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A STUDY ON PRO-POOR TARGETING OF STUDENTS AND SCHOLARSHIP DISTRIBUTION UNDER SHEP

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REPORT OF

A STUDY ON PRO-POOR TARGETING OF STUDENTSAND

SCHOLARSHIP DISTRIBUTIONUNDER SECOND HIGHER EDUCATION PROJECT

For

Student Financial Assistance Fund Development Board (SFAFDB)

Second Higher Education Project (SHEP)

Student Financial Assistance Scheme (SFAS)

Jhamsikhel, Lalitpur, Nepal

By

Rudra Prasad Gautam, Ph. D.Professor

Central Department of Economics,Tribhuvan University, Kirtipur, Nepal

April, 2014


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Executive Summary

ducation is considered an important engine for the empowerment of the people onthe one and socio-economic development of the nation on the other. Along with the

introduction of multiparty democracy in 1990, constitutional and legal provisions putdown greater room for equal opportunities recognizing right to education to all citizensirrespective of gender, caste, ethnicity, religion, economic status and geography.

The proportion of population (6 years and above) never attended school in differentconsumption quintiles ranges from 44.2 percent (poorest quintile) to 21.3 percent in therichest quintile. Share of female in this category seems high compared with the malesand the gap decrease for the higher consumption quintiles. Among those currentlyattending educational institutions 72 percent enrolled at government/communityschools.

Looking at the poor scenario in education sector especially in poorcommunities/families Student Financial Assistance Scheme (SFAS) was initiated andmanaged by the Student Financial Assistance Fund Development Board (SFAFDB)since March 06, 2006 as a second component of the Second Higher Education Project(SHEP). The board is an autonomous body governed by nine members representingdifferent sectors and is headed by the Chairperson of University Grant Commission(UGC). It is a pioneering step to support the poor and meritious students who cannotcontinue their study without outside financial support.

Due to its limited sources the board could not fulfill the needs of all aspirants even formthe targeted class. Thus board has developed and followed PMT based selectionprocess that has to pass from different stages such as - Information dissemination,application form distribution and collection, preliminary list generation, fieldverification, result checking, final list publication, bank account opening, essentialdocument collection, and financial assistance disbursement which takes almost halfyears time.

To know the present status of the scheme and perception of the actual beneficiaries astudy was carried out based on both the primary and secondary information. Theprimary information was collected from the students studying in different regions of thecountry where secondary information was available form the board itself.

The SFAS has now completed seven years of establishment. During this period it hassupported 14583 (7391 for HSS and 7192 for HE) exceeding the target of 7800 in fivebatch starting from 2008/09. The number of aspirant for the scholarship is very highfrom the beginning and increasing remarkably over the years as its publicity gainmomentum all over the country irrespective of place of residence, caste, class, gender.

It is coincidence that in the valid sample, proportion of male and female is exactlyequal. Ninety three percent are from VDCs and 7 percent from municipalities. In the

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ecological regions hill covered highest proportion (64%) where CDR stood in topposition (36.4%) among the development regions.

The information reveals that poverty is not concentrated in particular caste but extendedin all caste and regions. Almost all students at present are fully concentrating on studythough the opinion gained from survey and group discussion varies remarkably.Domination of students from VDCs is observed in all the faculties where sciencefaculty reported more showing increasing interest in science education.

Proximity of school/college, low and affordable tuition fee, quality education andaccompanying with friends and relatives are the major reasons to choose theeducational institution where they are studying currently.

Among the different medium of information dissemination as well as availability thePMT form adopted by the board regarding the scholarship, school administration andteachers found most popular and effective followed by print and electronic media. Asthe students know the scheme is directed to pro-poor, some of the students tried to fillup false information to get selected bypassing verification process.

The institution has printed application form as necessary each year but in practice itwas learnt that some interested students were compelled to have to copy it themselvesas it was not sufficient while 16 percent students said that some of their interestedcolleague deprived to fill up the form only due to unavailability of it showing need torethink on its distribution mechanism.

Again school was found major source to inform the final result of the selectedbeneficiaries. Role of friends is also important in this regard. There is a contradictoryopinion of the beneficiaries who have participated in the survey process and groupdiscussion. However, among the surveyed students studying in different parts of thecountry 70 percent shown their inability to carry on their study further without anyoutside support though the proportion ranges from one place to another and differentregions. Meantime, almost all insisted that the FA is insufficient to maintain theireducational expenses as it is increasing every year. However, courage of both theparents/guardians and the student itself has increased due to scholarship and intendedfor to get quality education as much as possible.

It is also known that either administration or teachers of the affiliated academicinstitution where students get enrolled after getting FA found not aware about thescheme on the one and on the other they also not known the students receivingscholarship that makes duplication in the scholarship program of different institutionand makes monitoring and supervision process complicated.

While talking about the selection process 81 percent perceived it as free and fair so thatactual deserving student were selected. The major cause of dissatisfaction may be dueto being not well-known with the process of PMT score and ranking. Sixteen percentbeneficiaries have reported that, few not selected contestants were economically weak


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than the selected one which also confirmed from the beneficiaries attended in groupdiscussion. But it may because of the blank field in the PMT application form they hadsubmitted or any other weakness.

Sixty two percent have preferred present need based approach. But more than one-thirdstood in favor of both merit and need based approach as need based approach maysidelines the meritorious student having slightly better off position in the selectedvariables but highly bright than the selected one. They further make clear, if we cannotrecognize their talent the country will lose quality manpower depriving receivingeducation only because of economic cause. However, in practice no student knows howhe/she was selected for scholarship as they found unaware about the selectionprocedures and score of the values of the indicators filled by them.

Continuation of the financial assistance scheme with expanding the present coverageand amount, timely disbursement of scholarship amount, easy availability ofapplication forms in all concerned institutions, need of an effective supervision andmonitoring system, arrangement of part time job, provision of soft education loanfacilities, effective and efficient information dissemination system are the majorsuggestions by the beneficiaries for further improvement of the scheme.

SFAS is being established as the less challenged model to select poorer and providefinancial assistance to needy students. For sustainability of SFAS, SFAFDB hasorganized a Fund and formed a Sub-Committee with the aim to increase SFA fund inorder to sustain SFAS, and to grasp corporate social responsibility.

Provision of adequate and suitable human resources as well as necessary physicalfacilities, application of one door policy by the state to distribute all the scholarshiprelated to education to avoid duplication caused by lack of coordination among theconcerned institutions, information dissemination system should be strengthen widely,develop a system of filling PMT form compulsorily in all schools with the studentsappeared for SLC and class 12 examinations along with the examination form on aregular basis, include NCell and other systems too for effective dissemination ofinformation besides NTC network, include concerned educational institutions onverification, monitoring and supervision process, improve on the fund disbursementmechanism and increase the scholarship amount based on the increase in educationexpenses are the major recommendations based on the information available from theSFAFDB office and field.

It is hard to evaluate the program based on such small sample and informationgeneration procedure. Thus a detail evaluation study covering all the ecological zonesand development regions supporting from secondary information is needed to find outthe actual status of the program.


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ABBREVIATIONSACF Award Confirmation Form

CBS Central Bureau of Statistics

CCI Chamber of Commerce and Industries

CDR Central Development Region

CTEVTCouncil for Technical Education and VocationalTraining

DEO District Education Office

DOE Department of Education

EDR Eastern Development Region

EJG Education Journalists Group

EVENT Enhanced Vocational Education and Training Project

EZON Education Journalists Network

FA Financial Assistance

FNCCIFedration of Nepalese Chambers of Commerce andIndustry

FWDR Fast-Western Development Region

GON Government of Nepal

HE Higher Education

HERP Higher Education Reform Project

HH Households

HSEB Higher Secondary Education Board

HT Head Teacher

IDA International Development Association

IVR Interactive Voice Response

MDG Millennium Development Goals

MOE Ministry of Education

MOU Memorandum of Understanding


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MWDR Mid-Western Development Region

NBL Nepal Bank Ltd.

NCell Nepal Cell

NTC Nepal Telecom

OAG Office of the Auditor General

OCE Office of the SLC Controller Examination

PAD Project Appraisal Document

PMT Proxy Means Testing

RBBL Rastriya Banijya Bank Limited

RC Resource Center

SFAF Student Financial Assistance Fund

SFAFDB Student Financial Assistance Fund Development Board

SFAS Student Financial Assistance Scheme

SHEP Second Higher Education Project

SLC School Leaving Certificate

SMC School Management Committee

SMS Short Message Service

SPSS Statistical Package for the Social Sciences

SSS Single Source Selection

SWOT Strength Weakness Opportunity Threats

VDC Village Development Committee

UGC University Grants Commission

WB The World Bank

WDR Western Development Region

WSP Work Study Provision


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TABLE OF CONTENTSPage

EXECUTIVE SUMMARY 2

ABBREVIATIONS 5

TABLE OF CONTENTS 7

LIST OF TABLES 8

CHAPTER-IBACKGROUND OF THE SCHEME

1.1 Scenario of Education in Nepal 10

1.2 Initiation of the Scheme 11

1.3 Objectives 12

1.4 Implementation Arrangement 12

1.5 Methodology 13

CHAPTER-IIPERCEPTION OF THE BENEFICIARIES ON STUDENT FINANCIALASSISTANCE SCHEME

2.1 Characteristics of Beneficiaries 15

2.2 Current Level of Education 16

2.3 Level of Awareness and Information Dissemination 18

CHAPTER-IIISUMMARY AND RECOMMENDATIONS

3. 1 Summary 30

3.2. Recommendations 32

REFRENCES 35

ANNEXESAnnex 1: Annual PMT Calendar of Student Finance Assistance Fund

Development Board (SFAFDB)37

Annex 2: PMT Indicators and their Variable Options 38Annex 3: SFAS Beneficiaries Students Re-selected for Upper Grade 39Annex 4: Distribution of Students and Poverty by Districts 40Annex 5: SFAFDB Grouping of 102 Ethnicity/Caste (only for internal data

analysis purpose)44

Annex 6: Checklist used by the Individual Consultant for Field Monitoring 46Annex 7: Questionnaire Used in the Study 47Annex 8: Specimen Copy of Student Bond (KABULIYATNAMA) 53Annex 9: Specimen Copy of PMT Application Form 54Annex 10: Form Used by SFAFDB for Field Based Beneficiary Monitoring 56Annex 11: SFAS Background, its Implementation Progress 58Annex 12: Assessment (SWOT Analysis) of SFAS in Nepal 79Annex 13: TOR of the Individual Consultant 86


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List of Tables

PageTable 1: Literacy Status in Nepal, 2011

Table 2: Current Enrolment Status of Students at Community/GovernmentSchool/College

10

Table 3: Number of Contacted Beneficiaries by Geographical Location andPlace of Residence

11

Table 4: Beneficiaries by Sex, Place of Residence, Ecological Zones, andDevelopment Regions

13

Table 5: Beneficiaries by Ethnicity/Caste and Region 15

Table 6: Students in various Level and Faculty by Place of Residence 16

Table 7: Reasons to Choose the Current Educational Institution by Gender 17

Table 8: Medium to Disseminate Knowledge about Scholarship by Regions 17

Table 9: Sources for availability of Proxy Means Testing (PMT) Form byRegion

19

Table 10: Knowledge regarding the Number of Aspirants for theScholarship

20

Table 11: Medium to Know the Final Selection for the Scholarship byRegion

21

Table 12: Knowledge of Verification 22Table 13: Capacities of the Beneficiaries to Continue their Study without

Scholarship23

Table 14: Inabilities to Continue the Study by other Members in the Familyin Absence of Scholarship

24

Table 15: Scale of Help by the Scholarship to Manage the Cost ofEducation in the Family

25

Table 16: Fairness in the Selection of Students 25Table 17: Knowledge on Other Students not selected for Scholarship being

financially weak in their Comparison by Region26

Table 18: Preferred Basis for Selecting Student for Scholarship by Region 27

Table 19 : Literacy Statuses in Nepal, 2011 58Table 20 : Current Enrollment Stauts of Students at

Community/Government School/College59

Table 21 : Status of Application Form Distributuion and Collection byCohort

62

Table 22 : Quintile Distribution 62Table 23 : Share of Applicats and their SLC Result by Consumption

Quintile63

Tabel 24 : Expected Beneficiarys and Progess for the Academic Year 64Table 25 : Share of Beneficiaries of Fifth Cohort by their Area of 65


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SpecializationTable 26 : Delisting of the Students on the basis of HH Verification 66Table 27: Share of total applicant Students during Last Five Years 70Table 28: Proportion of Students at HSL and HL 71

Table 29: Proportion of Students by Level, Gender and Cohort (in %) 71

Table 30: Share of Students in Top 10 Districts in Relation to PovertyLevel

72

Table 31: Students by VDC and Municipality 72

Table 32: Students by Development Region and Rural Urban Residence 74

Table 33: Students by Development Region, Rural Urban Residence andSex

74

Table 34: Students by Ecological Zone and Rural-Urban Residence 75

Table 35: Students by Ecological Zone and Rural-Urban Residence 75

Table 36: Proportions of Students by Caste/Ethnicity 76

Table 37: Candidates by Cohort and Level of Consumption Quintile 77


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CHAPTER - IBACKGROUND OF THE SCHEME

1.1 Scenario of Education in Nepalducation is considered an important engine for the empowerment of the peopleon the one and socio-economic development of the nation on the other. Alongwith the introduction of multiparty democracy in 1990, constitutional and legal

provisions put down greater room for equal opportunities recognizing right to educationto all citizens irrespective of gender, caste, ethnicity, religion, economic status andgeography.It is further imperative in the present context of inclusiveness in every sector of thesocio-economic field. Today it has been accepted as fundamental right of the citizen.However, education level of Nepalese people is still poor though the rate of literacyseems inspiring1 and increasing gradually as the government adopted a global program'education for all' guided by the Millennium Development Goals (MDGs) andassurance of Nepal. On the previous achievement and current national situation it isvery hard to achieve the goal within coming two years. The literacy as well as level ofeducation is further worsening in poor and backward communities and familiesespecially due to lack of awareness of the parents and their affordability. The disparityin enrolment between richest and poorest quintiles at higher secondary and tertiarylevel helps to confirm the situation.Table 1: Literacy Status in Nepal, 2011

Area LiteratePassed SLCand above

Nepal 65.9 10.5

Urban 82.2 23.1

Rural 62.5 6.9

Mountain 60.5 5.8

Hill 72.3 12.6

Terai 61.2 8.9

CBS, National Population Census Report, 2012.

The proportion of population (6 years and above) that never attended school amongconsumption quintiles ranges from 44.2 percent in the poorest quintile to 21.3 percentin the richest quintile. Share of female in this category seems high compared with themales and the gap decrease for the higher consumption quintiles. For instance, femalepopulation that never attended school is 53 percent in the poorest quintile (male,32.9%) while the corresponding proportion for the richest quintile is 31 percent (male,9.9%) (CBS, 2011).

1 According to the population census 2011 about 66 percent Nepalese at and above five years are foundliterate.

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Among the family members aged 6-24 years of age who never attended any educationalinstitution reported various causes. Among the causes parents did not want to sendthem mainly being unable to invest on education is major one (30%) followed by theyhad to help at home to support their family (25.5 %), not willing to attend (17.2%), theeducation is too expensive (7.3%). Besides them too young, disability and school farway are the other reasons for not attending school (CBS, 2011).

By gender groups, not willing to attend, parent did not want, too young and help athome are the most reported reason for males while parent did not want, help at homeand not willing to attend are the dominant reason for females. On the other, largenumber of students has dropped their study before completing desired level. Amongthem 25 percent leave due to their poor academic progress while 22 percent reportedhelp needed at home as the primary reason for leaving school, 17 percent leave schoolbecause of marriage. Other reasons are parent did not want (7%) and too expensive(7%) (CBS, 2011).

Overall, 72 percent of currently school/college enrolled students attendedgovernment/community schools. Urban areas have remarkably less (42.9%) students insuch institutions than rural areas (79.1%). About 93 percent of the students from thepoorest quintile are currently attending government/community schools while theproportion declines as the income level increases. The proportion of enrollment atgovernment/community schools also differs by development regions and ecologicalzones (CBS, 2011).


Area andConsumption

Quintile

Enrolment atCommunity/Government

School/College (in %)Nepal 71.9Urban 42.9Rural 79.1

ConsumptionQuintilePoorest 92.7Second 86.5Third 79.1Fourth 64.3Richest 39.0

Source: CBS, Nepal Living Standard Survey, 2010-11.

1.2 Initiation of the SchemeLooking at the poor scenario in education sector especially in poorcommunities/families Student Financial Assistance Scheme (SFAS) was initiated. As asecond component of the Second Higher Education Project (SHEP) SFAS has beenmanaged by the an autonomous body established under the Bikash Samiti Ain, 2013(3)


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in march 06, 2006; it is governed by nine members representing different sectorsheaded by the Ex-Officio Chairperson of University Grant Commission (UGC). TheExecutive Director of SFAFDB is the member-secretary in Board. It is a pioneeringstep to support the poor and brilliant students who cannot continue their study withoutoutside financial support.

