Probe Into The National Student Financial AID Scheme

With the popularization and privatization of higher education, budget shortfall of the higher education institution become a prevalent problem in the word. As an effective financing mode of higher education, the student loans get prevalent acceptance, been used and developed by many countries. Compared with developed countries, because of the incomplete social credit system, and scarce capital, developing countries has more difficulties when they carry out a student loan system. As for the developing countries, South Africa has relatively implemented a successful National Student Financial Aid Scheme(NSFAS), and which has become a typical mode case of student loans system in the world. This dissertation attempts to probe into the reason for the success of National Student Financial Aid Scheme.Firstly, the dissertation studies on the factors which are closely connected with higher education,such as historical, social, economic factors. From a historical perspective of recent social developments,the racism remains the central determinant in higher education access, so are the material resources and the opportunity.This kind of demand for increased investment in student financial aid must be seen against a backdrop of growing inequality in South African society, chronically high unemployment and a shortage of skilled workers. Then the dissertation analyses the motivation of various relevant stakeholders, including government and further education and training Institutions and students. At the same time, the dissertation details the background of the National Student Financial Aid Scheme (NSFAS).It gives a brief history of the organization and outlines the context within the Review Committee which has conducted its review. Then on these bases, the thesis thoroughly analyzes the elements of NSFAS starting from the source of capital, eligibility, distribution, loan amounts and limits, administration of loans and bursaries, interest rate, repayment recollection of the student loans. Moreover, this dissertation will focus on three key determinants—the source of capital,eligibility,repayment recollection of the student loans. Finally, it summarizes some relevant conclusions:the number of students benefit from NSFAS is increasing; this project has a positive impact on higher education enrollment; and it promotes students’ social constitute diversity.Besides, this dissertation assesses the strengths and shortcomings of NSFAS.The strengths include stable source of funding to protect the continuity of the loan;Effective cost control and capital management;The explicit object of the loans is conducive to target group which have participate in this project;The effective loan recovery ability. On the other side, the shortcomings of NSFAS include racism which remains the central determinant for South African Higher Education access and opportunity of NSFAS; The form of origination and the increased numbers is not suitable for the lessen amount of loan capital; Low rate of students’ academic performance does not facilitate recovery ability.Grounding on upward analyses, the thesis analyzes the student loans in China,concluding the fundamental reasons for NSFAS’s success, which include that the government has implemented the ideas of pursuing educational equity by means of legislation,not only engaging in financial resources,but also conferring some special power to the relevant agencies to improve and help the student loans to recovery. The means test is a positive way as it helps to identify students who are qualified for applying the financial aid.