SA needs to consider funding students in private universities

As the graduates of the class of 2024 write their final exams, many of them are surrounded by a palpable mix of hope and fear. Although they are nearing completion of their secondary education, the future remains uncertain for many of these students.

For some, the journey may end here, not because they lack the potential or ambition to advance through college, but because the financial hurdles are insurmountable. The reality is that while South Africa has made progress in improving access to education, significant gaps remain, particularly in the funding of higher education at private institutions. If these gaps are not closed, they will further exacerbate inequality and limit the potential of thousands of worthy students.

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

Public universities have limited places, and vocational colleges, while offering more capacity, often lack the resources and infrastructure to meet growing demand. As a result, many students have no choice but to turn to private institutions, which offer high-quality education but are often financially out of reach for people from low-income households.

The cost of studying at private institutions is prohibitively high for many SA families. In a country where a significant portion of the population lives below the poverty line, being able to afford higher education is a luxury. According to Stats SA, over 55.5% of the population lives in poverty, with many households relying solely on welfare to make ends meet. While these grants are vital, they are far from enough to cover the cost of higher education. The child maintenance allowance, for example, is just R510 per month, an amount that pales in comparison to the annual tuition fees of R30,000 to R80,000 that many private institutions charge.

Under such circumstances, it becomes impossible for many families to choose between education and meeting immediate financial needs. For households in rural areas, where options are even more limited, the prospect of sending a child to a private institution becomes an unattainable dream. This is not just an affordability issue, but also a social justice issue. Education should be a great equalizer, a way out of poverty and towards opportunities. But for many South Africans, the financial barriers to higher education are simply too high to overcome.

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

A pragmatic model for this would be for the state to subsidize part of the tuition fees for students at private institutions. A subsidy of 40-75% would strike a balance between ensuring that public institutions remain at the heart of government support and recognizing that private institutions are essential to meeting the demand for higher education. This approach would provide much-needed financial relief for students who would otherwise be excluded from continuing their education simply because there is no space in public institutions.

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

Education is a public good and it is the responsibility of the state to ensure that all citizens, regardless of their socio-economic background, have equal access to it. In many developed countries such as Germany, Norway and Finland, higher education is either free or heavily subsidized, even for students at private institutions. These countries have recognized that investing in education is an investment in the future that will pay off in the form of a better-skilled workforce, greater economic productivity and reduced inequality. South Africa must also adopt this forward-looking approach if it is to address the deep inequalities that continue to plague its education system.

The sector’s education and training authorities (Setas) can also play an important role in closing the gap in access to education. Setas is already involved in skills development and funding of corporate training, and its mandate could be expanded to include funding for students at private institutions. Some of the Setas, such as the Seta wholesaler and retailer, have already led the way by providing funding or scholarships to students enrolled or enrolling in private institutions, but more direct policy intervention could also enable other Setas to help as well. This would not only help address skills shortages in critical sectors of the economy, but also provide much-needed financial support for students who are unable to secure a place at a public institution.

Calling on the government to fund private colleges is not about shifting resources away from public education. It’s about recognizing that the current system is leaving thousands of students behind. These are students who have worked hard, passed their high school exams and have the potential to contribute to the country’s development. But without financial support, their dreams of higher education remain out of reach.

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

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