1.3 ObjectivesThe overall objective of the scheme was to ensure access of poor or low income groupstudents to higher secondary and higher education on the basis of Proxy Means Testing(PMT) score. The specific objectives are to:

i. Establish a pro-poor targeting method for scholarship distribution, andii. Ensure that students from disadvantaged groups had an opportunity to obtain

higher education through financial assistance provided by the project.

1.4 Implementation ArrangementIn the starting phase (cohort) this program was implemented in 24 Districts of FarWestern and Mid Western Development Regions. In the beginning the Board hadperformed the activities itself. From the second cohort the SFAFDB made a contractwith Rastriya Banijya Bank Limited (RBBL)2 as a fund-administrator which is selectedon a national competitive bidding. The bank also sub-contracted some of its activitieswith the firms (RIDA and DEVTEC Nepal Pvt. Ltd.). Some constraints wereexperienced on its execution under the arrangement. To overcome the constraintsexperienced and to implement the scheme more effectively, the contract was changedon the basis of agreed restructuring model between Government of Nepal (GON) andWorld Bank (WB). In the new arrangement the role of the fund administrator (RBBL)was limited only on appeal collection, fund channeling, partial monitoring andreporting, the fund administrator bank terminated the contracts with the two sub-contractors.In the third cohort SFAFDB has contracted a firm (DEVTEC Nepal Pvt. Ltd.) on SSSto carryout poverty assessment of PMT applicants including PMT form distribution,collection, scoring, SLC and HSEB result verification, prepare preliminary list,verification of the applicant self-assessed forms on a sample basis, comparison ofscores, prepare final list of beneficiaries, trimester basis academic progress monitoringof first and second cohort beneficiaries and reporting to the board.

As the strength and experience of the board increases the existing contract with bothRBBL and DEVTEC has limited and the contract period was expired on 20 November,2011. Since this period (from fourth cohort) all SFAS activities are being managed bythe board itself in coordination with Department of Education (DOE), DistrictEducation Offices (DEOs), Office of the Controller of Examination (OCE) known bySLC Board and Higher Secondary Education Board (HSEB). Only the task ofindividual SFAS bank account opening of the final list students, appeal collection,document collection, and Financial Assistance (FA) disbursement to the individualaccounts of the beneficiaries is assigned to the RBBL. SFAFDB hired short term fieldpersonnel and data entry personnel on daily wage basis; individual consultants werealso contracted to perform the specific task as and when needed.

2 A bank owned by Nepal government.


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The SFAFDB has developed a scientific selection procedure. The selection process ofthe students in this scheme has to pass from different stages such as - Informationdissemination, application form distribution and collection, scoring/welfare ranking andpreliminary list generation, result checking, HH verification, re-scoring of HH verified(to compare PMT score before and after verification then to delist if needy), final listgeneration and disclosure, bank account opening, essential document collection, andFA disbursement are the major activities under the scheme. It takes almost six months.3

1.5 MethodologyThis study is based on both the primary and secondary information. The primaryinformation was collected from the beneficiary students and other stakeholders.As per the agreed TOR the SFAFDB itself has selected 800 students (400 from +2 and400 from bachelor level) using systematic sampling method from the total beneficiariesof the program. Among the selected beneficiaries 465 students were directly contractedboth from higher secondary and bachelor level either meeting physically and by phone.They were interviewed with the help of a structured questionnaire. Among the filledforms 418 were valid (filled almost complete information) representing equal number(209) of male and female. The distribution of valid sample from different regions andplace of residence is presented in table 3.

Table 3: Number of Contacted Beneficiaries by Geographical Location and Placeof Residence

LocationNumber of Sample

BeneficiariesPlace of Residence

VDC 387

Municipality 31

Ecological Zones

Mountain 49

Hill 269

Terai 100

Development Regions

EDR 113

CDR 152

WDR 58

3 See Annex: I Annual Calendar of Student Finance Assistance Scheme.


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MWDR 30

FWDR 63

The forms available were entered in Microsoft Access 2010 and exported into SPSSand Excel to analyze the output. The information obtained from it is analyzeddescriptively and presented in Chapter-III. Besides that, the researcher have discussedwith the beneficiaries in a group with the help of a checklist to find in-depth theirperception on this program. Likewise, frequent discussions were made with SFAFDBExecutive Director and other officials including Fund Administrators/RBBL Officials.Efforts were also made to know the opinion of the students studying in differentinstitutions at bachelor level.

Secondary information were reviewed and analyzed as much as needed. These data andinformation were obtained from SFAFDB office and its website. The major documentsused are: List of the beneficiaries by batch/cohort, Brochure, policy document, researchreports and progress reports of SFAFDB, independent monitoring report of the schemeconducted by Education Journalist Network, Nepal (EJON) and EJG (EducationJournalists Group), including Independent Monitoring Reports of SFAFDB consultants.The analysis based on secondary information is presented in Annexes 3, 4 and 11.


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CHAPTER - IIPERCEPTION OF THE BENEFICIARIES ON STUDENT FINANCIAL

ASSISTANCE SCHEME

2.1 Characteristics of BeneficiariesTo know the perception of the beneficiaries regarding the SFAS a small sample surveywas conducted covering the students 4 from different regions of the country. Theircharacteristics and perception is presented in this section with the view to improve thefuture activities learning from the past.It is coincidence that in the valid sample proportion of male and female is exactlyequal. Ninety three percent are from VDCs and 7 percent from municipalities. In theecological regions hill covered highest proportion (64%) where CDR stood in topposition (36.4%) among the development regions (Table 4).

Table 4: Beneficiaries by Sex, Place of Residence, Ecological Zones, andDevelopment Regions

Number Percent

Sex

Male 209 50

Female 209 50

Place of Residence

VDC 387 92.6

Municipality 31 7.4

Ecological Zones

Mountain 49 11.7

Hill 269 64.4

Terai 100 23.9

Development Regions

EDR 114 27.3

CDR 152 36.4

WDR 59 14.1

MWDR 30 7.2

4 Out of 446 forms available from the sample students 28 were invalid lacking necessaryinformation.


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FWDR 63 15.1

Total 418 100.0

Though the scholarship amount is distributed to the real poor based on the PMT score.Students from various caste/ethnic groups are selected reflecting poverty is notconcentrated in particular caste but extended in all caste and regions. Generally, weperceived that lower caste are more vulnerable to poor but this survey depicts thatamong the beneficiaries covered by the study 55 percent are from upper caste followedby Janajati and lower caste. The domination of upper caste is revealed in all the regionsand place of residence (Table 5). This may occur mainly due to: they are really poor,sample biased; the real poor from lower caste did not participate in the selectionprocess as they were not able to reach up to 10 and 12 grades, real poor deprived frominformation dissemination, and not interested to participate.

Table 5: Beneficiaries by Ethnicity/Caste and Region

RegionSo Called

Upper CasteDisadvantaged

JanajatiSo Called Lower

Caste OthersEcological Zone

Mountain 75.5 14.3 10.2 0.0

Hill 53.9 39.4 6.3 0.4

Tearai 48.5 27.3 12.1 12.1

Development Region

EDR 46.5 39.5 7.0 7.9

CDR 49.3 41.4 5.9 3.3

WDR 54.2 32.2 11.9 1.7

MWDR 73.3 26.7 0.0 0.0

FWDR 76.2 7.9 15.9 0.0

Place of Residence

VDC 55.0 34.1 7.5 3.4

Municipality 54.8 25.8 16.1 3.2

Total 55.0 33.5 8.1 3.3

2.2 Current Level of EducationOut of the 418 students covered by the survey, 416 are currently fully concentrating onstudy. One from western hill is not doing anything where another one from eastern


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Terai is seeking job. The information obtained from the group discussion in urbanareas5 is quite different. According to them, one-third students were involved in paidjob beside study to generate additional income to support their study. Recall lapses isfound one of the major factor available among the beneficiaries as 36 percent could notrecall the year of enrollment in educational institution where they are currentlystudying. Fifty four percent reported 2069 BS (2012 AD) and 2068 BS (2011) by 8percent. Student from VDC are more among the recall lapse. It also differs one regionto another.Beneficiaries from VDC in higher secondary education stood 85 percent where inbachelor level it was 81 percent. Likewise, domination of students from VDCs isobserved in all the faculties where science faculty reported more showing increasinginterest in science education. But it is known that the domination of students intechnical education from VDC was only because of few or nil sample frommunicipalities. Some of the beneficiaries (3.3%) did not report the faculty where theyare reading which is their next weak point.

Table 6: Students in various Level and Faculty by Place of Residence

Faculty VDCMunicipali

tyScience 100.0 0.0

Management 89.8 10.2

Education 91.8 8.2

Humanities 93.1 6.9

Others 100.0 0.0

Total 92.6 7.4

More than 98 percent beneficiaries were continuously studying before they haveselected for scholarship. Proximity of school/college, low and affordable tuition fee,quality education and accompanying with friends and relatives are the major reasons tochoose the educational institution where they are studying currently. All these reasonsare important both for male and female students though the level of importance varieseach other. A significant number of students did not disclose the level of importanceamong various reasons. In this group females are less in comparison to male (Table 7).

Table 7: Reasons to Choose the Current Educational Institution by Gender

Reasons & SexNot at allimportant

Moderate Important

Veryimporta

nt

Mostimportant

NotRespo

nseMale

5 Interaction with the students studying at the educational institutions in urban centers comingfrom rural areas with the hope of quality education which is not possible in their residential areas.


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School/collegenearby

15.3 14.8 16.7 17.7 15.8 19.6

Low Tuition fee 4.3 11.0 18.7 23.9 20.1 22.0

Qualityeducation

3.8 8.6 25.8 25.8 12.4 23.4

Friends/relatives studying

6.2 8.1 18.7 29.2 14.8 23.0

Female

School/collegenearby

20.1 18.7 15.3 16.7 18.2 11.0

Low Tuition fee 8.1 12.0 26.8 16.7 21.1 15.3

Qualityeducation

2.9 17.2 25.8 21.1 16.7 16.3

Friends/relatives studying

13.4 7.7 22.5 26.8 13.4 16.3

2.3 Level of Awareness and Information DisseminationAs getting information is vital for scholarship and disseminating the same is crucial toensure that the neediest are not left behind. Student Financial Assistance Scheme hascirculated its notice related to the scholarship through different ways, such as print andelectronic media, through District Education Office, government as well as communityschools and other possible medium with the aim to disembark the massage up to theneedy poor focusing rural and remote areas. Among them most popular and effectivemedium found school administration and teachers from where all the students getinformation at a time through general notice when they were attending regular classesin 10 and 12 grade. The DEOs circulated the notice to each concerned schools. Theprogram has lunched within an annual calendar valid for all years. Thus concernedstakeholders can disseminate the information in advance too as they know the calendarthat provides enough time to mind set up to the student. In addition to this, print andelectronic media was found effective in all the regions and places to circulate the call ofapplication for scholarship openly from eligible candidate. Among these sources radioprogram 'Kayakairan' was advocated by the students during group discussion. Wecannot minimize the role of friends to communicate the massage up to needy co-students and others to whom they know (Table 8).


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Table 8: Medium to Disseminate Knowledge about Scholarship by Regions

RegionRadio/TV/Newspaper

SchoolAdministration

and Teacher Friends

Others(internet/SMC/Othe

rs)Ecological Zone

Mountain 6.1 83.7 8.2 2.0

Hill 19.3 71.0 7.1 2.6

Terai 16.0 75.0 6.0 3.0

Development Region

EDR 32.5 57.0 6.1 4.4

CDR 12.5 78.3 7.2 2.0

WDR 8.5 84.7 6.8 0.0

MWDR 20.0 73.3 6.7 0.0

FWDR 6.3 81.0 7.9 4.8

Place of Residence

VDC 17.1 73.6 6.7 2.6

Municipality

16.1 71.0 9.7 3.2

Total 17.0 73.4 6.9 2.6

More than 91 percent students have got PMT form to apply for scholarship from theirown school administration. It ranges from 85.5 percent in Central Development Regionto 93.7 percent in Far Western Development Region showing more variation among theregions. School administration and teachers not only informed about the scholarshipand provided PMT form, they also offer necessary help to fill up, submit and send theform in time to the concerned institution though few students blame them doingpartiality among the students. Next to the school and teachers, concerned DistrictEducation Office has provided the forms to the students as per their demand. As thestudents know the scheme is directed to pro-poor, some of the students tried to fill upfalse information with the hope to select for it. Such misconduct may reduce reputationof SFAFDB if such students bypass from verification process.


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Table 9: Sources for availability of Proxy Means Testing (PMT) Form by RegionSchool DEO Others

Ecological Zone

Mountain 89.8 6.1 4.1

Hill 90.7 7.4 1.9

Terai 93.0 4.0 3.0

Development Region

EDR 92.2 6.1 0.9

CDR 85.5 5.7 4.4

WDR 89.8 10.2 0.0

MWDR 90.0 3.3 6.7

FWDR 93.7 6.3 0.0

Place of Residence

VDC 91.0 6.5 2.6

Municipality 93.5 6.5 0.0

Total 91.1 6.5 2.4

As we know that 80,000 PMT forms were published annually from the second cohortand 130,000 in the fifth cohort where number of aspirants found less than the numberof forms printed. But it was learnt that some interested were compelled to have to copyit themselves as it was not sufficient as per the demand of the student. In this situationthe concerned authority of the board has to introduce re-distribution policy knowing thestatus of forms in the concerned DEOs or schools. The fault in the form distribution isalso proved from the opinion of the 16 percent students as some of their interestedcolleague deprived to fill up the form only due to unavailability of it.

More than two-fifths beneficiaries are not aware about the total number of aspirantswho filled the PMT form from their school. Those who recall the number of contestantstated less than 20 to whole students of their class. One-fourth opined that less than 20students in their batch have filled the PMT form. About two percent beneficiariesreported that up to 200 students from their school have applied for SFAFDB'sscholarship which is too high from single school. The students participated in the groupdiscussion also informed that on an average less than one-fourth were selected fromtheir school in total aspirants. On the other this information also point out that thescheme is drawing attraction of the students as the level of awareness increases.


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Table 10: Knowledge regarding the Number of Aspirants for the ScholarshipEstimated Number Percent

<20 25.4

20-40 13.6

41-60 9.8

61-80 3.3

81-100 1.9

101-200 1.9

Whole students ofthe class 1.7

Do not know 16.0

No Answer 26.3

Total 100.0

Like the knowledge on availability of PMT form the aspirant can search out the finallist student from different medium such as - print (Gorkhapatra and Kantipur daily) andelectronic media (website of SFAFDB, Kayakairan radio program, SMS from NTCmobile), school administration and school teachers, friends and others. Among themschool was the major one informing more than 62 percent students – 45 percent inmunicipality area to 82 percent in mountain where task of print and electronic media isvery low. Role of friends to inform the final result is also important in this regard.

Table 11: Medium to Know the Final Selection for the Scholarship by Region

Belt /Region

Radio/TV/Newspaper

SchoolAdministration and

Teacher Friends OthersEcological Zone

Mountain 8.2 81.6 4.1 6.1

Hill 25.7 58.4 7.8 8.2

Tearai 22.0 63.0 11.0 4.0

Development Region

EDR 36.0 51.8 5.3 7.0


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CDR 17.8 61.8 11.2 9.2

WDR 18.6 67.8 6.8 6.8

MWDR 26.7 53.3 16.7 3.3

FWDR 12.7 81.0 3.2 3.2

Place of Residence

VDC 22.2 63.6 7.8 6.5

Municipality

29.0 45.2 12.9 12.9

Total 22.7 62.2 8.1 6.9

Verification of the PMT form is one of the major activities of SFAFDB to know theauthenticity of the form after preparing a list of probable beneficiaries based on thePMT score. This process was being done on a sample basis but demanded by sub-corner to cover all areas and students from the process as some cases are came in thesurface that better off also selected for the scheme against the objective of the programonly due to the misreporting by the students. Out of the sampled beneficiaries 30percent know the verification and the rest did not. Contrary to this, beneficiariesparticipated in the group discussion either in Pokhara or Kathmandu as well asinterviewed by phone did not have any experience or knowledge regarding verificationprocess. It may be true because verification process was conducted without informingthe students or their families while the response from the interviewed beneficiaries isquestionable. All aspirants know only the provision of verification process.

Table 12: Knowledge of VerificationResponse Percent

Yes 29.9

No 69.4

Do not know 0.7

Total 100.0

There is a contradictory opinion of the beneficiaries who have participated in thesurvey process and group discussion. Among the surveyed students studying indifferent parts of the country only 30 percent are found able to continue their studyeven if they did not selected for scholarship where 70 percent shown their inability tocarry on further without any outside support. They have enrolled only as they haveselected for scholarship. A separate study by Education Journalists Group (EJG) also


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corroborates with this study. According to the study beneficiaries pleased to theconcerned institutions for providing FA to them and reported that they were not able tocontinue their study if not assisted. The proportion of ability and disability ranges fromone place to another and different regions (Table 14). Students from rural and mountainareas have shown more disability.

