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