The impact of students financial aid on demand for higher education in South Africa: An econometric approach

Abstract

University is paramount in producing graduates who can think critically and who can solve problems. The study investigates the impact of student's financial aid to higher education enrolment. The focus is on the national financial aid scheme, which is directed towards the disadvantaged students enrolling in higher education. The main aim of the student financial aid is to increase the enrolment in higher education and to bring about equity in higher education. The study uses data from National student financial aid scheme (NSFAS) to determine its impact on higher education enrolment. The study employs the bounds testing cointegration approach. The motivation to adopt this methodology was based on the fact that the data used in this study is finite. These results reveal a long run relationship between student enrolment at higher education and student financial aid.