On the other all students in the group discussion strongly and unanimously said thatthey were in a mood to continue the study through generating income from any source(loan, sell of family property, seeking part time work, etc) even if not selected forscholarship. Currently, few beneficiaries found working to meet additional expenses tocontinue the study. They also informed that no single students admitted were in a moodto drop out only because of not getting scholarship. But their courage has increasedreceiving scholarship amount and their family also feels some relax regarding gettingquality education as much as possible. Meantime, almost all insisted that the FA isinsufficient to maintain their educational expenses as it is increasing every.

Table 13: Capacities of the Beneficiaries to Continue their Study withoutScholarship

Region Yes No

Place of Residence

VDC 29.5 70.5

Municipality 41.9 58.1

Ecological Zones

Mountain 16.3 83.7

Hill 28.3 71.7

Terai 43.0 57.0

Development Regions

EDR 42.1 57.9

CDR 28.9 71.1

WDR 18.6 81.4

MWDR 20.0 80.0

FWDR 28.6 71.4

Total 30.4 69.6

The researcher could not check the attendance register of the beneficiaries in theinstitutions visited as they did not maintain it properly. It is also known that either


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administration or teachers of the institution where the beneficiaries were studyingfound not aware about the scheme on the one and on the other they also not known thestudents receiving scholarship6. This hampers the task of monitoring and supervisionprocess effectively without informing to the beneficiaries.

Likewise, 45 percent beneficiaries reported that they became able to continue but theirother family members were deprived from educational opportunity as they could notreceive any support from outside and the family was not in a position to manage theexpenses. The proportion differs by place of residence and regions but normally theability is associated with the socio-economic condition of the area where they areliving.

Table 14: Inabilities to Continue the Study by other Members in the Family inAbsence of Scholarship

Region Yes NoPlace of Residence

VDC 45.5 54.5


Ecological Zone

Mountain 34.7 65.3

Hill 44.2 55.8

Terai 52.0 48.0

Total 45.0 55.0

Development Region

EDR 21.9 78.1

CDR 63.8 36.2

WDR 39.0 61.0

MWDR 43.3 56.7

FWDR 47.6 52.4

6 Teachers from the institution where the beneficiaries were studying said, the class performance andattendance of the students is good with few exceptions during the visit for group discussion when theysee the students. Past studies and monitoring reports also depicts that some of the beneficiaries neverattends school/college and away from the institution though admitted.


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Total 45.0 55.0

All the students perceived the scholarship amount is helpful to continue their studythough the degree of its role is not the same for all. Three-fifths feel its contributionextremely helpful though it covers not more than 15 percent of total expenses whilestudying in urban areas for quality education. But for the students who have access tostudy sitting at their home the amount found more helpful because hardly that coverstuition fee, stationary and one pair of dress. However, quality of education is poor andsubject that they are interested could not available.

Table 15: Scale of Help by the Scholarship to Manage the Cost of Education in theFamily

Scale of Scholarship PercentVery helpful 42.8Most helpful 33.7

Helpful 12.0

Somehow helpful 11.2

Not at all helpful 0.2

Total 100.0

Scholarship recipient students are really poor, stakeholders and the students themselveshave no complaint about it however, the selection of the students is centralized. Whiletalking about the selection process 81 percent (71% to 100% in different regions andplace of residence) perceived it as free and fair so that actual deserving student wereselected. Nineteen percent of them were not found satisfied with this process. Themajor cause of dissatisfaction may be due to being not well-known with the process ofPMT score and ranking, though it is scientific to reach up to the real poor based on theavailable document.

Table 16: Fairness in the Selection of Students

Region Yes NoPlace of Residence

VDC 79.3 20.7


Total 80.9 19.1

Ecological Zones

Mountain 85.7 14.3


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Hill 80.3 19.7

Terai 80.0 20.0

Total 80.9 19.1

DevelopmentRegions

EDR 91.2 8.8

CDR 71.1 28.9

WDR 72.9 27.1

MWDR 80.0 20.0

FWDR 93.7 6.3

Total 80.9 19.1

The dissatisfaction of the students is not directly related to the selection process but onthe limitation in overall procedure because they mentioned, the real poor did not fill upthe PMT form, not known about scholarship and poor educational performance asmajor point of dissatisfaction. Such thought demands improvement in the procedureminimizing loopholes.

It is very hard to know the exact economic situation of others. In this connection morethan 83 percent beneficiaries were found unknown about the aspirant's real economicposition. They perceived that all were very needy students but may deprive notbecause of the unfair selection process but due to limited quota of the scheme. Contraryto this, 16 percent have observed, not a single student who had received scholarshipwere economically sound but few not selected contestants were economically weakthan the selected one (Table 17). Some of the participants in the group also proved thestatement saying there were some lapses though roughly about one fourth applicantshave received the scholarship from their school. It is believed that the lapses were not inselection procedures but might occurred due to information dissemination limitation inverification process.

Table 17: Knowledge on Other Students not selected for Scholarship beingfinancially weak in their Comparison by Region

Region Yes No Others

Place of Residence

VDC 16.0 82.9 1.0

Municipality 12.9 87.1 0.0


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Total 15.8 83.3 0.9

Ecological Zones

Mountain 12.2 85.7 2.0

Hill 17.5 81.4 1.1

Terai 13.0 87.0 0.0

Total 15.8 83.3 0.9

Development Regions

EDR 8.8 91.2 0.0

CDR 23.7 75.0 1.3

WDR 13.6 84.7 1.7

MWDR 20.0 76.7 3.3

FWDR 9.5 90.5 0.0

Total 15.8 83.3 0.9

All the students either satisfied or not with the present selection process were asked toknow their preferred selection criteria. Sixty two percent have preferred present needbased approach. But more than one-third stood in favor of both merit and need basedapproach as need based approach may sidelines the brilliant student having slightlybetter off position in the selected variables but highly bright than the selected one. Theyfurther make clear, if we cannot recognize their talent the country will lose qualitymanpower depriving receiving education only because of economic cause. The needbased approach is mainly preferred by the students from VDC, hill as well as Terai andMWDR. On the other need and merit based approach is advocated more by the studentsfrom municipality, mountain and FWDR (Table 18).

Table 18: Preferred Basis for Selecting Student for Scholarship by RegionRegion Merit based Need based Both merit and need based NR

Place of Residence

VDC 2.1 63.6 32.3 2.1

Municipality 0.0 38.7 61.3 0.0

Ecological Zones

Mountain 2.0 46.9 42.9 8.2


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Hill 1.1 63.9 33.8 1.1

Terai 4.0 63.0 32.0 1.0

Development Regions

EDR 2.6 64.0 31.6 1.8

CDR 2.6 56.6 38.8 2.0

WDR 0.0 74.6 23.7 1.7

MWDR 0.0 83.3 10.0 6.7

FWDR 1.6 47.6 50.8 0.0

Total 1.9 61.7 34.4 1.9

In practice no student knows how he/she was selected for scholarship as they foundunaware about the selection procedures and score of the values of the indicators filledby them. But they guess based on their priory knowledge that the scholarship iscommence to secure access of poor and meritious students on higher education. Amongthem poor economic status, being poor and deserving student, poor economic situationfrom deprived ethnic group, meeting criteria set by the implementing institute are themajor opinion of the beneficiaries to be selected them in the scheme.

Beneficiaries have also suggested for further improvement of the scheme. The majorsuggestions in priority order are:

Each and every beneficiary stressed the need of continuation of the SFAS withexpanding the present coverage. This positive remark of the students aboutscholarship hints that it has helped them to continue their higher education. Italso needs to extend up to master level.

Amount of scholarship should be reviewed (updated) timely because educationexpenses have been increased considerably.

Information dissemination of the scheme to aware all the needy people must bestrengthened and PMT form should be offered to all aspirants without beingbiased. At the same time duration should be expanded for filling forms, itscollection and submission to the concerned institution.

As many selected students could not receive the installment in due time itshould be provided in time that helps them to manage their budget.

It should be given to the poor and meritorious students as a right to educationgiving priority on the basis of caste, region, and place of residence.

Sufficient number of PMT forms should be available at concerned institutionsso that aspirants need not run for XEROX copy of the form.

An effective supervision and monitoring system needs to develop to monitor theuse of the amount.


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If the government provides access on job market the poor students found readyto generate additional amount to continue the study without selling theirproperty and taking loan. They prefer arrangement of part time job besidesscholarship.

Soft education loan facilities should be given to poor and backward deservingstudent till they did not have the job.

Some role to select deserving student for scholarship should be given to schoolitself.

Copy of the final list of beneficiaries should be sent to schools/campus besidesthe website of SFAFDB and RBBL, SMS from Nepal Telecom network. Theyalso demand to include NCell network to find out the final selection.

Students faced difficulty to know the status of scholarship amount whetherdeposited or not in their personal account at concerned bank as the banker payless interest to the students under this scheme.


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CHAPTER-IIISUMMARY AND RECOMMENDATIONS

3.1 SummaryEducation is considered an important engine for the empowerment of the people andsocio-economic development of the nation. Considering the spirit of constitutional andlegal provisions after 1990, and assurance of Nepal on Millennium Development Goals(MDGs) today right to education has been accepted as fundamental right of the citizen.However, education level of Nepalese people is still poor though the rate of literacyseems inspiring. The literacy as well as level of education is further worsening infemale, poor and backward communities and families especially due to lack ofawareness of the parents and their affordability. Enrolment rate differs widely from onearea to another and by economic groups. Likewise, high disparity between rural andurban area and income groups are recorded in the choice of educational institutionbased on quality.To address the poor and others deprived from educational opportunity, Government ofNepal had started various scholarship programs focused on women, poor and backwardcommunities. Among them Student Financial Assistance Scheme (SFAS) is onemanaged by Student Financial Assistance Fund Development Board (SFAFDB), anautonomous body. The board has started pro-poor targeted scholarship program sincelast six years selecting financially poor intelligent students studying at HigherSecondary School and Bachelor level to make their access on education. The board hadestablished a rational web-based method to select poorer from the poor, known asProxy Means Testing (PMT) method having statistically significant and verifiableindicators.

Sustainability is one of the major challenges of any program run with long term goal. Ifwe can internalize SFAS after the termination of SHEP sustainability of the system willbe ensured. SFAFDB slowly and gradually is growing up as a specialized agency forPMT in Nepal. Sustainability of the board for the continuation of SFAS needs to bepreserved. Formation of stakeholder’s forum, organization of a separate fund,development of sub-committee to raise the fund assuring representation of industrialistsand social workers headed by a SFAFDB member as coordinator are some milestonesinitiated for the sustainability of the scheme. The sub-committee has sought donationfrom national and international donors and proposed ways to raise the fund as desiredlevel.

Analysis of information obtained from the beneficiary students revealed that poverty isnot a phenomenon particular to a caste but extend in all castes and regions. The opinionobtained from interview and group discussion varies slightly regarding the currentactivities. The share of students from VDC is more or less equal to the population sizein this area and they are distributed across all the faculties visibly. They have increasinginterest in science education.

More than 98 percent beneficiaries were continuously studying since prior to theirselection for scholarship. The level of importance given to various reasons cited for thechoice of educational institutions varies for different respondents. However, proximity


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of school/college, low and affordable tuition fee, quality education and accompanyingwith friends and relatives are the major reasons.

As getting information is vital for scholarship and disseminating the same is crucial toensure that the neediest are not left behind, among the different ways to disembark themassage up to the needy poor focusing rural and remote areas, school administrationand teachers were the most popular and effective medium from where all the studentsget information at a time. In addition to this, print and electronic media was foundeffective in all the regions and places. One cannot underestimate the role of friends tocommunicate the massage up to needy co-students and others to whom they know.

Similarly, in the institutions distributing PMT form as well as informationdissemination of final list beneficiaries, school administration found popular among thestudents being accessible as well as they also got necessary help to fill up, submit andsend the form in time though some students blame to the institution doing partialitybetween students in providing PMT form and assisting while filling the form. As perthe knowledge of the beneficiaries, less than 20 to whole students of the class havefilled PMT form but only a few have been selected in comparison to the number ofaspirants. The scheme has faced some criticism in the selection of beneficiaries due tosome lapses in practice mainly from the weaknesses in verification process. However,more than four-fifths beneficiaries were satisfied with the present selection processsaying that it was free and fair. The dissatisfaction of the students is also not directlyrelated to the selection process but on the limitation in overall procedure demanding itsimprovement.

A significant proportion of the beneficiaries were not able to carry on further withoutany outside support. They have enrolled only as they have selected for scholarship. Aseparate study by Education Journalists Group (EJG) also corroborates with this study.The proportion of ability and disability ranges from one place to another and differentregions. Some, who were in a mood to continue the study, appear to have gone onthrough generating income from other source (loan, sell of family property, seekingpart time work, etc) even if not selected for scholarship. Currently, few beneficiarieshave taken paid job to generate additional amount that helps to continue the study. Butthe receipt of FA has bolstered their courage and their family too feels somewhatrelaxed though their income was not sufficient to maintain the educational expenses.

Some concerned educational institutions where SFAFDB students are studying(administration or teachers) did not know the students receiving scholarship from theSFAFDB. This hampers the task of monitoring and supervision process. All thestudents perceived the scholarship amount was helpful to continue their study as itcovered the tuition fee, books and stationary while studying at urban places. Inaddition, it could also cover one pair of dress for the students studying at rural areas.

Present need based approach was preferred by majority beneficiaries while the voice infavor of a combined basis (merit and need) is also raised saying the need based


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approach may sidelines the brilliant student having slightly better off position in theselected variables but significantly brighter than the needy. If their talent is notrecognized the country will lose quality manpower, depriving them from receivingeducation only because of their just above poor economic status.

In practice no student knows how he/she was selected for scholarship as they werefound unaware about the selection procedures and score of the values of the indicatorsfilled by them. But they guessed based on their priory knowledge that the scholarshipscheme was to secure access of poor and meritorious students on higher education.

Need of continuation of the financial assistance scheme with expanding the presentcoverage in number and level, amount of scholarship should be increased based onincrement in educational expenses. Information dissemination must be strengthened,and PMT form should be offered to all aspirants without being biased, installmentamount should be disbursed in time, supervision and monitoring system needs to bemore effective, arrangement of part time job and soft education loan facility,improvement and expansion of the information dissemination method in the wholeprocess of the scheme, are the major suggestions reported by the beneficiaries forfurther improvement of the scheme.

3.2 RecommendationsAdequate human resources suitable to carry over all activities of the board should bedeveloped. At the same time necessary physical facilities to the offices is desirable sothat it helps perform its activities effectively.The scholarship amount received by the poor and needy people is not sufficient tofulfill their expenditure on education but it encouraged them to receive qualityeducation in accessible institution being regular student. It is also known that there isduplication in scholarship as the various agencies associated with Ministry ofEducation and other line ministries of Nepal government are providing differentscholarships through the institutions without any coordination between and amongthem. As a consequence, some were benefited from more than one scholarship from thestate fund whereas others with same socio-economic condition were deprived fromsingle benefit. Thus norms of social justice would require application of one doorpolicy by the state to distribute all the scholarship related to education from a singleinstitute. In this regard, the SFAFDB, a pioneer of the PMT method and working as anautonomous body, will be the appropriate institute to handle all types of scholarshipunder Ministry of Education. It will be justifiable because it has expertise in PMTmethod to select real poor, has gained experience directly on selection, distribution andmonitoring the poverty targeted scholarship scheme.

The norm set for the calculation of poor student is more scientific because it includesindicators based on capability approach instead of merely income level approach whichcould have lumped families in rural area and urban area having same level of income inthe same basket. Rural area may deprive from other individual advantages where urban


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area may enjoy them. Thus the methodology needs to replicate to other institutionsproviding facilities based on the level of poverty.

Information dissemination system regarding the scheme should be strengthen widely asall poor have not access in the program and it should be expanded to cover all poor. Toaddress the issue wisely a system of filling PMT form compulsorily should bedeveloped in all schools with the students appeared for SLC and class 12 examinationsalong with the examination form on a regular basis with proper verification. PMT formought to be available for all in time from their own school without any discrimination.It helps to solve the problem of information dissemination as it covers all aspirants.This provision identifies the total number of eligible candidates for scholarship withoutany favoritism and solves the lacking in information dissemination.

SFAFDB will select the poor student from the list according to its annual capacity. Thefinal list of selected students should also send to each school through DEOs includingwebsite of the board, public media, SMS through NTC as well as NCell and othersystems too. The role of Focal Person at DEO should be reviewed.

