Govt working on loan complaints by students

 
The Ministry of Education and Vocational Training is finalising procedures to review the Education Fund Act, 2001 and that of High Education Students Loans Board (HESLB) law.

The move is aimed at eliminating hitches that have occasioned loan eligibility to thousands of qualified students. It is also hoped to enable the sector determine and identify other alternative fund sources.

Philipo Mulugo deputy minister for education told the national assembly yesterday that preparations are in the final stages of implementation and that the drafted law will be submitted in the House later this year.

In an effort to ensure that all qualified students get access to loans, Mulugo said, the ministry designed a special task force to identify other key-alternative sources of funds to finance students

“The task force has already submitted its report and the government has started working on the recommendations,” he said.

The government had allocated a total of 326.0bn/- during 2012/2013 financial year to be offered as loans to some 95,902 eligible students including first year students. That amount is far more than 56.1bn/- allocated by the government during 2005/2006 to cover only 42,729 students.

“Such recorded increase indicates that the government has the political will and commitment to ensure all qualified students secure loans for their high education,” he stressed

Mulugo’s reaction follows a question by Rashid Abdallah (Tumbe, CUF) who wanted an explanation on initiatives undertaken by the government to grant loans to all qualified students.

The legislator stressed that there were several qualified students who failed to obtain loans and thus limited their fundamental right to education

The deputy minister said during the 2012/2013 education year HESLB accepted 37,315 proposals and after evaluation at least 34,140 applicants proved qualified for the loans. But it was unfortunate that only 30,319 approximately to 88.9 percent of all applicants secured loans leaving 3,821 applicants (about 11.1 percent) of qualified students hanging

The minister faulted the budget deficit and government priorities as the reason behind the failures to issue loans to the qualified students.