Only 40% repay student loans; gov probes recovery options

Only 40 percent of students regularly repay the loans they take from the government to study overseas, said Higher Education Minister Dr. Ali Haidar Ahmed on Tuesday, as he was summoned to the Parliament for questioning.

Haidar said the government spent MVR 157 million on student loans between January and April.

“They don’t repay the loan. Only around 40 percent repay [their loan],” he said.

Haidar said that this is money that the state should be getting back.

He said that the Higher Education Ministry is engaged in discussions regarding the issue, and will reach a decision soon.

There has also been mounting concern among Maldivian students overseas over delays in the disbursement of financial aid they are entitled to by the state, specifically stipend and tuition fees, as well as delays in response to letters and emails sent by students inquiring about the delay.

Haidar was questioned regarding this again on Tuesday, specifically regarding the slow pace of the Higher Education Ministry’s services.

Haidar acknowledged there is a slowdown in the ministry’s services, but attributed this to a shortage of staff.

The government spends around MVR 1.5 billion each year on student loans, which is disbursed biannually.