Now verification of the PMT forms has been made on sample basis. From thisprovision large numbers of fraud cases were entertained as the verification processcould not cover them. To overcome from this problem the process of verificationshould be done from school level where they fill and submit the form making theschool administration more rational. It helps to minimize the cost of verification on theone hand on the other hand all forms will be verified within short period reducing thetime taken to complete overall selection process.

It is desirable to intensify monitoring of beneficiary students on the use of the grant,their regularity (attendance) as well as performance through field visit by the SFAFDBofficials so that it becomes more effective rather than the current approach whichappears like just fulfilling a formality. In present practice beneficiary students werecontacted directly through their personal phone number ignoring the vital role ofconcerned school/college to monitor regular activities of the concerned studentincluding attendance that cannot be traced by field monitoring from the board. In thiscontext all the concerned educational institutions (public and community) should alsobe oriented on SFAS. It is also an urgent need to inform about the beneficiariesstudying in the institution and seek their monitoring report (attendance, performance,utilization of FA) from the administration regularly. It helps to strengthen the quality ofmonitoring and supervision work on the one hand and reduces the cost related with iton the other. At the same time the monitoring system should cover fund disbursementpractice in all districts as the beneficiaries has complained on the functioning of thefund administrator.

Many students reported that there were delayed in receiving sum of scholarship evenafter submitting all necessary documents. Many of them suffered because of suchpractices. Thus the board has to manage to deliver the FA immediately on receiving the


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necessary documents. For this purpose it should strengthen its Fund so that it canmanage if the amount is not received in time from concerned institution and canreimburse after receiving the amount/installment. On the other the short term problemscaused by fund crunch before release of approved budget to the board from ministriescan be addressed through institutional Over Draft from financial institutions. RBBL isready to offer it on minimum/nominal interest rate.

The scheme was praised by all stakeholders and demanded its continuity covering morestudents so that future generations also benefited from it. They also suggest that theprogram should extend up to Master Level to made access of poor and brilliant studentin this level. At the same time the FA amount should increase time and again at least tocover the increment in the cost of education. Beneficiaries also demanded that thescheme should also cover up technical and vocational education.

A system of providing information of the amount to the concerned beneficiaries shoulddevelop at low cost because some students have to spend large amount of money andtime to visit their bank to check their account. As of the present practice and suggestionfrom the concerned bank officials' full execution of SMS banking will be the betteroption that helps to save time and money of the student. The poor student demanded toeliminate the annual fee associated with SMS facility.

The role of Fund Administrator needs to limit only on fund disbursement. Theresponsibility of information dissemination, PMT form distribution and its collectionalong with verification, notify to the final beneficiaries, and collection and forwardingthe documents submitted by the student within given time with proper verificationshould provide only to the DOE/DEO networks. It may helps to solve the currentproblem of delay on scholarship release occurred by delaying from receiving thenecessary proof.

Work Study Program was a wisely coined initiation of the board but could not gain itstarget. Thus it should be carried out again effectively learning from the weakness of thepast. This program not only helps to the students to generate additional expenses theyneed but it will be an excellent chance to solve their unemployment problem as theycontinue the job after completing their study in the same enterprise.

The Student Loan Program will be beneficial to those students managing educationalexpenses either borrowing from money lender at high interest rate or selling property atcheaper price. Such loan can be managed mainly two ways – soft loan with bank incoordination with the board and managing by board itself creating a Revolving Fund.

It is hard to evaluate the program based on such small sample and informationgeneration procedure. Thus a detail evaluation study covering all the ecological zonesand development regions supporting from secondary information is needed to find outthe actual status of the program.


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REFERENCES

CBS (Central Bureau of Statistics) (2011). Nepal living standard survey, 2011,Statistical report, I Kathmandu: CBS.CBS (Central Bureau of Statistics) (2012b). Population census national report, 2011.Kathmandu: CBS.

EJG (Education Journalists Group) (ND). A Report on Follow-up and field monitoringof SFAS beneficiaries under SHEP. Kathmandu: EJG.

EZON (Education Journalist Network, Nepal) (2013). Independent Monitoring reportof beneficiaries student. Kathmandu: EZON

SFAFDB (Student Financial Assistance Fund Development Board) (2011). SFASachievements, execution challenges and modalities of its sustainability after thetermination of SHEP in Nepal. Concept Paper presented at Stakeholders ForumMeeting of SFAFDB. Lalitpur: SFAFDB.

SFAFDB (Student Financial Assistance Fund Development Board) (2013). IPR of firsttrimester report submitted to UGC. Kathmandu: SFAFDB.

SFAFDB (Student Financial Assistance Fund Development Board) (2010). Work-studypolicy 2010.


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ANNEXURES


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ANNEX-1

Annual PMT Calendar of Student Finance Assistance Fund Development Board(SFAFDB)

SN Work Description Period Responsible Institutionand Individuals

1PMT form Distribution andFill up by the PertinentStudents

November 10 toDecember 15

Concerned School, DEOs,SFAFDB website

2PMT formCollection/Submission

December 15- February8

2.1Collection from theConcerned School by theStudents

December 15-21 HT/Principal/SMC

2.2Collection by DEO fromConcerned School

December 22-January 4 HT/Principal/RPs

2.3Submission/Collection inFAFDB from DEOs

February 2-8 Focal Person of DEOs

3Entry MT Forms andCalculation of PMT Scores

February 2- March 14 SFAFDB

4Preliminary List Generation(Preliminary WelfareRanking)

16-22 March SFAFDB

5 HH Verification/Survey April 6- May 14 SFAFDB

6

Re-scoring of the HHSurveyed, Result Checking(Grade 10,11,12) Finalizedthe Welfare Ranking

June 15-29 SFAFDB

7Generation of Final WelfareRanking List

June 30-July 5 SFAFDB

8 Students' Result verification SFAFDB

8.1 SLC (Grade 10) July 16-21SFAFDB (depends on

receiving soft copy SLC resultsfrom COE)

8.2 +2 (Grade 11/12) September 17-23SFAFDB (depends on

receiving soft copy SLC resultsfrom HSEB)

9 Final List Publication9.1 For +2 level July 21-29

SFAFDB9.2 For Bachelor Level September 24-30

10Collection of NecessaryDocuments to prepare ACF

10.1 For HSL (+2 level) August 4-September 14 Students are mandated tosend and SFAFDB will

collect10.2 For Bachelor LevelSeptember 24-November 3

11Financial AssistanceDistribution

Throughout YearSFAFDB

12 Monitoring and Supervision As and when needed Regular staffs of SFAFDB13 Third Party Monitoring Twice a Year By Third Party


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ANNEX-2PMT Indicators and their Variables Options

Variable Name Variable Name1. Wall 7. Source of Drinking WaterBricks/Stone in cement mortar Piped water into the houseBricks/Stone in mud mortar Piped water outside the houseWood/Branches Hand pump/covered wellConcrete Open wellUnbaked bricks OthersOther material 8. Accessibility (Nearest Bus-Stop)No walls Half-an-hour walk2. Floor Between half and one hour walkEarth/Mud More than 1 hour walkWood/BranchesStone/Brick paved 9. Number of Young SiblingsTile 0Cement concrete 1 – 2Other material 3 or more3. Roof 10. Female Children at Private SchoolStraw/Thatch YesEarth/Mud NoWood/Planks 11. Father's EducationGalvanized iron No schoolingCement/Concrete No schooling but literateSlate/Tiles Under SLCOther SLC4. Toilet PCL/Higher EducationMunicipal flush 12. Mother’s EducationFlush with septic tank No schoolingNon-flush No schooling but literateCommunal latrine Under SLCOpen field SLC5. Lighting Facility PCL/Higher EducationElectricity 13. Ethnic-Wise Education (SLC Pass 20-29)

One bulbGas 14. Ilaka-Wise Poverty RateBio-gasKerosene 15. ConstantPetromax6. Cooking StoveOpen fireplaceMud stoveImproved stoveKeroseneGas stoveOther


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ANNEX-3SFAS Beneficiary (Cat- A) Students (3rd Cohort) Re-selected for Upper Grade

SNHSEB

Registration No.Full Name

Personal Account MaintainedBANK BRANCH

1 682008056 DILMAYA MAJHI SINDHULI

2 682002037 DIPESH BASNET SINDHULI

3 682030012 HIT KUMARI GHOLE SINDHULI

4 682037036 LAL KUMARI LAMICHHANE SINDHULI

5 682009079 SUNIL RAI SINDHULI

6 682009082 USHA SHRESTHA SINDHULI

7 682023031 RAMCHANDRA MOKTAN SINDHULI

8 683515063 MAMATA KC BHARATPUR

9 682102087 MAIYA TAMANG MANTHALI

10 682795145 PADAM RAJ AWASTHI KALANKI

11 682811009 BIR BAHADUR TAMANG BIDUR

12 680704035 LALITA RAI DHANKUTA

13 6608008035 UMA NEPALI BHOJPUR

14 680635015 BIKRANT KUMAR SHARMA INRUWA

15 680635011 BASHNTI KUMARI MEHTA INRUWA

16 680444114DEVENDRA RANAPAHELINEPAL

BIRTAMOD

17 684701080 SIRJANA SINGH PALPA

18 685112031 NABIN KHADKA SANDHIKHARKA

19 683957009 DIPAK BAHADUR DARJEE SYANJABAZAR

20 686703114 KOPILA SUNAR BAJURA

21 686831021 LAXMI KUMARI MALLA BAJHANG

22 685633032 GAITRA BASNET TULSIPUR

23 685606112 SANTOSH KUMAR NEPALI LAMAHI

24 687010014 DEV BAHADUR KUNWAR DIPAYAL

25 666502001 AJA BAHADUR RAWAT MUGU

26 666502029 DAL BAHADUR BUDHA MUGU


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ANNEX-4

Distribution of Students (Cohort I, II beneficiary and rest cohorts final list) andby Poverty by Districts

S.N District Total Students Percentage

% ofPopulation

below PovertyLine

1 Sindhuli 1779 8.8 60.3

2 Kalikot 1477 7.3 56.8

3 Dailekh 1392 6.8 51.6

4 Bajhang 1254 6.2 48.2

5 Bajura 1090 5.4 47.3

6 Rukum 1054 5.2 49.1

7 Rolpa 753 3.7 58.7

8 Kailali 602 3.0 50.4

9 Udayapur 550 2.7 50.8

10 Doti 531 2.6 46.4

11 Bardiya 483 2.4 44.9

12 Achham 432 2.1 51.6

13 Gorkha 401 2.0 38.2

14 Mugu 392 1.9 51.0

15 Baitadi 354 1.7 36.8

16 Pyuthan 327 1.6 51.5

17 Darchaula 323 1.6 37.7

18 Makwanpur 282 1.4 43.0

19 Rautahat 258 1.3 30.2 4

20 Jumla 257 1.3 34.4

21 Bhojpur 254 1.2 52.5

22 Dadeldhura 252 1.2 40.3


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23 Nuwakot 244 1.2 37.4

24 Jajarkot 242 1.2 44.1

25 Baglung 232 1.1 40.2

26 Taplejung 211 1.0 51.8

27 Kapilbastu 211 1.0 40.1

28 Sankhuwasabha 209 1.0 48.7

29 Ramechhap 202 1.0 48.0

30 Dhadhing 199 1.0 43.3

31 Dang 192 0.9 42.9

32 Surkhet 184 0.9 47.0

33 Dhankuta 179 0.9 46.0

34 Rupandehi 177 0.9 30.0

35 Bhaktapur 173 0.9 8.7

36 Khotang 170 0.8 53.5

37 Kanchanpur 169 0.8 30.0

38 Salyan 159 0.8 45.5

39 Panchthar 149 0.7 52.5

40 Syangja 141 0.7 35.1

41 Chitwan 139 0.7 11.9

42 Arghakhanchi 135 0.7 44.1

43 Parbat 134 0.7 34.1

44 Nawalparasi 130 0.6 36.3

45 Tanahu 125 0.6 34.6

46 Gulmi 125 0.6 42.5

47 Dolkha 118 0.6 33.6


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48 Okhaldhunga 109 0.5 42.7

49 Sunsari 108 0.5 21.2

50 Morang 107 0.5 17.2

51 Kavrepalanchok 96 0.5 35.1

52 Saptari 91 0.4 28.0

53 Terhathum 80 0.4 42.542.5

54 Jhapa 79 0.4 13.4

55 Siraha 79 0.4 29.0

56 Lamjung 64 0.3 31.5

57 Myagdi 59 0.3 34.8

58 Sindhupalchok 56 0.3 37.0

59 Dolpa 56 0.3 39.7

60 Parsa 55 0.3 23.5

61 Kaski 53 0.3 11.1

62 Ilam 45 0.2 39.7

63 Sarlahi 44 0.2 26.4

64 Solukhumbu 38 0.2 46.3

65 Banke 38 0.2 41.2

66 Dhanusha 37 0.2 26.9

67 Lalitpur 34 0.2 10.1

68 Bara 33 0.2 26.9

69 Mahottari 30 0.1 29.1

70 Mustang 23 0.1 25.8

71 Rasuwa 22 0.1 50.9

72 Kathmandu 20 0.1 4.4

73 Manang 14 0.1 21.2


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74 Humla 8 0.0 41.5

75 Palpa 0 0.0 42.9

76 Not available 2 0.0

Total 20,326 100

Source: 1. SFAFDB2. CBS, Nepalma garibiko laghuchhetra anuman, 2006 (2063 BS).


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ANNEX-5

SFAFDB Grouping of NLSS-II (2003/04 AD) based Caste/Ethnicity(Just for internal analysis purpose)

EthnicCode

Ethnic/CastName

EthnicCode

Ethnic/CastName

Ethniccode

Ethnic/Cast Name

So called Upper Caste

1Chhetri

2Brahaman(Paha

d)9

Yadav

14 Thakuri 20 Sanyasi 27 Brahaman(Tarai)

28 Baniya 48 Rajput 49 Kayastha

51 Marwadi 88 Panjabi/Shikh 96 Jain

Disadvantaged Janajatis

3 Magar 4 Tharu 5 Tamag

6 Newar 10 Rai 11 Gurung

13 Limbu 18 Koiri 21 Dhanuk

24 Sherpa 29 Gharti/Bhujel 32 Kumal

35 Rajbanshi 36 Sunuwar 42 Majhi

45 Danuwar 46 Chepang/Praja 52 Sanyal/Satar

53Dhogad/Jhang

ad57

Ganagai60

Thami

61 Dhimal 62 Bhote 66 Yakkha

67 Darai 68 Tajpuriya 69 Thakali

71 Pahari 74 Chentel 77 Bote

78Brahamu/Bara

m80

Jirel81

Aadibashi/Janajati

82 Dura 85 Meche 86 Lopcha

89 Kisan 90 Raji 91 Byangsi

92 Hayu 93 Koche 95 Walung


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97 Munda 98 Raute 99 Hayalmo

100Pattharkatta/K

uswadiya101

Kusunda

So Called Dalits

8 Kami 12 Damai/Dholi 15 Sarki

16Teli

17Chamar/Harijan

/ram19

Kurmi

22Musahar

23Dushadh/Pasaw

an25

Sonar

26 Kewat 30 Mallaha 31 Kalwar

33 Hajam/Thakur 34 Kanu 37 Sudi

38 Lohar 39 Tatma 40 Khatwe

41 Dhobi 43 Nuniya 44 Kumhar

47 Haluwai 50 Badhai 56 Kahar

58 Lodha 59 Rajbhar 63 Bid/Bida

64Vediyar/Gader

i70

Chidimar72

Mali

75 Dom 76 Kumar 79 Gaine

84 Badi 87 Halkhor 94 Dhuniya

Others Casts

7 Muslim 54 Dantar 55 Barai

65 Nurad 73 Badali 83 Chureta

102 Other Cast

Compiled from:Information gathered from Ministry of Federal Affairs and Local Development ofNepal, National Dalit Commission of Nepal, and National Foundation for Developmentof Indigenous Nationalities.


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ANNEX-6

Checklist used by the Individual Consultant for Field Monitoring

1. How did you get information about Student Financial Assistance Schemeexecuted by SFAFDB?

2. How did you get the PMT application form?

3. How did you fill the PMT application form?

4. Where did you submit the filled PMT forms?

5. How did you get information regarding your selection?

6. Did you get information about household verification/survey and delisting ifthe condition of information provided with malafied interest?

7. Are you and all selected in the final list you know are really poor?

8. Where did you open your individual bank account?

9. Where did you submit Student Bond, School enrollment proof and copy ofNepali citizenship documents?

10. Have you got financial assistance (scholarship) amount in your bankaccount?

11. Did this scholarship helped or have been helping in your study?

12. What do you think about the continuity of this scholarship provision; shouldit be continued or not after the termination of SHEP?

