THE Fees Must Fall campaign of 2015 has placed the financing of higher education at centre stage in the political arena. Students complain that fees have increased at rates higher than consumer price inflation. This has indeed been the case from 2009 to 2015, with the rate of fee increases exceeding consumer price inflation by two percentage points on average. Most commentators cite the decline in the share of government subsidies in total university-sector income (for all universities combined). The total income comes from government subsidies, student fees and private income. In 2000, the government subsidy contributed almost 50% of total university income, before it fell to roughly 40% in 2005, where it has remained since. However, a falling subsidy ratio does not necessarily mean subsidies have declined in nominal or real, inflation-adjusted rand terms. Neither does it mean subsidies have fallen in per-student terms. The real subsidy per student (expressed in 2010 rand) has actu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.