Students wary of revised education loan scheme

Students in public higher institutions of learning have expressed discontent over the new student’s loan scheme yet to commence.

Friday, November 16, 2007

Students in public higher institutions of learning have expressed discontent over the new student’s loan scheme yet to commence.

The new policy will become operational in  January next year, where students will be able to access loans from a guarantee fund the government will deposit in designated financial institutions.

The students argue that whereas it is a positive step geared towards national development, it would directly affect their personal livelihoods.

"Many students, especially the girls, may end up into early marriage as an alternative so as to raise the funds for tuition.

This is a scheme that should get wider consultations, otherwise it seems like government is imposing it on us,” Sam Mugisha, the Guild President of Kigali Institute of Science and Technology (Kist) said on Wednesday.

In the new programme, government will contribute 50 percent of the tuition fees for students doing arts courses, and 75 percent for students undertaking science subjects.

This does not include the monthly upkeep package.

Contrary to the current status, students will undergo a Financial Means Test (FMT) in order for them to be eligible to earn a monthly upkeep package.

Government will also fully pay for students who hail from very low income families and have scored either a distinction in science related subjects or a grand distinction for arts students.

Government currently sponsors over 15,000 students countrywide through the Student Financing Agency for Rwanda (SFAR) with each getting a monthly upkeep package of Frw25, 000 on top of paying their tuition fees.

Emmanuel Murenzi, the Guild President of the School of Finance and Banking in Mburabuturo requested the government to continue with the current system by using the money currently being recovered through SFAR.

Education Minister Dr Jean d’Arc Mujawamariya dismissed claims that the loan scheme will lead to high drop-out rates and girls engaging in immoral behaviour.

She said that her ministry and the Local government ministry will work together in identifying information about needy students who will benefit from the fund.

"They should not worry. If they are academically gifted but can not afford it, they will benefit because we shall identify them through thorough research on their backgrounds,” she said on phone yesterday.

Mujawamariya added that students in all government higher institutions of learning will soon start filling forms to ascertain their home backgrounds.

"We shall not ask any collateral from student. All we need is the right information and we shall assist.

Those from well-to-do families will sponsor themselves,” she added.

The minister warned students against concocting information, saying that any fraudulent applications will have to be reimbursed.

The Director General of SFAR Emmanuel Muvunyi said that the new loan scheme aims at promoting national priorities that will lead to achieving objectives of the Vision 2020 strategy. 

Ends