New students in despair as government fails to issue loans

Sep 17, 2024, 12:39 PM
New students in despair as government fails to issue loans

The government has failed to provide funding for recipients of student loans to begin overseas higher education in the September/October intake.

A total of 500 student loans were announced this year, but the government later decided to issue loans to 1,709 eligible applicants.

However, some students have been unable to travel overseas for their education while other students were funded by family and well-wishers to begin their studies.

A student who went to Malaysia for September intake told Adhadhu that they travelled with the financial assistance of family.

"I requested for the agreement on August 26. I sent three emails to the Higher Education Ministry. They acknowledged receiving the emails. But they still haven't sent the agreement. My family arranged the money for course fees, travelling to Malaysia and living expenses there," the student said.

The student added that they would not have been able to begin studies when the semester starts on September 23 if they had depended on the Higher Education Ministry and waited for the loan.

They noted that the family would face a great financial burden if they can't recover the money to pay off the debt.

Another student told Adhadhu that some students connected to government officials were able to arrange loans and leave to the universities.

Adhadhu also understands that some students are trying to raise money by obtaining loans in other ways to leave for their universities.

The Ministry of Higher Education issues student loans for new students through a lengthy process from the Finance Ministry.

Adhadhu has learned from various sources that the Higher Education Ministry is facing difficulties in arranging funds for new students and completing the process.

The Finance Ministry issues funds to current students after the university sends a letter to the Higher Education Ministry. There are difficulties in issuing those funds as well.

An official of the Higher Education Ministry told Adhadhu that there were delays in issuing the money to the new students, but the work was ongoing.

The official said they were working with the finance ministry to prioritize the disbursement of funds to students.

"The disbursmenent of funds for loans is based on our cash flow. So when we raise the issue, sometimes the finance ministry arranges it somehow. They try to clear everything we send them," the official said.

The official said there are some delays in the disbursement of loans to new students due to the length of the process but there are no issues in funds for current students.

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