The South African government has developed a comprehensive financial assistance program for undergraduate (first degree) education National Student Financial Aid Scheme (NSFAS). However, this Does not extend to postgraduate programs. Therefore postgraduate education remains a luxury for many students, even though national development plan The target is to have more than 25% university enrollment at postgraduate level by 2030.
As academics in the Faculty of Economic and Management Sciences at the University of the Western Cape, we examined the impact of students receiving financial aid for postgraduate study. student in our research There were new postgraduate students who registered at the Faculty in 2019 (the last normal academic year before COVID-19).
Less than half of students received financial aid. We found that support appeared to have an impact on completion of the study programme, particularly the postgraduate diploma. We believe there is a case for greater investment in supporting postgraduate education.
Statistics South Africa's Quarterly Labor Force Survey data Shows that job seekers with only matriculation (Grade 12 school leaving qualification) have a 35% chance of being unemployed. The unemployment rate among job seekers with a first degree is very low at 12%. And among those with postgraduate qualifications it is only 5%. Furthermore, our calculations from quarterly labor force data show that postgraduates earn on average about 38% more than those with only a first degree.
who received financial assistance
We analyzed students' demographic characteristics, financial aid receipt status, and academic outcomes. A total of 623 new postgraduate students enrolled in the Faculty: 186 for Postgraduate Diploma, 275 for Honours, 133 for Master and 29 for Doctoral programmes.
Some important findings emerged from the study.
First, only 45.8% of these new graduate students received some form of financial aid. In contrast, almost all graduate students in this Faculty receive NSFAS support. Of all four postgraduate levels, the proportion of students receiving financial aid was highest at the postgraduate diploma level (50.5%). It was lowest at the doctoral level (37.9%).
Second, for those who received financial aid, the university's internal financial aid was the major funding source (35.8% of students received this aid). After this it was done National Research Foundation (16.8%) aid and Finance and Accounting Services Sector Education and Training Authority Scholarships (15.1%, mainly for accounting students).
Third, the average amount of financial aid received for 2019 (in December 2025 prices) for Postgraduate Diploma and Honors students was approximately R55,000 (approximately US$3,400). At the master's level it was more than R110,000 (US$6,800) and at the doctoral level it was more than R225,000 (about US$14,000).
Fourth, the majority of financial aid recipients at all four postgraduate levels were African. This is consistent with social justice theory Previously disadvantaged population groups should receive support.
Various factors can impact academic performance, such as previous academic experience, on-campus residence, and whether parents and students themselves are employed.
But the fifth and most important finding was about the impact of receiving financial aid.
- It had the greatest positive impact on Postgraduate Diploma students: 81% of financial aid recipients ultimately completed their studies, compared to 71% of non-recipients.
- Similarly, for Honors students, 91% of financial aid recipients completed their studies; 89% of non-recipients did so.
- At the postgraduate diploma level, financial aid recipients took an average of 1.51 years to complete their studies, but non-recipients took an additional semester to do so (1.94 years).
- Among honors students, financial aid recipients took an average of 1.33 years to complete their studies. Non-recipients took slightly longer (1.45 years) to do so.
These findings suggest that financial aid had a positive impact on study completion and time taken to complete studies. Its impact was mainly at the postgraduate diploma level.
recommendations
We have three recommendations.
First, policymakers and higher education institutions should consider expanding financial support beyond undergraduate programs. This will be a strategic investment in educational equity and academic excellence.
This may be a difficult question considering South Africa Fiscal deficit Situation. Given the current economic environment, even private sector institutions may lose out on funds they receive from companies' profits.
Greater investment in postgraduate funding, at the same level as the National Student Financial Aid Scheme, is an adoptable strategy to reduce the country's poverty, inequality and unemployment and enhance human capital, productivity and even international competitiveness.
Secondly, it is important to determine whether Postgraduate Diploma and Honors students have been overlooked in the provision of financial aid. They form the foundation for further studies.
Ultimately, a wide range of indicators should be considered to determine whether a university has produced enough graduates to meet the skills needs in the country's labor market. These indicators may include:
- Average years taken to complete studies
- Completion rate (what percentage of students complete the study)
- Throughput rate (how long it takes to complete)
- Percentage of academic staff with doctoral degrees (which indicates the capacity of staff to supervise postgraduate students)
- Percentage of postgraduate programs that are also offered on a part-time basis. If students are also working then they will have to struggle more in their studies and it will take more time to complete it.
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