Name and discuss two ways of funding tertiary education

On this page, we help students to answer the following question: “Name and discuss two ways of funding tertiary education.” This is a vital topic for Life Orientation Grade 12 Term 1, specifically within the module on “Careers and Career Choices.”

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Quick Answer

Ways to Fund Tertiary Education:

• NSFAS (Bursaries): Government-funded support for students from low-income households. It covers tuition, accommodation, and allowances.
• Student Loans: Money borrowed from a bank or institution that must be paid back with interest once you start working.
• Scholarships: Financial awards based on academic, sporting, or artistic excellence that usually do not require repayment.
• Outcome: Proper funding reducesfinancial stressand helps learners focus on theirNSC exam preparation.

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Discussing Ways to Fund Tertiary Education

For many South African matriculants, the transition between school and post-school destinations is heavily dependent on financial support. Understanding how to plan financially for further studies is essential to avoid intrapersonal conflict regarding career choices.

1. The National Student Financial Aid Scheme (NSFAS)

NSFAS is the primary government-funded bursary scheme in South Africa designed to assist students who come from poor and “working-class” backgrounds.

• Discussion: Unlike a loan, a NSFAS bursary does not need to be paid back, provided the student meets the academic requirements. It covers the cost of tuition, registration, and provides allowances for food, transport, and learning materials.
• Impact: It promotes human rights by ensuring that socio-economic factors do not prevent capable students from accessing higher education.

2. Student Loans from Private Financial Institutions

When a learner does not qualify for NSFAS but lacks the personal funds for university, they often turn to student loans offered by major banks (e.g., Standard Bank, FNB, Nedbank, ABSA).

• Discussion: A student loan is a formal agreement where a bank pays for your fees, but the money must be paid back with interest. Usually, a surety (a parent or guardian) must guarantee the loan. During studies, the surety often pays the interest, and the full capital repayment begins once the student has graduated and found employment.
• Impact: While it provides immediate access to education, it requires careful financial decision-making to ensure the debt does not become a source of excessive stress in the future.

3. Scholarships and Private Bursaries

Scholarships are usually “merit-based” awards given to students who demonstrate exceptional talent in academics, sports, or the arts.

• Discussion: Many companies and NGOs offer bursaries to students pursuing specific fields (like Engineering or Accounting) to build a future workforce. These often come with a “work-back” clause, where the student agrees to work for the company for a set period after graduating.
• Impact: Securing a scholarship improves a learner’s quality of life by removing financial barriers and often providing mentorship and job security.

Why Funding Research is Important

Failing to secure funding can lead to interpersonal conflict with parents over financial values. It is crucial for learners to check admission requirements early and apply for funding simultaneously to ensure a smooth transition into their chosen career path.

Reference for Students:

• Subject: Life Orientation Grade 12
• Textbook: Focus Life Orientation Grade 12
• Chapter: Chapter 5: Careers and Career Choices
• Topic: Financial planning for tertiary education.