Financing higher education in South Africa: Public funding, nongovernment revenue and tuition fees

Abstract

The funding of public higher education is currently a moot issue in South Africa. Public funding has been declining and opportunities for winning non-government revenue remain limited. The frequent raising of tuition fees, which is one of the main strategies public universities have resorted to mitigate declining state funding is not without controversy. The article discusses these funding challenges. It argues that the current higher education funding conundrum will hamstring the achievement of the important higher education policy goals articulated in the National Plan on Higher Education. The article finally argues for a shift towards a redistributive funding model by changing the current formula for allocating funding for student aid to universities so that resources are redistributed in favour of the genuinely poor. By so doing, it is anticipated that higher education will be affordable for the poor who are generally sensitive to tuition fee increases, and also the rich, who can afford the current (high) tuition fee charges.

The Role of Higher Education and Industry in Supporting Career Goals and Decision Making

“…This can obviously be attributed to the current policy of redressing past inequities, following a racially segregated higher education system before 1994. Consequently, one of the five important policy goals of the National Plan for Higher Education is to achieve equity and diversity in the South African education system (Wangenge-Ouma and Cloete, 2008). On the other hand, white students considered 'information and advice from parents and close family friends' as well as 'friends and acquaintances' to be more important career decision making influences.…”

Tuition fees and the challenge of making higher education a popular commodity in South Africa

“…DoE (2007) shows that tuition fees per full-time equivalent enrolled student in nominal rands rose at an average annual rate of 12.2% between 2000 and 2004, and in real terms at an annual average rate of 4.8%. As a result of these increases, tuition fees have become the most important single source of non-government revenue for South Africa"s public universities, rising from 24 percent in 2000 to 29 percent in 2005 (Wangenge- Ouma & Cloete, 2008). Tuition fee increases have had multiple effects, and implications for higher education access.…”

“…Higher education will thus become a popular commodity. An expanded participation of the poor in higher education will in effect reduce the unacceptably high levels of inequality in South Africa, and result in many other positive externalities such as mitigating the skills shortages in the country (Wangenge- Ouma & Cloete, 2008).…”

“…This debate has ranged from the adequacy of public funding of higher education (DHET, 2010;Letseka et al 2010;HESA, 2008;Steyn & de Villiers 2006;Wangenge-Ouma & Cloete, 2008); the suitability of the funding framework (DHET, 2010;Wangenge-Ouma, 2010); to protestations against frequent tuition fee increases (DoE 2007(DoE , 2006HESA, 2008;Wangenge-Ouma & Cloete, 2008;Wangenge-Ouma, 2010). …”

The role of demographics in students' selection of higher education institutions

“…The third is a limited pool of matriculants, particularly African learners, who meet the entrance requirements to attend a university. The final factor is changes in the funding formula for HEIs which has placed greater emphasis on throughput (Wangenge-Ouma & Cloete, 2008). This has accentuated the imperative for institutions to recruit high-achieving students who are likely to graduate in minimum time (Smit & Schonefield, 2000).…”