13. Do you have any feedbacks/suggestions to SFAFDB as main implementingagency?


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ANNEX-7

Questionnaire used in the StudyStudent Financial Assistance Fund Development Board (SFAFDB)

SHEP, SFASQuestionnaire to the beneficiaries Student

Student Code:SLC/HSEB Registration No.

Introductory Part

1 Student’s Name_____________________

2. Gender ………………

3. District: ___________________________________________ (UseCBS code)

4. VDC/Metropolitan area: _______________________________(Use CBS code)

5. Ward #: ........................................................................................

7. Time the interview started (use 24 hours timing)........................... :

8. Time the interview ended (use 24 hours timing)............................ :

9. Name of the interviewer: ___________________________ Code for the

interviewer:

10. Date of interview:

Day Month Year

11. Interview Status: 1. Completed

2. Uncompleted

07


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Reason__________________

Section 100 Tracer

No. Questions and FiltersCODING CATEGORIES

SKIP

101. What are you currently doing?

Studying ..................................... 1

Working…………………………….2Not doinganything…………………3

Looking for ajob…………………4

Others(specify)……………………5

102

103

104

104

102 Enrolment Date: ………………

DD/Month/Year

Program:………………………………………………… Level:

School/Campus Name:……………………………

School/Campus Address:…………………………

103 Employer’s Details –

Name of theOrganization:………………

Type of Organization: 1. Private 2.Public

3. Selfemployed

Address of the organization:……………………


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SKIP

104 What were you doing beforereceiving this scholarship?

Studying ..................................... 1

Working………………………….2

Not doinganything…………………3

Looking for ajob………………….4

Others(specify)……………………5

105 How important were/are thefollowing reasons for your decisionto study at your institution? Thescale of answers ranges between:1 = not at all important; 2 =moderately important; 3 =important; 4 = very important; 5 =most important.Please read scale of answers outloud. If one of the reasons shouldnot apply to the respondent, pleasecheck “not at all important”.

1 2 3 45 School/ College nearby

1 234 5 low tuition fee

1 2 3 4 5 Reputation of theschool

1 2 3 4 5 Friends, relativesstudying

Other, please specify……..

Section 200 Outreach


SKIP


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SKIP

201 How did you know about thescholarship?

From

Media(Radio/TV/newspaper)……1

From Internet…………………2

FromSMC………………………3

From HeadTeacher…………….4

FromTeachers………………….5

FromFriends………………….6

From students who previouslyapplied…7

Others, pleasespecify…………………

202 From whom did you receive thePMTform ?

From school………………1

From DEO………………2

Downloaded from website….3

Others, pleasespecify…………..

203 Do you know of anyone whowanted to fill up the PMT form butcould not get the form?

Yes……………………1

No………………………2

If yes please write thereason……….

204 How many students from yourschool filled the PMT form?

……………….


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SKIP

205 How were you notified of havingbeen given the scholarship?

From

Media(Radio/TV/newspaper)……1

From Internet…………………2

FromSMC………………………3

From HeadTeacher…………….4

FromTeachers………………….5

FromFriends………………….6

From students who previouslyapplied…7

Others, pleasespecify…………………

206 Did someone come to your housefor verification?

Yes……………………1

No………………………2

Section 300 Targeting


SKIP

301 Would you have attendedschool/college if you had notreceived scholarship?

Yes……………………1

No………………………2

302 Is there anyone in your family whocould not continue school/collegebecause of financial reasons?

Yes……………………1

No………………………2


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SKIP

303 How much help has the scholarshipbeen to you and your family inmanaging the costs of education?

The scale of answers ranges between:1 = not at all helpful; 2 = somehowhelpful; 3 = helpful; 4 = very helpful;5 = most helpful.

304 Do you think all deserving studentsare receiving the scholarship?

Yes……………………1

No………………………2

304.1

Who or what type of deservingstudents do not receive scholarship?

(write)……………………

304.2

Do you know anyone from yourschool who filled the form, wasfinancially weaker than you but didnot get the scholarship?

Yes……………………1

No………………………2

305 Do you think students should receivescholarships based on whether theirfamilies can afford education, or onthe basis of merit or both need andmerit based scholarships?

Meritbased……………………1

needbased………………………2

Both(merit andneed)……………..3

Section 400: Additional questions

401. Please tell us how you were selected for the scholarship? If you know.402. In your opinion, how can the scholarship program be improved?


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ANNEX-8

Specimen Copy of Student Bond (KABULIYATNAMA)


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ANNEX-9Specimen Copy of PMT Form


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ANNEX-10

Form Used by SFAFDB for Field Based Beneficiary MonitoringTable No. 1: Academic Continuation and Performance

District : Category : SFAS Batch: FY:

SN

Fullnameofstuden

t

SFAScodeno. of

thestuden

t

Name ofSchool/College with

fulladdress

PhysicalPresence

Continuation

View of school principal/classteacher on overall performance

Performance ininternal exams Rem

arksgiven

bythe

Principal

Present

Absent

Leave

Continue

Dropped

Boosted

Stable

Fluctuation

Declined

Passed

Failed

Absent

Table No. 2: Feedback of beneficiaries’ in regard to SFAS

District : SFAS batch : FY Year: Category :Trimester :

SN

Full

nameofstudent

SFAS

code

no.of

thestudent

Nameof

School/Collegewith

fulladdress

Commenton the FAreceived

Adequacyof FA

Guardiansview asreported

by thebeneficiari

es

View onPMT

method

View on FAdelivery

mechanism

Work studyprovision

Beneficial

Nodifference

Notbeneficial

Sufficient

Notsufficient

Supportive

Appreciate

Indifferent

Infavor

Good

Tedious

Poor

Effectiv

e

Satisfactor

y

Poor

Good

Satisfactor

y

Notnecessar

y

Table No. 3: Collection of beneficiaries'


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yearly final exam symbol numbers

District : SFAS batch : FY Year: Category : Trimester :

SNFull nameof student

SFAScodeno. of

thestudent

Name ofSchool/College

with fulladdress

AffiliatedBoard or

University

RegistrationNo.

Classor

Year

YearlyFinalExam

SymbolNo.

Remarks

Table No. 4: Verified results of beneficiaries’ in yearly final exams

District : SFAS batch : FY Year: Category : Trimester :

SNFull

name ofstudent

SFAS codeno. of thestudent

Name ofSchool/College

with fulladdress

AffiliatedBoard or

University

RegistrationNo.

Class orYear

Yearly FinalExam Symbol

No.

Result

Remarks

Passed Failed Withheld

Note: Separate sheet for categories and batches will be used. Covering approval letters from related schools in regard to beneficiaries' monitoring will be mandatory.

Surveyors' Detail: Signature: Full Name: Date:


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ANNEX-11

SFAS Background, its Implementation Progress and SWOT Analysis

1. SFAS Background

1.1 Scenario of Education in NepalEducation is considered an important engine for the empowerment of the people on theone and socio-economic development of the nation on the other. Along with theintroduction of multiparty democracy in 1990, constitutional and legal provisions putdown greater room for equal opportunities recognizing right to education to all citizensirrespective of gender, caste, ethnicity, religion, economic status and geography.It is further imperative in the present context of inclusiveness in every sector of thesocio-economic field. Today it has been accepted as fundamental right of the citizen.However, education level of Nepalese people is still poor though the rate of literacyseems inspiring7 and increasing gradually as the government adopted a global program'education for all' guided by the Millennium Development Goals (MDGs) andassurance of Nepal. On the previous achievement and current national situation it isvery hard to achieve the goal within coming two years. The literacy as well as level ofeducation is further worsening in poor and backward communities and familiesespecially due to lack of awareness of the parents and their affordability. The disparityin enrolment between richest and poorest quintiles at higher secondary and tertiarylevel helps to confirm the situation.Table 19: Literacy Statuses in Nepal, 2011

Area LiteratePassed SLCand above

Nepal 65.9 10.5

Urban 82.2 23.1

Rural 62.5 6.9

Mountain 60.5 5.8

Hill 72.3 12.6

Terai 61.2 8.9

CBS, National Population Census Report, 2012.

The proportion of population (6 years and above) that never attended school amongconsumption quintiles ranges from 44.2 percent in the poorest quintile to 21.3 percentin the richest quintile. Share of female in this category seems high compared with themales and the gap decrease for the higher consumption quintiles. For instance, femalepopulation that never attended school is 53 percent in the poorest quintile (male,

7 According to the population census 2011 about 66 percent Nepalese at and above five years are foundliterate.


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32.9%) while the corresponding proportion for the richest quintile is 31 percent (male,9.9%) (CBS, 2011). Table 5.3

Among the family members aged 6-24 years of age who never attended any educationalinstitution reported various causes. Among the causes parents did not want to sendthem mainly being unable to invest on education is major one (30%) followed by theyhad to help at home to support their family (25.5 %), not willing to attend (17.2%), theeducation is too expensive (7.3%). Besides them too young, disability and school farway are the other reasons for not attending school (CBS, 2011).

By gender groups, not willing to attend, parent did not want, too young and help athome are the most reported reason for males while parent did not want, help at homeand not willing to attend are the dominant reason for females. On the other, largenumber of students has dropped their study before completing desired level. Amongthem 25 percent leave due to their poor academic progress while 22 percent reportedhelp needed at home as the primary reason for leaving school, 17 percent leave schoolbecause of marriage. Other reasons are parent did not want (7%) and too expensive(7%)(CBS, 2011).

Overall, 72 percent of currently school/college enrolled populations attendedgovernment/community schools. Urban areas have remarkably less (42.9%) students insuch institutions than rural areas (79.1%). About 93 percent of the students from thepoorest quintile are currently attending government/community schools while theproportion declines as the income level increases. The proportion of enrollment atgovernment/community schools also differs by development regions and ecologicalzones (CBS, 2011).


Area and ConsumptionQuintile

Enrolment atCommunity/Govern

mentSchool/College(in

%)Nepal 71.9Urban 42.9Rural 79.1

Consumption QuintilePoorest 92.7Second 86.5Third 79.1Fourth 64.3Richest 39.0

Source: CBS, Nepal Living Standard Survey, 2010-11.

1.2 Initiation of the Scheme


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Looking at the poor scenario in education sector especially in poorcommunities/families Student Financial Assistance Scheme (SFAS) was initiated. Thescheme is managed by the Student Financial Assistance Fund Development Board(SFAFDB) established in March 06, 2006. It is established under the Bikash SamitiAin, 2013(3) and governed by nine members representing different sectors; headed bythe Chairperson of University Grant Commission (UGC) and the Executive Director ofSFAFDB is the member-secretary. It is a pioneering step to support the poor andbrilliant students who cannot continue their study without outside financial support.The overall objective of the scheme was to ensure access of poor or low income groupstudents to higher secondary and higher education on the basis of Proxy Means Testing(PMT) score. The specific objectives are to:

i) Establish a pro-poor targeting method for scholarship distribution, andii) Ensure that students from disadvantaged groups had an opportunity to obtain

higher education through financial assistance provided by the project.

2. Implementation Progress

2.1 Implementation ArrangementIn the starting phase (cohort) this program was implemented in 24 Districts of FarWestern and Mid Western Development Regions. In the beginning the Board hadperformed the activities itself. From the second cohort the SFAFDB made a contractwith Rastriya Banijya Bank Limited (RBBL)8 as a fund-administrator which is selectedon a national competitive bidding. The bank also sub-contracted some of its activitieswith the RIDA Pvt. Ltd. and DEVTEC Nepal Pvt. Ltd. Some constraints wereexperienced on its execution under the arrangement. To overcome the constraintsexperienced the implementation arrangement was changed on the basis of agreedrestructuring model between government of Nepal (GON) and World Bank (WB). Inthe new arrangement the role of the bank (RBBL) has been limited only on appealcollection, fund channeling, partial monitoring and reporting. So the bank/RBBLterminated the contracts with the sub-contractors.In the third cohort SFAFDB has contracted the DEVTEC Nepal Pvt. Ltd. on SSS tocarryout poverty assessment of PMT applicants including PMT form distribution,collection, scoring, SLC and HSEB result verification, prepare preliminary list,verification of the applicant self-assessed forms on a sample basis, comparison ofscores, prepare final list of beneficiaries, trimester basis academic progress monitoringof first and second cohort beneficiaries and reporting to the board.

As the strength and experience of the board increases the existing contract withDEVTEC was expired. Since this period (from fourth cohort) all SFAS activities arebeing managed by the board itself in coordination with Department of Education(DOE), District Education Offices (DEOs), Office of the Controller of Examination(OCE) known by SLC Board and Higher Secondary Education Board (HSEB). Onlythe task of individual SFAS bank account opening of the final list students, appealcollection, document collection, and Financial Assistance (FA) disbursement to theindividual accounts of the beneficiaries is assigned to the RBBL. SFAFDB hired

8 A bank owned by Nepal government.


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required number of field personnel and data entry personnel and individual consultantswere also contracted to perform the specific task as and when needed.

2.2 Selection ProceduresThe selection process of the students in this scheme has to pass from different stagessuch as - Information dissemination, application form distribution and collection, PMTscore preliminary list generation, field verification, final list publication, bank accountopening, essential document collection, and FA disbursement are the major activitiesunder the scheme. It takes almost six months time9

2.2.1 Information Dissemination SystemThere is no uniformity in the information dissemination of the program from thebeginning of its execution to present. In the beginning (first cohort) of the scheme allthe information regarding the scholarship was disseminated by the SFAFDB in theprogram area through radio notice broadcasting, regional workshops,10 distribution ofPMT forms and information booklets. In the second and third year (cohort) theactivities like radio broadcasting, PMT forms and information booklets distributionwere the same as of first cohort where PMT form publication distribution, orientationand dissemination was held at district level instead of regional level where SchoolInspectors were also added as the participant in the workshops. The task wasundertaken by RBBL through sub-contractors as the bank was nominated as Fund-administrator of the scheme. In addition to that one official in each DEOs focal personwere for information dissemination and to distribute and collect PMT forms at districtlevel.Mobilizing the private firms by commercial banks (RBBL) to get desired outputs intime was felt challenging because they were not found concentrated in a single project.Facing the huddles SFAFDB changed the arrangement and undertaken the task ofinformation dissemination from the fourth cohort to present and performing better thanearlier. National level radio notice broadcasting is being done by Uzyalo networks forabout 20 days to disseminate the information regarding the process and timing tosubmit application form as per the annual calendar. Likewise, notices in Gorkhapatraand Kantipur National Daily are being published to inform the eligible PMT applicantsand other stakeholders as per the annual calendar (Annex I). To internalize the PMTbased SFAS, distribution as well as collection of PMT forms and distribution ofinformation booklets, at district level are being done in coordination with DOE. TheDEO focal person has been made responsible to manage PMT activities at respectivedistricts then send back the filled PMT forms back to SFAFDB.

2.2.2 Distribution and Collection of PMT FormIn first cohort 50,000 forms were distributed in all the program districts11. On the whole13,051 PMT forms (about 26 %) were collected, though the 22 DEOs. Humla andJumla had not responded the program despite frequent request of the board. From thesecond cohort the program had covered all the 75 districts of the country; more PMT

9 See Annex: I Annual Calendar of Student Finance Assistance Scheme.

10 District Education Officers, Resource Persons, Regional Education Officer and Head teachersfrom Secondary and Higher Secondary Schools of the regions were the participants of theworkshops.11 24 districts of far-western and mid-western development regions.


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forms were distributed and collected and the proportion of collected forms hasincreased gradually over the years and reached 39 percent in the fifth cohort (Table 21)Department of Education and HSEB regional and district level networks have beenmobilized in the later two cohorts. In second and third cohort field level activities weremanaged by sub-consultants where the collection percentage is not satisfactory.

Table 21: Status of Application Form Distribution and Collection by CohortCohort Number of Forms

DistributedNumber of Forms

CollectedPercentage of

Application formsCollected

First 50,000 13,051 26.1Second 80,000 13,304 16.63Third 80,000 17,393 21.74Fourth 80,000 21,000 26.25Fifth 130,000 51,200 39.38

Source: SFAFDB.

2.2.3 Score CalculationThe prime objective of SFAS is to identify poorest of the poor students and providethem financial support to assure their access on higher education in Nepal. The bestway of identifying poorest students would be to measure how much their families earn,consume or spend per year. Knowing the value of the families’ assets is anotheralternative. Unfortunately, measuring true economic status using actual consumption,income or wealth is very costly and administratively not feasible from the programlevel. Thus to overcome from the dilemma SFAFDB had developed new softwareknown by PMT software to compute the PMT score12 of the applicants based on theirdifferent household attributes, to verify their SLC and HSEB result and generate outputtables as desired. These indicators are taken from the list of statistically significantwelfare variables from the Nepal Living Standard Survey (NLSS) 2003/04.Thesoftware was updated and used to calculate and select the beneficiaries till date. Thecomputed score was ranked in ascending order for further process including screening.The minimum and maximum scores range from 245.7 and 546.1. There is more chanceof the applicant to be selected for the scheme, if the score closer to the minimum due tolimited number of available seats. The scores further divided into five brackets orquintiles with the score range presented in table 22. While selecting beneficiaries in thisprogram the applicant of fourth and fifth quintile are excluded from the list at the start.

