27 March 2009
	FUNDING - OPTIONS Counting the cost By Zukelwa Solomon with additional reporting by Jonathan du Preez

Don't let your university dreams be put on hold by a lack of finances finding study funding may just be a matter of knowing where to look Higher education in SA doesn't come cheap. And with university fees increasing by about 10% each year, the prospect of tertiary studies is a pipe dream for many, particularly with the global economic situation, where threats of job losses and high living costs are constraining households' disposable income. As business entities, universities tend to set tuition and accommodation fees in line with inflation. But currency volatility can also push costs up. Busisiwe Sithole from the University of the Witwatersrand's financial aid & scholarships office says the institution orders many of its consumable products (textbooks and specialised equipment, for example) from abroad. Because the rand is relatively weak, the cost of printing, and running libraries and laboratories exceeds inflation. The resultant increase in fees means that matriculants enrolled at Wits this year will pay between R23 120 and R28 600 for the first year of their BCom and R25 900 for a BAcc. At the University of Cape Town, fees increased by 13,2% this year, bringing the cost of a BCom degree to between R27 000 and R31 000. The University of Stellenbosch has also felt the effect of the tough economic times. Senior director for communications & liaison Mohamed Shaikh points to the surge in electricity costs and escalating food prices as just some of the factors contributing to an 11% fee increase at the institution. Last year a BCom at Stellenbosch University cost about R17 403; this year it costs R20 803. Residence fees cost an additional R15 690 to R19 500. The cost of education in SA is prohibitive, and for many prospective students finding funding for further education is a pressing concern. FM Campus looks at some of the options available to you. Loans National Student Financial Aid Scheme Each year, the National Student Financial Aid Scheme (NSFAS) makes money available for financially needy students who show academic aptitude. This year, the scheme has been allocated R2,1bn from the national budget, allowing for about 130 000 students to access higher education. Wits University has accepted 3 093 undergraduate students for NSFAS aid, granting each a loan of up to R43 000. Similarly, the University of Johannesburg's financial aid office says 7 153 students had been accepted for financial assistance by the end of January (the number was set to increase after a review by the appeals committee). An NSFAS loan can take the financial pressure off you while you focus on your studies. A UCT BCom student (who would rather not be named) says she does not really feel the effects of the high costs as she is fully covered by the financial aid scheme. She'll only have to pay back the loan from the scheme once she finds work after graduation. "The university and government work together in funding my fees, including adequate allowance for books," she says. Eduloan EduLoan is the only dedicated educational financial services company in SA. The company provides applicants with full-time jobs the opportunity to either pay for their own studies or sponsor a student's. The company offers loans to cover registration fees, study fees and outstanding study fees, as well as books and study accessories. Bank loans Retail banks also offer loans to students, with the general rule that interest on the loan is payable while you study, and the balance is payable once your studies are complete. If you're going with a commercial student loan, make sure you shop around: different banks offer different packages and you need to find the one that best suits you. Bursaries The global financial crisis has made it more difficult to access finance. A report in the Cape Argus newspaper in February 2009 reported that the student loan approval rates of two of SA's major commercial banks, First National Bank and Standard Bank, were down year-on-year - this despite an increase in the number of matrics qualifying for tertiary education. The issue, according to the report, was one of affordability: the conditions of the National Credit Act, together with the poor economic climate, have made repayments less affordable. Nhlanhla Molepo, a third-year humanities student at the University of Johannesburg, says he has been applying for financial aid since first year, but without any success. "I have always struggled to pay for my fees because I don't qualify for a bank loan or for NSFAS funding," he explains. Molepo's financial aid application at the university was unsuccessful because his mother's gross income exceeds the scheme's requirement; and the banks rejected his loan application because his family's spending and debts are too high. "If it wasn't for my part-time job, which earns me about R1 200 a month, and the birthday bonus my mother receives [from her job], I am not sure we would manage to pay my fees," he says. For students in Molepo's situation, accessing bursary funding is the most sustainable way to pay for studies. Many companies use bursaries to uncover and develop talent. Students who show academic aptitude may have their studies funded (in full or in part) by a national or international firm. But it's a mistake to assume a bursary offer means a free ride - there are various obligations you'll need to meet once you' ve been accepted into a company's bursary programme. "I am required to send in my results one week after official publication, make myself available for vacation work and keep the company posted on anything that affects my studies," says Mpumelelo Hadebe, a fourth-year BAcc student at the University of the Witwatersrand and bursary holder with accounting firm Grant Thornton. "It also involves attending scheduled meetings at my university with the company's representatives." Webber Wentzel bursary holder and third-year Wits LLB student Razina Baba says she needs to "maintain a good overall average and conduct myself properly at all times". Finally, there's the biggest condition attached to a bursary: the long-term obligation of "paying" the company back by working for it once you've completed your studies (as well as during the holidays, in some cases). Though some consider this a burden that limits post-study work options, it does mean you have a job lined up on graduation. Scholarships Generally awarded on academic or sporting merit, scholarships are no-strings-attached, non-repayable funding options. Your university's financial aid office will be able to provide you with details about the numerous national and international scholarships on offer. In addition, if you're looking for research funding, the National Research Foundation (NRF) should be one of your ports of call.