State spending on overseas student loans declines amid ongoing delays

Government spending on Maldivian students studying abroad through state‑funded loan schemes has fallen sharply this year, with expenditure in the first two months down 28 percent compared to the same period last year.

According to the Finance Ministry, MVR 79.1 million had been spent on student loans as of February 27. This amounts to 10.2 percent of the MVR 776.6 million allocated for student loans in the national budget.

During the same period last year, the government spent MVR 109.9 million on higher‑education students under the loan scheme, a difference of 28 percent year‑on‑year.

Last year, the government budgeted MVR 768 million for student loans. By December 18, total expenditure had reached MVR 548.2 million, equivalent to 71.4 percent of the annual allocation. Spending at that point was 20.4 percent lower than the previous year, when student‑loan disbursements stood at MVR 689 million.

Statistics released by the Higher Education Ministry in September show that more than MVR 1 billion has been disbursed in loans to students pursuing higher education since last year.

The decline in spending comes amid persistent complaints from students and parents about delays in receiving stipends, tuition payments, and responses to official correspondence. These delays have been particularly challenging for students studying abroad.

Higher Education Minister Dr. Ali Haidar previously acknowledged the concerns, saying the government was working to resolve delays in disbursing funds to students studying at state expense.