Table 22: Quintile DistributionsQuintile From ToFirst 245.7 305.9Second 306.0 366.0Third 366.1 426.1Fourth 426.2 486.2Fifth 486.3 546.1

Source: SFAFDB.

12 Altogether 13 indicators are taken mainly based on NLSS 2003/04. The indicators and variablesname is presented in Annex II.


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Students form the first and second quintiles have better chances of being selected. Butas the scheme is designed to ensure a given proportion of female students (40% in HSEand 35% in HE) among the total number of beneficiaries, female students might have tobe selected from third quintile as well.

2.2.4 Result CheckingTo check whether the applicants passed or not the SLC or HSEB exams, SFAFDB hasa system of result checking on the basis of applicants registration numbers stated in thePMT form. In initial years, results of the eligible students from both SLC and +2 levelswere verified manually with the help of the concerned institutions. The task wasperformed by the board itself in the first cohort, by the sub-consultants in the secondcohort. From the third cohort electronic copies of SLC, class 11 and 12 results werereceived from the respective institutions. This development minimized the time andcost of verification compared to the previous years. Moreover, system of providingSLC and HSEB results regularly to SFAFDB has been established. A sample of SLCresult checking of the fourth cohort PMT applicants is presented in table 23. Theinformation highlights that the pass percentage was increasing as the economic status ofthe family increases.Table 23: Share of Applicants and their SLC Result by Consumption Quintile (4th

Cohort)Table 23 further shows thateither the poor have accessto the PMT formsdistributed as major portionof the both pass and failapplicants are under lowconsumption quintiles orwell enough consumptionquintile/rich family

students are screened out in the process of PMT application. Moreover, pass percentageof the girls seems low while compared to their counter parts demands provision ofsome kind of inclusion to the group.

Board has also checked about the re-selection of its previous beneficiaries, for thispurpose SFAS third cohort category-A (HSS level) students data were checked toidentify whether they have been selected as beneficiary in the fifth cohort Category-B(HE level) or not. The analysis outcome is that out of total beneficiaries of the batchunder the Category-A, 26 students have again been selected to get FA under category-Bto study next level indicating poor can continue their education as they receivedsupport. A list of the students re-selected for upper grade is presented in Annex-3.

2.2.3 Preliminary and Final List PublicationIn the initial two years, preliminary lists of expected beneficiaries were published inreputed daily news paper, after scoring and result checking of the PMT applicants,considering that will sufficient to cover the quota/target of the concerned academicyear. In the third cohort waiting list was also published to address the crunch ofbeneficiary enrollment in the program. From fourth cohort, preliminary list were not

ConsumptionQuintile

TotalApplicants

Pass Fail

I 4,058 62.10 37.90II 4,974 67.19 32.81

III 1,418 78.14 21.86

IV 138 86.96 13.04V 3 100.00 0.00

Total 10,591 66.97 33.03


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published as the board has experienced that many students became confused in thepreliminary and final list. But it was prepared for internal purpose. Based on thepreliminary welfare ranking list, filed verification was also completed on sample basis.Survey findings were again computed through the system, comparison of PMT scorebefore and after HH survey were done. After delisting (if found PMT score higher thanhis/her score generated on the basis of self assessment) final lists were published.Board has transparent system to disclose all eligible PMT applicants’ total PMT score.On the basis of applicants respective registration numbers they can find their total PMTscore on SFAFDB website, District and category wise final lists can also bedownloaded from Board's website (www.sfafdb.edu.np). Individual final selection canalso be obtained through the Nepal Telecom IVR system when one dials 1640 thenapplicants’ registration number following system instruction.

Final list students can receive grants only after submitting proofs of enrollment and,Nepali citizen including signed bond promoted under the SFAS. Once, board receivesthe set of documents from the final list students the students will be enrolled asbeneficiaries to get financial assistances form the programme. The documents are beingcollected through boards' online reporting system as RBBL branches in 64 districtshave their unique user ID and password to send students submitted documentsinformation from SFAFDB website; incomplete set of documents becomes disqualifiedautomatically through the system.

Table 24: Expected Beneficiaries and Progress for the Academic YearAcademic

Year/SFASCohorts

Target Proportion of Actual Beneficiaries(%)

HSS HE Total HSS HE Total

2008/09 (I) 300 300 600 58.67 76.00 67.332009/10 (II) 1,000 800 1,800 72.70 99.25 84.502010/11 (III) 1,000 800 1,800 118.30 106.00 112.832011/12 (IV) 1,000 800 1,800 178.40 217.63 195.832012/13 (V) 1,000 800 1,800 352.10 447.63 394.56

Total 4,300 3,500 7,800 171.88 205.49 186.96In the first cohort, only 404 applicants from both the level were selected as abeneficiary which was two-third of the target (59% in HSS and 76% in HE). In thesecond cohort SFAS has become to meet 85 percent target increasing progress (73%first level and 99 percent in second level) in both the level/category. From third cohortprogress rate exceeds the target which reached more than 3.5 times in the fifth cohortindicating increasing efficiency of the Board (Table 24), however, on an average duringthe first phase of the scheme (5 years) the Board has been found able to attain progressby 187 percent.

Board has generated specialization area wise data of SFAS beneficiary students in thefifth cohort (Table 25). As per the information large share of students benefited fromscholarship are from general education followed by management indicating low accessof poor students in technical education at Higher Secondary Level. Likewise in higher


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level education faculty of education attracted nearly two-fifths students where againmanagement stood in the second priority to the students benefited from scholarship. Itmay be due to two reasons – increasing number of job in the schools and lowperformance of the students. This information clearly directs to focus/intervention tothe technical education rather than general subjects as unemployed youth may beunproductive to the nation.

Table 25: Share of Beneficiaries of Fifth Cohort by their Area of SpecializationCategory-A (HSS Level)

Area ofSpecialization

No ofStudents

Percentage

General Education 2,017 57.28

Management 765 21.73

Science 288 8.18

Humanities 246 6.99

Educational health 66 1.87

Others 2.50

Not mentioned 51 1.45

Total 3,521 100.00

Category-B(HE Level)

Education 2,089 58.34

Management 1,062 29.66

Humanities 264 7.37

Science 107 2.99

Others 1.37

Not mentioned 10 0.28

Total 3,581 100.00

2.2.5 Field VerificationIn order to verify the information given by the applicants in PMT form an effectiveverification process was undertaken. The verified data was processed through PMTSoftware and compared with previous data provided by the applicants. It was found thatsome of the scores vary with the previous score as most of the information filled by the


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students was not correct. In such a situation the score obtained after verification wasconsidered as the basis of selection. Delisting ratio of the HH verification was 51 % inthe first cohort which was reduced gradually to about 10 % in the fifth cohort (Table-26). This situation further demands a strong verification process through trained andrational personnel.Table 26: Delisting of the Students on the basis of HH Verification

CohortHH

VerifiedNo

DelistedNo

DelistingPercentage

First 404 208 51.00Second 1,800 403 22.38Third 1,494 169 11.31Fourth 404 42 10.39Fifth 501 50 9.98Total/Avg. 4,603 872 18.84 %

2.2.6 Preparation and Publication of Final Merit ListAfter calculating the score and delisting the applicants above the original cutoff scorefrom the expected beneficiaries a final list of eligible beneficiaries was published on thebasis of merit. While preparing the final list inclusive approach 13 was taken intoconsideration. The list of the students starts from the lowest welfare score or inascending order. Final list students will be responsible for sending the essentialdocuments (i.e. i) Certificate from the institution that the student has been admitted, ii)Bond that he/she will obey the regulations of the SFAFDB, iii) Copy of Nepalicitizenship certificate, and iv) Individual bank account number of the student in RBBLor [Nepal Bank Limited (NBL) in 12 districts where no branch of RBBL is available] toSFAFDB either by fax or by post or through the bank (RBBL).

2.2.7 Right to AppealUnder this program there is a provision of appeal with the board by the student if (s)hedoes not satisfy with the final merit list. In those cases, the students can claim to theboard directly or through related institutions with a deposit of NRs.300 for verification.If the claim turns out to be true (s)he will be added in the beneficiaries list to receivegrant and NRs.300 deposited the student will also be refunded. But till date only oneappeal claimed from Mugu district proved true and now he is getting FA amount.

2.2.8 Individual Bank Account Opening and Document CollectionOpening bank account in the nearest RBBL or NBL (where RBBL service is absence14)by each of the selected merit based students of both level and collection of necessarydocuments is the final process of the scheme. The final list students have to sendessential documents (attested copy of citizenship certificate, proof of admission atschool/college, school registration number, individual bank account number and

13 Preferential treatment of females by maintaining an adequate share of beneficiaries seats for female 40percent in HSE and 35 percent in HE. Disadvantaged caste/ethnicity group is being given a preferenceindirectly by giving them higher weights in selection formula of this program.

14 Out of total, RBBL covers 87 percent and NBL covers 13 percent beneficiaries on the basis of studentsaccounts maintained in the bank.


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student bond that he/she will obey the rules and regulations of the SFAFDB) to theboard within 45 days from the date of final list publication15 through concerned bankwhere their bank account is open. The students can also submit the essential documentsdirectly to SFAFDB either by FAX or through e-mail or by post office that may reducetime for getting Financial Assistance (FA) 16 to the selected students. Only afterreceiving the complete set of documents the board proceeds to disburse the approvedfinancial assistance amount as grant in installments to the individual bank account ofthe beneficiaries through fund-administrator (RBBL) and E-banking system. It is alsoexperienced that some students have failed to send the all necessary documents in timeand deprived from getting the benefit each year17.Independent monitoring report of EJG shows that some of the final list students fromfar-western region found migrated to India to get jobs and other may be theunawareness of the students about the compulsion to send complete set of documents asBoard has received incomplete sets too.

2.2.8 Financial Assistance (FA) DistributionAfter completing the whole process the board starts to distribute financial assistancethrough bank (RBBL) in their respective districts to the final list students who hadsubmitted the set of necessary documents18 to SFAFDB. The approved FA amount asgrant is disbursed to the individual bank accounts of the beneficiaries’ by the Fund-administrator in annual installment. To enhance FA disbursement process, RBBL hasagreed to add provision of especial SFAS account in the accounting software(PUMORI) the bank has been using. Since the execution of E-banking system before ayear, both time and cost to disburse FA to the beneficiaries has been remarkablyreduced and this is proven a mile stone for direct cash transfer to the targeted. Normallyan expectant has to wait one full year, starting from November to next November as perthe annual calendar19 to complete the whole process. As being a long process the boarddemands application for +2 levels while studying at class 10 and for bachelor whilestudying at class 12.

2.2.9Monitoring and SupervisionMonitoring and supervision of the implementing organization as well as beneficiaries isthe important part of a project to make it more effective as per its objectives througheliminating or minimizing the discrepancy while implementing the project activities. Inthis project both the approaches – field monitoring (trimester monitoring), and

15 Final lists students are being publicly notified to submit the essential documents to SFAFDB. Studentswho were unable to send the documents could not receive the benefit.

16 The Scheme has been providing financial assistance (NRs.16,000 for +2 students in two installmentsand NRs.40,000 to the Bachelor level students in three installments) as grant through the fund-administrator (RBBL), to the individual bank accounts of its beneficiaries.

17 This was not only because of the reason that the beneficiaries were not well informed about theirresponsibility of sending academic continuation proof and results, but also because of fund-administrator’s (RBBL’s) untrained system to establish proper arrangement for collecting thedocuments.

18 Copy of Nepali Citizenship Certificate, Student Bond stating their individual bank account number, andrelated academic institution certified Admission Proof.19 See Annex-1 for detail of SFAFDB’s Annual PMT Calendar


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documents (final results and proof of academic continuation) monitoring were adoptedon the basis of developed monitoring format though could not perform the taskeffectively due to lack of adequate manpower as the program expansion. A checklistwas used to make field monitoring more informative.The Fund-Administer is maintaining separate files of SFAS beneficiaries in therespective districts, however, the branch manager and accountants are not fully awareas needed. It may happen due to two reasons-as the trained staff replaced by newcomer,and the RBBL and its staffs did not offer importance to the SFAS activities being apure commercial bank. At the same time in the second and third cohort the task ofmonitoring and supervision was also assigned to the bank itself but it was found fullyneglected by the than sub-consultants.

In the second and third cohort, the private firms (RIDA and DEVTEC) were appointedas a consultant to perform the tasks such as: process of PMT form distribution andcollection, computation of PMT score, SLC and HSEB result verification, filedmonitoring and WSP related activities through Fund-Administer. But theprofessionalism of the firm has observed unsatisfactory during the period. As a resultthe contract with the firm did not extend. Realizing the poor performance of the schemecaused by the working modalities of the bank and consultant institution, SFAFDB itselfstarted to perform all these activities through its regular staffs and hiring individualconsultants to perform specific task as and when needed. SFAFDB also monitored itsbeneficiaries through its consultants. For this purpose specific monitoring forms(Annex-10) were used for the uniformity of the information.

2.10 Work-Study ProgramThe scholarship (financial assistance) amount provided by the SFAFDB could notcover the total educational expenses of the beneficiary students. It is only sufficient tocover tuition fee and stationary in the community colleges in urban places likeKathmandu and Pokhara where they are managing other expenses from differentsources including loan from village money lender, selling property. To meet theadditional expenses inadequate to continue their study further the board had proposedWork Study Program (WSP). The concept is designed to assist students to get part timejobs during study period20 through providing short term training to the beneficiaries (ifneeded), lobbying for income generation activities, and gathering information on parttime work opportunities. But the institution could not guarantee a job.In this connection SFAFDB has prepared 'Work-Study Policy 2010, to link eligiblebeneficiaries and employers. Meetings and discussions were held with the concernedstakeholders such as: FNCCI, CCI of concerned districts and municipalities, HotelAssociations, Restaurant Associations. Theoretically all they found positive to provideopportunities. Memorandum of Understanding (MOU) has signed with Lekhnath andKanchanpur Chamber of Commerce and Industries to execute WSP. As a consequence,few students have got jobs in coordination of SFAFDB officials and FNCCIrepresentatives. The rosters (cohort wise) of eligible beneficiaries under Work-studyprovision were prepared and kept on SFAFDB web-site to help the eligiblebeneficiaries and employers to inform about their necessities. But the program could

20 Two years to five years as per the duration of their academic programs.


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not continue because of several reasons including insufficient human resources in theBoard to follow it and probable private sector employers prerequisite for assuranceform SFAFDB that its beneficiaries will be the member of trade unions and neverengaged in collective bargaining.

2.2.11 Student LoanIn the condition of insufficiency of the total amount received from FA and WSPincome SFAFDB has proposed another option – Student Loan Scheme. Under this planthe needy beneficiaries may get up to NRs. 10,000 soft loan from Fund-administrator(RBB) keeping their certificate as collateral that will be helpful to the needy poorstudents who are managing their expenses borrowing loan from village money lender inhigh interest and selling their limited property at cheaper price. According to the planthe loan amount should be paid during their study period as per the contract betweenstudents and the Fund Administrator. But the program could not continue.

2.2.12 SFAFDB Financing and Targeting SystemSFAFDB is being financed by the SHEP through UGC Nepal as UGC is the costscentre to three implementing agencies SFAFDB, TU and the UGC self. In the wholehistory of SHEP the Board has not being able to get its full approved annual budgetbased on AWPB; SHEP as a whole has not being able get budget released in time. Inspite of the fact, analysis21 of incremental operation cost of SFAFDB by the time of thisstudy has shows that PMT based poverty targeting and SFAFDB system is costeffective to manage scholarship.

2.2.13 Sustainability of the ProgramSFAS is being established as the less challenged model to select poorer and providefinancial assistance to needy students. So, internalization and sustainability of thisscheme is a crucial issue. If we can internalize it, continuation of the scheme after thetermination of SHEP will be assured. The SFAFDB slowly and gradually is growing upas a specialized agency for PMT in Nepal. So sustainability of the board for thecontinuation of SFAS after the termination SHEP is must. Stakeholder’s forum hasbeen formed. Practice of presenting progress in the forum meeting and getting policyinstructions from the meeting has started. For sustainability of SFAS, SFAFDB hasorganized a Fund and formed a Sub-Committee with the aim to increase SFA fund inorder to sustain SFAS, and to grasp corporate social responsibility. The sub-committeecomprises seven members assuring representation of industrialists and social workersheaded by a Board nominated SFAFDB member as coordinator.

21 SFAFDB operation cost (program and office operation included) has been maintained at about 7% during last year’s and the share of office operation cost (IOC and consumption expenditure) onlyis about 4 %.


