think are the causes created by admin staff, that is financial aid office?
HOD: Again maybe planning. We have a number of schemes towards the students. I think if planning is not well done they might have problems. For instance we might miss out the money from those particular financial aid for instance together with other sections did not get the results of students on time so the money will be send back without assisting those students. Related to planning organisations if the students are not identified who could easily benefit from those fees, from those loans, that really will be part of the problems, the students who are to be assisted will never get help. Well it is administration, it could financial aid, could be the academic division the results are released. But the major causal of factor will be the planning. The deadlines for everything submitting all that information for money to be released and so on. So they must work on to see we have got all the records of students, we have identified this, we know who have qualified and who did not qualify.
NM: What about the causes created by the policies and the procedures at the University?
HOD: We work with human beings. We might have a good policy but implementation is something else. In most cases universities have fairly reasonable good policies but they are not implemented. In historically Black institutions I think we keep on bending certain rules because of the situation we find ourselves in. For instance if the policies that are clear about processing of results when the examination are to be returned, how are the results to be released and so on that is clear in our institution but you'll find the environment the way things are they are delays and then which ultimately made some of the issues like results not to be released
12 on time and that will affect what I said about processing those who deserve to be supported as well. There I think in our policies on paper that are very good. I think we do not necessarily complain about that the problem is in the implementation of those policies.
NM: What about academic in as far as identifying students who are academically deserving?
HOD: We have got a centre called Centre for Educational Advancement and part of its responsibility is to look at the supporting role for staff looking at the supporting role of the students. Both with those who are doing excellent in their work. And then that is done under the academic support role development committee. So our duties are co-ordinating within the centre. So academics, their role therefor because of that centre for educational advancement because of that committee. Academic support committee are to identify those students who are weak and then report them on time and then so that each lecturer in that area is to at look remedial strategies to support those students. Equally for those who are doing well they are supposed to identify them and further be supported. So they have got a role to be done and then also there is a system which has be put in place, which is staff evaluation by the students. So the role of academics will be to be interested to know what is the feedback from the students and the feedback will indicate students who need assistance. Students who would say you are very slow please push forward I need more on this and this one. So they have a very crucial role to check their evaluation to identify students and so on.
NM: What is the role of academics in as far as financial exclusion are concerned?
13 HOD: I think in terms from the point that was just mentioned if they've identified students who are good, doing very well in class they could now interested what is the well being of the student. This student paid the fees that is a support. We don't have to support students academically, but emotionally we have got to look at the background of the students. So if the lecturer or academic is interested to know the environment in which this good student is working. Well ultimately you will discover that this student in fact has not been able to pay a cent. So therefor they will say what are the possibilities, this student has passed all courses and then he or she will refer this student to the financial aid who will now appropriately assist this student. So they could assist in solving the problem of financial exclusion and equally for those who are not doing well. They will make sure that before the end of the semester, before end of the year they are being supported, their results being improved. Their results will make them to qualify for TEFSA.
NM: What do you think are the consequences of financial exclusion?
HOD: That is too much, too much for the country, remember, in the higher education we talk of access, we talk of equity, this is about education at tertiary level. If you financially exclude people you are not giving access to students and you are talking about Black students. You will never have equity. Those who are poor will remain poor. And those are not good for indicators for the country. So for the country is bad for our institution our enrollment go down because we will keep on excluding those people every time. We will have instability at the institutions every year or every semester you'll have to address the students. They will demand that you scrap certain things and so on. Don't regard those who are owing. You'll have instability and problems. It will dented the image of the institution and then you will have very bright students not being brought into the institutions because they will be told you are good in class you are good
14 intellectually but please go home. We don't need you because we need our cents and you don't have our cents. So if you really sent that image, at all levels I see this having very far reaching consequences which are very negative.
NM: What do you think are the solutions to the problems?
HOD: The solutions are to follow what is suggested in some of the policy documents and white paper. Creating access will mean trying to have access to certain institutions like the banks for instance. I think those institutions should show some social responsibility. Loans for instance that are to be paid. It is difficult for us, these institutions historically having these problems to give loans to students, but banks could give the loans to the students and those students when they work they could now repay them. I think we need to establish that relationship with the banks but equally they must change their attitude to our Black institutions. I think from there is to work on the issues that I've mentioned about planning organisations to make sure that results are on time to make sure that we have identified our weak and well doing excellent students. So that all these have been solved, so that we could actually access this national fund which some of the students are not able to access. I think the starting point will be to use those resources that are there like the fund is to make sure that students are able to access it. But there are also those resources that are difficult to access now. The bursaries from the institutions like banks and private sector in general. The loans you know different types of assistance whether it is a loan or the bursary. Those are the solutions that I see. And which are what you'll find in White institutions the bursary schemes are well in place so students will never have any problems about getting entry. What they have got to do is worry about performance. But Black students has got to worry about performance, about the financial support. That is what I see as a solution to getting
15 those bursaries and getting also those organisations and management to plan.
