Minister of Higher Education, Vocational Training and Skills Development Dr. Ali Haidar Ahmed has stated that only 40% of students are repaying the loans provided by the government for higher education. The Minister said this while answering a question posed by MP Ibrahim Hussain of Fuvahmulah South constituency in today’s parliament session, regarding whether student loans are being repaid regularly.
The Minister of Higher Education, Vocational Training and Skills Development highlighted that very few students who receive loans are repaying them regularly. He stated that only 40% of students are repaying the loans after completing their studies. The Minister emphasized that this money is owed to the state and said that they will soon decide on measures to recover these funds.
“As of April this year, 157 million rufiyaa has been disbursed as loans. There are significant issues with repayment. They are not being repaid properly and on time,” said Dr. Ali Haidar Ahmed, Minister of Higher Education, Vocational Training and Skills Development. The state provides loans every year for higher education and training. Repayment of these loans is supposed to begin 6 months after completing studies.
President Dr. Mohamed Muizzu has decided to make the loans for higher education compliant with Islamic principles. Along with this, the President has decided to completely remove the 1% administrative fee that was being charged with the loans. Furthermore, it has been decided not to charge any additional amount beyond the loan amount disbursed.
In addition, the President has instructed to adjust the loan amounts of previous borrowers by deducting the administrative fee from the remaining balance to be paid. Last April, a registry was created for Maldivian students studying abroad, in addition to those studying on government scholarships and loans. The Ministry of Higher Education, Vocational Training and Skills Development has revealed that by the end of last December, more than 2,000 students had registered in this database. This includes 915 male students and 1,201 female students.
The Student Loan Scheme for students studying abroad allows students to study in any country of their choice. These loans are provided for studies in fields that are most needed in the Maldives.
