Over MVR 1.2 billion disbursed in student loans over two years

More than MVR 1.2 billion has been disbursed under the student loan scheme over the past two years, the Ministry of Higher Education said today.

According to the ministry, a total of MVR 1.24 billion was disbursed in 2024 and 2025. During this period, student loans were issued to 1,438 students, including 568 males and 749 females.

The ministry said 1,211 students graduated during the two-year period. Of them, 670 were men and 541 were women.

Last year alone, MVR 548.16 million was disbursed in student loans to 596 students, including 237 males and 359 females. In the same year, 660 students graduated, including 368 females and 292 males.

Currently, 1,740 students are studying under the student loan scheme in the Maldives and across 36 countries abroad. This includes 1,072 female students and 668 male students.

However, failure to repay student loans has become a growing concern.

According to the latest audit of the Ministry of Higher Education for 2022, of the MVR 190 million due in repayments by that year, MVR 81 million remained outstanding for loans managed directly by the ministry. This accounts for around 60 percent of the total loans issued by the ministry.

The audit report also noted that loan recovery was not carried out in accordance with finance regulations.

Under an agreement between the Ministry of Finance, Bank of Maldives (BML) and Bank of Ceylon, the banks are responsible for issuing student loans and recovering repayments.

However, by 2022, outstanding student loan repayments amounted to MVR 103 million at BML and MVR 3 million at Bank of Ceylon; a combined total of MVR 106 million, the audit report said.