Tuition fees make up 36% of higher education institutions' revenue: Stats SA
For every R100 of revenue generated or received by higher institutions in 2021, R36 was from tuition fees, Stats SA said on Friday.
Stats SA said the Covid-19 pandemic in 2020 and 2021 disrupted the operations of higher education institutions, with notable effects on revenue streams.
“After declining in 2020, the amount of money collected from tuition fees jumped by 21.6% in 2021.” it said.
The country’s 26 higher education institutions depend on three main sources of revenue, according to its financial statistics of higher education institutions statistical release.
Stats SA said the Mangosuthu University of Technology, based in Durban, depended the most on tuition fees.
“For every R100 of revenue generated or received by the institution in 2021, R56 was in the form of student fees. Durban University of Technology received half of its income from tuition fees in the same year.”
At the other end of the scale, tuition fees accounted for 16% of total revenue received or generated by Central University of Technology in Free State. It said this institution relied heavily on government financing in 2021, receiving 76% of its revenue in the form of grants.
“If we consider all higher education institutions, the percentage of total revenue from tuition fees shifted from 33% in 2019 (before the pandemic) to 36% in 2021. As the lockdown disrupted operations in 2020, government transfers increased while the amount received from tuition fees declined.
“As institutions began reopening their doors of learning in 2021, the situation reversed. Government grants declined while the amount collected from tuition fees climbed significantly. This resulted in tuition fees taking up more of the revenue pie in 2021.”
Stats SA said in rand values, tuition fees accounted for R29.3bn of total revenue in 2019, declining to R28.8bn in 2020 and jumping to R35.1bn in 2021.
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