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3. Analysis of the Students aspirants of the SFASThe SFAS has now completed seven years of establishment. During this period it hassupported 14,583 (7,391 for HSS and 7,192 for HE) exceeding the target of 7,800 infive batch starting from 2008/09. The number of aspirant for the scholarship is veryhigh from the beginning and increasing remarkably over the years as its publicity gainmomentum.As of the record with contact address of students available in SFAFDB, it provideddatabase of 20,326 students though some of the early batches applicants list was notavailable in the SFAFDB record. Based on the information the number of aspirant isfound increasing significantly year after year. In the first cohort only 277 (228 in HEand 49 in HSS) or 1.4 percent of the total applicants list was available however, thisyear 404 students received scholarship from the scheme. It is 404 in second cohortwhere no list of single applicant for HSS found in record. In this cohort, 1530 studentsreceived scholarship. The fifth cohort alone covered 55 percent of the total applicantsof the program (Table 27). It is mainly two reasons – not availability of complete list upto third cohort and increasing knowledge of the people about the scheme. In absoluteterms the number of aspirants in HSS is relatively high except first two years (wherecomplete list is not available) which is natural that the base (eligible population) ofHSS (+2) is higher than bachelor level education.

Table 27: Share of total applicant Students during Last Five Years

Cohort HE% ofHE HSS

% ofHSS

GrandTotal

% of GrandTotal

First 228 2.3 49 0.5 277 1.4

Second 404 4.1 NA NA 404 2.0

Third 1240 12.6 1760 16.8 3000 14.8

Forth (final liststudents) 2500 25.5 3000 28.6 5500 27.1

Fifth (final liststudents) 5447 55.5 5698 54.2 11145 54.8

Total 9819 100.0 10507 100.0 20326 100.0

Source: SFAFDB data sheet

SFAFDB has completed selection of students in all five cohorts and the enrollment ofthe students to disburse Financial Assistance (FA). Board has selected more studentsthan targeted in the PAD and it was agreed with IDA during the extension of theSFAFDB-RBBL contact. While analyzing the list of beneficiaries22 and applicant23 inthe fourth and fifth cohort 63 and 57 percent aspirants were benefited from the scheme

22 SFAFDB, IPR of First Trimester Report submitted to UGC, 2013.

23 SFAFDB data sheet.


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respectively. Apart from the first two cohorts the number of applicants declined forhigher education (Table 28).

Table 28: Proportion of Students at HSL and HLCohort % of HE % of HSS

First 82.3 17.7

Second 100.0 0.0

Third 41.3 58.7

Forth 45.5 54.5

Fifth 48.9 51.1

Grand Total 48.3 51.7

Source: Calculation based on SFAFDB data sheet.

On an average female candidates (43%) are less than male (53%)24 which is always lowin both the level of education from the beginning; however, proportion of female hasincreased remarkably during last five years (Table 29) indicating gradual womenempowerment. Variation in enrolment in any educational institutions and applying forscholarship by fewer women may be one of the major causes behind to be low womencandidate for scholarship.

Table 29: Proportion of Students by Level, Gender and Cohort (in %)

Gender First Second Third Forth FifthGrandTotal

HEMale 65.8 57.9 64.2 62.0 52.5 57.0

Female 34.2 42.1 35.8 38.0 47.5 43.0

HSS

Male 71.4 56.8 55.2 57.7 56.9

Female 28.6 43.2 44.8 42.3 43.1

Source: Calculation based on SFAFDB data sheet.

From the second year, the program was implemented in all the 75 districts of thecountry though the selected candidates were not equal in the districts. It ranges from '0'

24 Simply we can assume that the major cause of low proportion of female beneficiaries may be due tolow education opportunity for them which directly impact on pass out rates that is low among female(Economic Survey 2013) being equal number of students by gender at community and institutionalschool where the program focus.


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in Palpa to 1,779 (8.8% of the total) in Sindhuli (Annex-4) while analyzing the grandtotal contestant till fifth cohort by district. The top 10 districts alone occupy more thanhalf where top 5 districts account more than one third share (Table 2.4) reflectinguneven distribution of the applicant in one district to another. From the informationavailable their proportion is not linked with the population size of the district butgenerally linked with proximity and poverty level of the district (Table 30) though itmay not be true in all cases.

Table 30: Share of Students in Top 10 Districts in Relation to Poverty LevelSN District Candidates* Percentage Rate of Poverty (2006)**1 Sindhuli 1,779 8.8 60.3

2 Kalikot 1,477 7.3 56.8

3 Dailekh 1,392 6.8 51.6

4 Bajhang 1,254 6.2 48.2

5 Bajura 1,090 5.4 47.3

6 Rukum 1,054 5.2 49.1

7 Rolpa 753 3.7 58.7

8 Kailali 602 3.0 50.4

9 Udayapur 550 2.7 50.8

10 Doti 531 2.6 46.4

Total 10,482 51.6

Source: * SFAFDB ** CBS, Nepalma Garibiko Laghuchhetra Anuman, 2006 (BS2063)

The scheme has covered both the rural and urban areas25 of entire country without anydiscrimination. But almost all (95%) applicants are from rural areas where 83 percentpopulation is living. Just about three percent are from urban areas where 17 percentpopulation is residing. As this program is directly focus to the poor students, thepoverty level is high in rural areas (27.4) as compared to the urban areas (15.5) (CBS,2011a) that helps to justify the proportion of applicants from village and municipality.Nearly two percent student record regarding their place of residence whether it is VDCor municipality was not found as the Board has not full database of the early batcheswhen the Board was getting PMT administration done through RBBL and its sub-consultants.

Table 31: Students by VDC and Municipality

25 Population living in Municipal areas is considered urban population from censuses and surveys.


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Geographical

Divisions

VDC Municipality Not Stated

Male FemaleBothSex Male Female Both Sex Male Female

BothSex

EDR

Mountain 19.0 18.7 18.9 15.3 18.4 16.5 6.3 22.2 12.0

Hill 60.5 67.9 64.2 25.4 36.8 29.9 46.9 50.0 48.0

Terai 20.5 13.4 17.0 59.3 44.7 53.6 46.9 27.8 40.0

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

CDR

Mountain 5.3 5.2 5.3 2.6 3.1 2.9 9.3 3.2 6.8

Hill 75.1 83.6 79.3 75.4 82.4 79.5 62.8 93.5 75.7

Terai 19.5 11.2 15.4 21.9 14.5 17.6 27.9 3.2 17.6

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

WDR

Mountain 1.7 2.1 1.9

Hill 67.1 80.4 73.6 47.1 87.5 60.0 40.6 51.7 45.9

Terai 31.2 17.4 24.5 52.9 12.5 40.0 59.4 48.3 54.1

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

MWDR

Mountain 35.3 27.3 32.1

Hill 56.1 63.1 58.9 33.3 32.6 32.9 63.1 54.5 59.6

Terai 8.6 9.6 9.0 66.7 67.4 67.1 36.9 45.5 40.4

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

FWDR

Mountain 58.0 51.7 55.7

Hill 30.3 33.0 31.3 29.2 19.0 24.4 52.7 32.5 44.2

Terai 11.8 15.3 13.1 70.8 81.0 75.6 47.3 67.5 55.8

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Grand Total(N)

11047 8291 19338 291 306 597 277 162 389

The share of students those who applied for scholarship differs by place of residence,development regions and ecological zones. In urban places share of female applicant ishigh (48.7 male and 51.3 female) while in rural area 57 percent are male and 43 percent


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are female (Table 32). This may be mainly due to the wide gender differences oneducational opportunities in rural areas on the one and females preferred less to applyfor outside benefits on the other.

Table 32: Students by Development Region and Rural Urban Residence

Regions Village Municipality Not Stated

Male FemaleBothSex Male Female Both Sex Male Female

BothSex

EDR 10.6 13.7 12 20.3 12.4 16.2 14.1 11.1 10.6

CDR 15.8 20.8 18 39.2 52 45.7 18.9 19.1 19

WDR 9 11.3 10 5.8 2.6 4.2 14.1 17.9 15.7

MWDR 37 33 35.3 12.4 14.1 13.2 28.6 27.2 28

FWDR 27.5 21.1 24.8 22.3 19 20.6 24.2 24.7 24.4

The regions where the program was initiated first (MWDR and FWDR) secured highernumber of students as aspirant among the development regions in rural areas. But thecase is different in municipal areas where CDR has occupy large share (46%) amongthe regions while FWDR stood at second position securing less than half (21%).Likewise, share of not reported case whether it is village or municipality is high in boththe regions first kick off the program (Table 33).

Table 33: Students by Development Region, Rural Urban Residence and SexVillage Municipality Not Stated

Male Female Male Female Male FemaleEDR 50.8 49.2 60.8 39.2 64 36

CDR 50.4 49.6 41.8 58.2 58.1 41.9

WDR 51.4 48.6 68 32 52.5 47.5

MWDR 59.9 40.1 45.6 54.4 59.6 40.4

FWDR 63.4 36.6 52.8 47.2 57.9 42.1

Total 57.1 42.9 48.7 51.3 58.4 41.6

Women empowerment is one of the hot debated issues of current development agendas.Education is the major factors contributing to the empowerment process. But the levelof education of women in comparison to their male counterparts is poor only because oftheir access on education equally to men. Among the applicant form the villages in allthe development regions share of female is low compared to male. The difference isvery low or it is neck to neck in the three development regions from the east butremarkably high in the two regions from the west. But the case is different in themunicipal areas where share of female is high in two regions (CDR and WDR).


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Contrary to this female are less than half of the male in WDR and less by 21 percentagepoints in EDR (Table 33). Not only are the economic cause, females in Nepal furtherdeprived from access on education because of our traditional socio-cultural settingespecially rooted in rural and remote areas.

Analyzing the information in the ecological zones share of rural aspirant in terai (bothmale and female) is very low in comparison to the population size though not muchvariation by gender. Contestants from municipal areas are only four percent inmountain (Table 34), not because of being economically sound but because of low levelof urban population in this region.26

Table 34: Students by Ecological Zone and Rural-Urban Residence

EcologicalZones

Village Municipality Not Stated

Male FemaleBothSex Male Female

BothSex Male Female

BothSex

Mountain 32.0 23.8 28.5 4.1 3.9 4.0 2.6 3.1 2.8

Hill 53.5 63.6 57.8 48.1 57.8 53.1 55.1 55.6 55.3

Terai 14.5 12.6 13.7 47.8 38.2 42.9 42.3 41.4 41.9

Table 35 also further clearly reflects the gender discrimination in the rural area in allthe ecological zones where the ratio of applicant is nearly 60:40 though proportion ofwomen population in the area is high than men. Contrary to this, share of women inmunicipal areas is equal in mountain, more than man in hill where it is less in Teraireflecting women even in municipality areas in Terai region are deprived fromeducational opportunities as a result of the heavily rooted socio-cultural situation in theregion.Table 35: Students by Ecological Zone and Rural-Urban Residence

EcologicalZones

Village Municipality Not StatedMale Female Male Female Male Female

Mountain 64.2 35.8 50.0 50.0 54.5 45.5

Hill 52.8 47.2 44.2 55.8 58.1 41.9

Terai 60.6 39.4 54.3 45.7 58.9 41.1

Total 57.1 42.9 48.7 51.3 58.4 41.6

Caste/EthnicityOf the total candidate participated in a competition for scholarship provided by theSFAS targeted to the poor and brilliant students deprived from higher education causedby economic hardship more than half (56%) are from so-called upper caste group while29 percent are from disadvantaged Janajati and 14 percent from so-called dalits.

26 Only two municipalities out of 58 are in this zone.


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Among the aspirant by development region so-called upper castes secure more sharesin three western development regions where disadvantaged Janajiti are high from EDRand CDR (Table 36). Looking the situation in ecological zone so-called upper castesecured high proportion from 40.6 percent in Terai to 72.2 percent in mountain.Disadvantaged Janajiti comes in the second place except mountain where lower castestood in second place. This information reflects that so called upper caste stilldominates to other caste though the share of this caste group is not as much as the sharein aspirant. So-called upper caste candidate take up 56 percent out of the total applicantfrom VDC level while disadvantaged Janajati place in second position but neck to neckwith so- called upper caste.

Table 36: Proportions of Students by Caste/Ethnicity27

RegionSo called

Upper CasteDisadvantage

d JanajatiSo called

Lower Caste OthersEDR

Mountain 27.3 61.1 9.8 1.7

Hill 39.2 47.5 12.2 1.2

Terai 37.3 37.3 20.7 4.7

Total 36.6 48.1 13.3 2.0

CDR

Mountain 34.7 56.1 8.7 0.5

Hill 31.4 58.7 9.3 0.6

Terai 34.9 29.2 30.9 5.0

Total 32.1 54.0 12.6 1.3

WDR

Mountain 5.4 62.2 27.0 5.4

Hill 50.6 30.8 17.0 1.7

Terai 38.4 25.3 31.1 5.2

Total 46.6 29.9 20.8 2.7

MWDR

Mountain 77.9 9.0 12.1 1.0

Hill 64.3 21.9 12.9 0.9

27 Caste/ethnic groups used in this study is presented in Annex-5.


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Terai 39.6 49.9 9.3 1.3

Total 66.0 20.8 12.3 1.0

FWDR

Mountain 79.0 3.3 14.6 3.1

Hill 70.6 11.5 15.6 2.4

Terai 45.5 36.8 16.1 1.6

Total 71.2 11.0 15.1 2.6

VDC/Municipality

VDC 55.9 28.5 14.1 1.5

Municipality 41.7 40.7 14.1 3.5

Grand Total(%) 55.4

28.8 14.0 1.7

Grand Total(N)

11,267 5,859 2,850 350

The NLSS has categorized Nepali people into five different levels known byconsumption quintile based on the level of consumption (from poorest to the richest).While determining the criteria of selection of beneficiaries the SFAFDB has excludedthe fourth and fifth quintile from competition. Table 37 clearly reflects that as the levelof income increases proportion of applicant declines sharply. This information provesthat the methods (PMT scoring) adopted by the board for selection of the beneficiariesfrom crowd of aspirants is more reliable and practical to identify actual poor/needypeople. Only small proportion (7.8%) students had applied from third quintile in thefifth batch though the board call application from all the students either studying inclass 10 or 12. However, there are some unbelievable inconsistencies, may because ofdata management problem of the BoardTable 37: Candidates by Cohort and Level of Consumption Quintile

Cohort

Consumption Quintile

TotalFirst Second Third

% % % N

First 88.1 11.9 - 277

Second 0.2 99.8 - 404


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Third 82.9 17.1 - 3000

Forth 66.9 33.1 - 5500

Fifth 67.2 25.0 7.8 11145

Total 68.4 27.3 4.3 20326


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Annex-12

Assessment of Student Financial Scheme in Nepal

Access to education is near to the ground among the economically poor and sociallybackward communities mainly due to their inability to invest on education as it isbecoming expensive over the years. However, budget amount on education isincreasing annually aiming to provide education for all to meet the MillenniumDevelopment Goal (MDG) but the pace of educational development is very slowindicating very hard to meet the MDG on education. Those who want to send theirchildren to school could not select the best institution as their will. This constraintsdemonstrate high gap on education between haves and haves not. Ultimately thechildren of poor family are forced to leave school (whatever may be their talent), andmove around foreign land with the hope of better earning.With the view to capture the drained talent Nepal Government had established a pro-poor scheme known by Student Financial Assistance Fund Development Board in2006. The SFAS is running by the autonomous SFAFDB. Till date 14583 poor studentsstudying at higher secondary level and bachelor level were benefited from 75 districtsof the country. However, this is the learning period of the scheme; it achieved 175percent of the target reflecting good performance. Number of beneficiaries increaseddrastically year after year and exceeds the target (Table 1.6). SFAFDB has developed ascientific method to calculate the score of the aspirant known by PMT method. It wasdeveloped by the board based on the indicators to calculate level of poverty by NepalLiving Standard Survey 2003/04.

This chapter tries to undertake SWOT analysis of the scheme highlighting the strengthand opportunities on the one hand and indicating the weakness and threats on the other.The assessment will be based on the information available from the board and survey aswell as interaction with students and other stakeholders.

StrengthDuring the short period of time, SFAFDB has acquired a lot of improvements ineducational status of the poor and talent students in rural and remote Nepal throughfinancial assistance disbursement. Among them establishment of an autonomousinstitution, establishment of independent office and experienced human resources,cordial relation with concerned stakeholders, development of more scientific method ofbeneficiaries' selection known as PMT, publication and distribution of necessaryinformation related to the scheme are considered as remarkable strengths.

To ensure access of poor or low income group students to higher secondary and highereducation, Nepal government has initiated Student Financial Assistance Scheme(SFAS). The scheme is managed by an autonomous board named Student FinancialAssistance Fund Development Board (SFAFDB) governed by nine membersrepresenting different sectors. The Chairperson of University Grant Commission(UGC) is ex-officio chairman and Executive Director of the scheme is the member-secretary of the board. It is a pioneering step to support the poor and meritious studentswho were unable to continue their study without outside financial support.


