The Edition

Latest

Govt to slash loan administration fee to 1 percent

Mariyam Malsa
03 October 2019, MVT 22:36
Maldives National University (MNU) Graduation 2019. PHOTO: PRESIDENT'S OFFICE
Mariyam Malsa
03 October 2019, MVT 22:36

The government's Strategic Action Plan (SAP) proposed to reduce loan administrative fees on higher education loans to one percent.

As per the SAP, interest rates will be reduced from six to one percent by the year 2021. The fee is an overall administrative charge levied on the total cost incurred by each student.

Reducing interest rates and increasing repayment periods on higher education loans was included among the government's 100-day agenda.

In late 2018, the state cut interest rates on loans from five to three percent while repayment periods were extended by 25 percent.

The aforementioned alterations are intended to strengthen higher education financing mechanisms to ensure greater accessibility to quality education.

In order to reach the goal, the state will also amend the loan scheme to include a specific category for economically disadvantaged students and cover higher education programmes from a wider range of countries.

Furthermore, the government will introduce separate loan schemes for students undergoing medicine or health-related courses from reputable institutions and for training students in nontraditional areas.

By 2023, the government aims to provide at least 25,000 students with the opportunity to study under a free undergraduate degree scheme, award higher education scholarships to a minimum of 1000 students and enable at least 2500 students to take out loans to pursue tertiary education.

The SAP outlines developmental targets and priorities for five years from 2019 to 2023.

The plan is based on five priority areas; Blue Economy outlining economic priorities and how it will be delivered in a sustainable manner; Caring State outlining priorities relevant to social progress; Dignified Families defining means to address discrimination and prioritise neglected persons; “Jazeera Dhiriulhun” describing priorities related to community infrastructure and services; and Good Governance representing key governance reforms.

MORE ON NEWS