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Abstract

South African research has found tertiary education to have the highest rate of return amongst levels of education. Measures of effectiveness of the large allocation by government are a crucial area of study relatively untapped. Income levels relative to level of education were found to have significant correlation with probability of entering into an income bracket of above R8 000 being 2.3 times higher with a tertiary degree. A sample of Rhodes University NSFAS funded students, analysed within the framework of a cost benefit equation, indicated the positive effect of government funding on rates of return.

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