NM: On the basis of what you have said I want to take this opportunity to thank you for participating in this research and I will bring a report to the institution to form part of a contribution to solve the problem of financial exclusion at historically Black institutions.
HOD: Well, thank you very much.
16 INDIVIDUAL INTERVIEWS BETWEEN MS MABUZA AND THE ASSISTANT REGISTRAR : FINANCE OF THE UNIVERSITY OF THE NORTH AT QWAQWA (UNIQWA).
KEY: NM: The Researcher. AR: Assistant Registrar: Finance.
NM: My first question to you will be what do you think are the reasons for financial exclusion in your institution?
AR: The reasons being that maybe the student owed universities very high amounts in the previously disadvantages Black institutions, the problem is that previously the institutions were actually registering students who didn't pay. But now they have turn around because the government have to cut subsidies. They have actually to get some other means for financing their activities. I think that is a good reason. They have to get some extra money to actually substitute the down cut of government subsidy.
NM: What do you think are the causes created by students in as far as financial exclusion are concerned?
AR: There are genuine cases where students do not have money or some of the parents don't have any means because some of them are not working and some of the them are pensioners, but there are cases were students receive money to pay but they don't pay the money to the university. And the other reason that one has actually come across let's take for an example one students that attends at the historically Black institution and the other student the attends at. Historically White institution, the parents will pay for the student attending at the historically white institution and not pay for the one attending at the historically black institution. With the white
17 institutions, if you don't pay you don't get registered, but with the black universities, if you don't pay, you still get registered. That's the reason why students don't pay.
NM: So what do you think are the causes created by management?
AR: The causes that are created by management are the same they would allow students to register previously, even though they were owing. But now because of the pressure of actually the subsidies being cut down by government, they are having the pressure of now forcing the students to pay.
NM: About the causes created by the policies and procedures of the institutions.
AR: Like I'm saying previously in the historically Black institutions students were owing high amounts. Management . of the institution will allow the student to register. That also contributed to the problem of actually having this problem of forcing students or excluding students at a later stage.
NM: What are the consequences of financial exclusion?
AR: One of them will be that student numbers diminishing in historically Black institutions. We will be having problems of facing retrenchments.
NM: How are your policies and procedures in collecting debt from students?
AR: Two years back the institution actually came up with a team called counseling team whereby the students are interviewed and the parents are telephonically interviewed if not able to come to the institutions and make arrangement for payments and whenever the parents have actually
18 promised to pay a certain amount, all the particulars of parents and the agreements or arrangements that are made with parents are being actually put in black and white so that they can be followed up with parents who do not pay.
NM: So what arrangements or procedures do institutions employ to facilitate a person with of outstanding debt?
AR: Our institution will, during registration, ask 20% of the outstanding debt and 80% of the current debt. That is the amount when the student register will be owing for the current year, 80% of that or vice versa. 80 percentage of the outstanding debt and 20 percentage of the current financial year.
NM: Are those policies and procedures contained in general agreement for instance with the SRC?
AR: Yes, the student representative formation is fully involved during discussions of fees and how collection of student debt has to done.
NM: Are there other alternative assistance available to financially needy students at your institutions?
AR: Yes, we have a university bursary also and university loan, there is also financial aid which is actually bulky financed by NSFAS.
NM: What are method do your institution use to assist financially needy students?
AR: The parents of students who are working in the government are currently using stop orders to try and resolve the problem of students.
19 NM: What do you think may be are the solution to the problem?
AR: The solution to the problem is that more bursaries should be arranged for students who are doing well. Even average students should actually be helped through bursaries and the very same NSFAS student loans.
NM: What are the consequences of financial exclusion in your institution?
AR: One of the problems is that you won't have students in the near future. Our country will be faced with a lot of matriculants without any academic qualification of which will not help our country in .future.
NM: On the basis of what I've asked you I want to thank you very much in participating in this programme of mine. I think I will bring a report in a form of a mini-dissertation, just as a way of saying thank you for your contribution.
AR: You are welcome.
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