News Column

State Keen to Recover Loans From Students

June 24, 2014

THE government has come up with various strategies to ensure that those who benefitted from higher education loans repay in time to give opportunities to others to benefit.

To start with, the Ministry of Education and Vocational Training in collaboration with the Immigration Department plans to stop issuing travel permits (visas) for beneficiaries who have not repaid their loans.

The Deputy Minister for Education and Vocational Training, Ms Jenista Mhagama told the National Assembly on Tuesday that the government also expects to easily recover the loans when the National Identity Card project is completed.

"We are planning to stop stamping visas on applicant's passports who are yet to complete their loan reimbursement. There are several graduates who have benefited with loans from the Higher Education Students Loan Board (HESLB) and decide to look for job outside the country, this makes it difficult for the board to trace them," she said.

Ms Mhagama said the ministry has a lot of plans to recover loans from beneficiaries. "We are ready to bring in the Parliament a list of our strategic plans on loan recovering. We are determined to get the money back so that it is used to educate others," she said.

She, however, noted that issuance of national IDs would help the board to have correct data of the beneficiaries, thus make it easier to trace them.

She said that through national IDs the board will be able to recover its money from graduates employed in the formal and informal sector.

According to her, the government in the early 1970s it was signing special bond agreement with students to ensure that they work in the country for a specific period of time to make students give the money back.

She said the bond agreement programme was cancelled following changes in the public service sector in the country. She said the government is thinking of re-introducing the bond programme to some of the crucial sectors in order to retain the graduates.

The Deputy Minister was responding to a question by Ms Namelock Sokoine (Special Seats-CCM) which was asked on her behalf by Betty Ms Machangu, (Special Seats-CCM).

In her basic question, Ms Sokoine wanted to know whether the government was having any plan to ensure that graduate teachers who have benefited with education loans from the government don't quit the job.

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Source: AllAfrica

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