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A separate office was set up to implement its pro-poor activities targeted to meet itsgoal headed by an Executive Director. The main function of the office is to execute itsPMT activities as directed by the board. Now it has one Deputy Executive Directorwho has been acting as Executive Director since last 3.5 years with its 3 experiencedofficers including three junior level human resources to execute the assigned task whereit has sufficient physical facilities in present context. From fourth cohort, scoring of thecollected PMT forms, SLC and SHEB result verification of the applicants, and samplebased field verification of preliminary list students were done by the Board itself takinglimited help from outside consultants as and when needed following publicprocurement procedure. The SAFS has demonstrated its ability covering more studentsthan its target within the same budget line. Overall incremental operation cost (IOC) ofSFAFDB has been decreased remarkably over the years that prove PMT method andBoard's cost effectiveness.

Board has established cordial coordination with concerned stakeholders such as OCE,HSEB, CTEVT, DOE, EVENT, RBBL, and others. As a consequence, Office of theController of Examination (OCE) and Higher Secondary Education Board (HSEB)provided recently updated list of academic institutions (disaggregating community andinstitutional/private ones). They also supplied e-copy results of SLC and HSEB (12class) needed to the scheme.

Board has established its website based online reporting system for each RBBLbranches. It has managed separate username and passwords to all RBBL branches.Board system provides final list students basic information so the feeder branches ofRBBL having username and password can promptly track student information on thebasis of respective students' registration numbers then report about the student bond,enrollment proof and their citizenship certificate could be submitted in the system.

As per the request of SFAFDB, RBBL developed institutional E-banking system tochannel fund from SFAFDB account to students’ individual account in intra-bankingsystem. Using E-banking system, SFAFDB has established direct cash transfer systemto its beneficiaries' individual bank accounts through the use of first class financialinstitution (commercial bank). Under E-banking system the Board has been directlytransferring cash (FA grant) in all 148 RBBL branches which cover 64 districts, aftertransfer the system automatically prints disbursement report/receipt indicating accountholders account information and the deposited amount. On request, students can getautomated SMS service from RBBL regarding the FA deposit. The system has reducedboth time and cost regarding disbursement.

Board has developed its website based online PMT software for scoring which has beenused by other agencies. The system will automatically consolidate all the data enteredto the system then quintile, cast, gender, category, region etc. wise welfare ranking listswill be generated. The system allows re-scoring after individual home visit/verification,result verification; other post selection periodic updates like: disbursement, academic


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progress, school transfer, dropouts and graduation can be linked in the system. ThePMT software developed by the board has recognized by various private colleges fromdifferent parts of the country.

In addition to website (sfafdb.edu.np) SFAFDB has also developed InformationBooklet and updated it regularly. It has been using Nepal Telecom's automatedInteractive Voice Response (IVR) system through its all kinds of telephones. SFAFDBhave been disseminating final results throughout the country dialing 1640. Moreover, ithas a system to send hard copy of the final results to the respective schools incoordination of DEOs/RCs. Reducing administrative costs without compromising thequality aspects of scholarship and FA management is another issue.

WeaknessesThe SFAFDB has acquired a significant strength within the last five years period, butstill is suffering from various weaknesses such as scarcity of necessary technicalmanpower, budget constraint for effective field verification, inconsistentimplementation procedure, and low level of stakeholder’s awareness. Because of theseproblems the board has not been functioning effectively as the expected level.The existing manpower is not sufficient and at the same time some of the manpowerhas no knowledge to execute additional activities besides managing scholarshipprogram. But could not offer due attention to other activities – Work Study Programand Student Loan though both of the program were attractive to drag the poor studentsat educational institution at higher level as well as demanded by the beneficiaries.

The board has its limited budget from which it could not meet the need of all aspirantthough progress rate found more than target. On the other due to limited budget andmanpower with the board it could not cover all eligible students by verification processthat invites few criticisms on its selection process as some of the students having goodeconomic condition may also be selected based on their false information.

The activities like document verification, ACF preparation and monitoring (field anddocument) has been taken by the board after contractual rearrangement. But due to theconstraint of human resource with adequate computer (Spreadsheet) skill the tasks hastaken long time. As a result FA disbursement was affected badly in the past years.Finally, overall performance of the board is also not satisfactory in absence of adequatehuman resources with necessary technical knowledge.

In the second and third cohort major task of student selection and FA distribution washanded over to the Rastriya Banijya Bank appointing as a Fund Administrator. Thebank also appointed private firms/NGOs as sub-contractor to perform certain assignedtask – from PMT form publication to finalization of the beneficiaries list andmonitoring the institutions and students. But the Fund Administrator could not mobilizeNGOs in well manner. As a result the board was criticized a lot from differentstakeholders.


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Likewise, the fund administrator has agreed to open account at zero balance only in thecase of SFAS beneficiaries in all its outlets. But in practice, some of the branches aretaking NRs.100.00 to NRs.2000.00 to open account. While talking with the manager ofsome branches in this issue justified that the bank could not provide any proof (bankBoucher, cheque book) to the Clint while opening account on zero balance. In thissituation when student comes to check his/her balance they do not know/remembertheir account number. In this case bank has face a problem and needs to invest a lot oftime to find out the account of the student and delayed the process to some extent. Sothey have started to provide proof (brochure and cheque book) depositing minimum100 rupees.

Selected students are required to submit copy of Nepali Citizenship Certificate, StudentBond stating individual bank account number, and academic institution certified proofof admission to the board on final selection. In practice it is found that while somestudents submit incomplete documents and some others leave the documents at localbranches of the banks (RBBL and NBL), some branches forward the documents withdelay. For such reasons, SFAFDB was not able to enroll some students on the one handand on the other hand, students did not receive their FA in time due to delay onreceiving documents by the board, which has been the major criticism by studentsfrom all parts of the nation.

OpportunitiesSFAFDB had not only suffered from various weaknesses but also had gain a number ofopportunities to strengthen the organizational capability, change the feeling of thesociety towards the government, and improve the awareness and educational level ofthe poor.Besides internal monitoring from the board itself, some independent institutions haveconducted monitoring and follow up of SFAS beneficiaries, and submitted their reports.The reports advocated for the sustainability of the SFAS and appreciated the PMTbased poverty targeting.

SFAS is being established as more scientific model28 to select the poorer from the poorand provide financial assistance to them. If we can internalize it, continuation of thescheme after the termination of SHEP will be assured though it is a crucial issue. TheSFAFDB gradually is growing up as a pioneering and specialized agency for thescientific and practical evaluation method using PMT that helps to select the real poorwithout any preferential treatment in Nepal. So sustainability of the board for thecontinuation of SFAS after the termination SHEP is must to utilize its expertise for thebenefit of the nation.

Stakeholder’s forum has been formed. Practice of presenting yearly progress in theforum meeting and getting policy instructions from the meeting has started.

28 The PMT model is based on different variables related to poverty calculation where chance ofmanipulation from the central level in the process of selection is rare.


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For sustainability of SFAS, SFAFDB has organized a Fund and formed a sevenmembers Sub-Committee assuring representation of industrialists and social workersheaded by a SFAFDB member as coordinator with the aim to increase SFAF fund inorder to sustain SFAS, and to bring fund donation and management under corporatesocial responsibility. The sub-committee has started its activities. To raise the fundmore effectively the committee has been lobbying for provisions of tax exemption inthe amount of donation in SFAF.

Board has been lobbying for the formation and execution of one door policy onscholarship distribution to check duplication of financial assistances and scholarships inNepal. The board developed as a specialized and professional institution for PMTscoring method. Using its PMT expertise, SFAFDB has started to generate fund whichcan be used to sustain SFAFDB system during the project holiday period before theexecution of HERP. Trust fund can further be generated though the use of Board's PMTexpertise.

The much demanded activity of the board – 'Work Study Provision' can be revitalizedthrough bringing it more effectively into the system. This provision not only helps tothe students to continue their study but also reduces the burden of the nation as theeligible job seekers reduce. Likewise, employers also will be benefited receiving honesthuman resources at reasonable wage rate only signing MOU with probableentrepreneurs and their networks. Improving SFAFB website and its capacity providingeasy access of needy stakeholders on roster of eligible employees and employers can behelpful in meeting such goals.

Though SHEP has dropped student loan provision due to some constraint at that timebut demand of this provision by the needy students is increasing. In this context it canexecute in coordination of financial institutions introducing practical Student LoanPolicy and its operational guideline.

Student finance scheme has encouraged people of all age and status into education, e.g.the case of a housewife taking up studies along with her son, shows SFAS helpingempower women in rural areas to make their dream of education come to reality, whichwould have otherwise remained a dream for many poor who were in their householdduty and unable to study due to financial problem. The scheme was praised by manypoor as it uplifted their confident level.

ThreatsThe role of state would be more positive and constructive in social development. Nepalgovernment has adopted various education policies under its broader objective'education for all'. To make access of female, poor and deprived communities oneducation it has introduced various scholarship programs through its own and outsidesources. Among them SFAS is one running effectively but has various threats whileperforming its activities to achieve the goal.


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The program is running with the financial support of World Bank (WB) by anautonomous institution under the policy and guidance of Ministry of Education. In thissituation the board is principally obliged to follow agreed procurement system with WBbut it is challenged by the authorities from Office of the Auditor General (OAG) thathinders smooth functioning of the activities on the one hand and increases the workloadof the staffs at the board on the other only because of the dual system.

As the scheme is designed to cover poor and disadvantage students. The poverty anddisadvantaged population are highly concentrated in rural and remote areas whereaccess on communication is also very limited. Thus large number of eligible studentsmay not get information about the activities of SFAS only from present disseminationsystem. It demands wider improvement in the system that may not be possible withincurrent budget line.

PMT can rank the applicants on the basis of their welfare score so getting application ofall interested ones would address the limitation regarding the exclusion of poor studentsfrom institutional schools.

Strong verification and monitoring process could increase the image of theimplementing organization but it is not possible from the existing limited humanresources and resources. As a consequence of weak verification SFAS has to acceptsome criticisms as some non-poor also entered in this net.

In absence of timely fund release to the SHEP from ministry was one of the majorreasons being delay in fund disbursement to the beneficiaries that raised question on thefunctioning of the board. At the same time the NBL through RBBL/Fund Administratordid not prioritize the program is another cause to be delay in FA disbursement to theindividual accounts of the beneficiaries. There is no sign of improvement in both thesituation in near future too.

Some students are receiving double scholarship where some poor are excluded only dueto lack of coordination among the schemes and other concerned institutions involvingon scholarship programme. Coordination between concerned institutions especiallyunder Nepal Government can reduce duplication in scholarship management.

The challenge is to select right aspirants by adopting right method in right time toprovide adequate scholarship to the beneficiaries in an efficient, timely and reliableway either through one door system or through integrated system is the prime issue toassure the access or right of the economically poor students in education. But in presentsocio-political context it is not possible as expected.

Financial institution do not prioritize education loan to the students of non-technicalsubject where SFAS has not cover technical education yet. As a consequence executionof 'Education Loan' would not be possible in the present situation.


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Interest and skill of the students and requirements of the employers did not match inmany cases as they are from non-technical background. There is no provision of skilldevelopment and training provision under SFAS as per the requirement of theemployers. It needs a separate management with huge budget which is not possiblewithout any support from outside. As a result it is very difficult to execute 'Work StudyProvision' though guided by policy and paying attention by students and honored byemployers.

Sustainability of the board depends on internalization of PMT system and SFASsuccess by the national system. But till date government initiatives are not visible inthis direction. As government did not own it, the program will be discontinue aftertermination of support from outside that heats a lot in the mind of the poor people.

On the basis of above discussions and existing gaps in managing scholarships and FAsin Nepal, overall administration in this regard should be rearranged to assure the futureof nation and its citizen.


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Annex-13

Student Financial Assistant Fund DevelopmentJhamsikhel, Lalitapur, Nepal

Terms of Reference and Scope of the servicesStudy on pro-poor targeting of students and scholarship distribution under SHEP

Terms of Reference (TOR) for a Short Term Individual Consultant

I Background

1. Student Financial Assistance Fund Development Board (SFAFDB), anautonomous government institution, has been implementing Student FinancialAssistance Scheme (SFAS) - one of the components of SHEP (2007-2014)financed through the grant support of World Bank(WB).The objective of SFASis to provide financial assistance to poor meritorious students that meet theirneeds for pursuing Higher Secondary and Higher Education by using ProxyMeans Testing(PMT) to identify needy students.

2. The Board has Educational Management Information System (EMIS) which hasinformation on all cohorts of students that applied for the scholarshipdisaggregated by gender, ethnicity, location, course of study and economicstrata(quintiles).The EMIS can be used effectively to improve decision-makingin resource allocation, risk management and operational control to enhancepolicy-making, monitoring and evaluations. An independent review of theproject accomplishment including the targeting and outreach of the program iscritical for further investment in this area.

II Objective

3. The first objective of the study is to assist SFAFDB to assess the targeting andoutreach of the program, and status of students who received the scholarship.The second objective is to document the progress made by SFAFDB inselecting students using web based PMT method in selection of students anddisbursement of scholarship into students’ account using E-banking.

III Scope of work

4. Analyze and prepare summary report based on SFAFDB provided last 5 yearsinformation regarding information dissemination, Proxy Means Testing (PMT)form distribution/collection, scoring, household (HH) verification, rescoring,relisting, appeals, preliminary and final list generation and dissemination,student enrollment and disbursement, monitoring and follow-up of thebeneficiaries, challenges faced during the implementation and the resolution,and use of ICT in different stages of student selection including disbursementof scholarship. The information should also cover student selection by regions,types of students (boys, girls, ethnic groups) and its trends in 5 years.

5. Prepare a report by analyzing data collected through the agreed questionnairefrom (Annex-B) by monitors of SFAFDB that relate to assessing targeting andoutreach of the program, and the status of students who received scholarship.


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6. Prepare a comprehensive report consolidating the information from the deskstudy and the student survey outlining strengths and weaknesses that relate todifferent stages of student selection including disbursement of scholarship basedon EMIS of SFAFFDB.

IV Brief Methodology

7. The study will be based on: (i) desk review of the documentscollected/compiled by the SFAFDB during the implementation of thecomponent of the project in the last 6 years; (ii) case studies of randomlyselected at least 800 students - 200 girls and 200 boys both from the highersecondary and higher education; (iii) filed visit to discuss with stakeholders willalso be done.

8. The students will be asked short and simple questions that relate to their status,assessment of targeting and outreach; the questions will be jointly developed bySFAFDB and the World Bank task team. SFAFDB will collect studentinformation through phone contacts and field visits; SFAFDB in-house staffwill be engaged in the data collection.

9. Simultaneously, SFAFDB will also prepare a combined list of the beneficiarystudents (available in the office) segregated by gender both in higher secondaryand bachelor levels; four sets of students list will be prepared - 200 studentsfrom each of the lists will be randomly selected from the prepared list. Then, theinformation of at least 400 students covering all lists will be screened from theinformation collected. Data thus collected will be analyzed. The consultant willwork closely with the SFAFDB data collection team to compile the collecteddata, analyze them and prepare the report.

10. To the extent possible the report will also cover the following information/features:

i) Analysis of the SLC and HSEB results (pass/fail) linkage with PMTscores

ii) Caste/ethnic wise,iii) Gender wise,iv) Geographical region wise,v) Quintile wise,vi) Development region wise,vii) Category wise,viii) District wise,ix) Banks (RBBL/NBL) wise beneficiaries,x) Enrollment trend of beneficiaries in class 12 including bachelor

second and third years,xi) Analysis of drop-outs trends, andxii) Admitted faculty wise beneficiaries.

V Tasks / Outputs

11. Prepare a brief methodology of study / review including student data collection,randomly selected students’ list finalization, and field visit plan in coordinationwith SFAFDB: by October 18, 2013.


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12. Submit Draft Report: by December 31, 2013.13. Receive SFAFDB and WB comments: by January 06, 201414. Submit final Report: by January 10, 2014.VI Consultant’s Qualifications and experience15. VAT or PAN registered individual at least having masters' degree with

substantial analytical, statistical and writing expertise will be the basis forselection. The consultant should also have good understanding about Nepal’shigher education and its financing system.

VII Others16. Total number of contract days: 20 working days within the contract period of

October/November/December, 2013 and January, 2014.

17. SFAFDB will be responsible for administering this contract along withassociated travel expenses outside Kathmandu Valley.

18. Facilities to be provided by SFAFDB. In addition to the contract amount(service fee), regular inputs, and other needy information (development regionwise, ecological region wise, category wise, gender wise, ethnic wise, cohort-wise student and beneficiary data, latest list of community secondary and highersecondary schools, list of RBBL/NBL branches, RBBL on line reportingsystem, PMT indicators and their option wise weight, ethnic-wise SLC passpercentage, ilaka-wise poverty rate) as well will also be provided by SFAFDB.

Thanks.