However, in the absence of a government committed to equity in education, it relied on capital injections from foreign donors for its survival. This relationship was formalised in 1996 when the Minister of Education, Professor Bengu, gave the organisation the responsibility of managing the government's National Student Financial Aid Scheme. It is therefore well placed to meet specific donors' requirements for the application of their funds to match donors with their recipients. Academically able, who are identified as financially needy in accordance with a standard means test, are targeted. All recovered funds go into a revolving loan pool so that future generations of students can benefit.
Legislation makes statutory provision for the recovery of funds from students.
Loans are income contingent, which ensures that repayments do not place excessive burdens on loanees.