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Jackpot for needy students

Higher Education Students’ Loans and Grants Board says it will in the next fiscal year increase the number of beneficiaries by 15 percent, drawing praise from students’ representatives and education activists for the equalisation efforts.

The board’s executive director Prince Phwetekere said in an interview on Monday that the agency plans to support 33 427 students in 2025/26 financial year, which is 4 544 more students than those benefitting in the current fiscal calendar ending March 31 2025.

He said the board expects K33.9 billion funding from Treasury to achieve the new targets, up from K30.5 billion in the current year, which is targeting 28 883 students.

The planned boost in the number of beneficiaries comes on the back of President Lazarus Chakwera’s order last May to increase student upkeep allowances from K350 000 to K560 000 yearly to cushion students from rising cost of living.

Over the last six years, there have been steady increases in the number of beneficiaries and loan disbursements.

Between 2020 and 2026, 149 841 students will have accessed the loans and grants at a cumulative K122.7 billion, according to our analysis of figures from the board.

The annual number of beneficiaries has risen by 81 percent from 18 424 in 2020/21 to 33 347 in 2025/26 while annual funding allocation has nearly tripled (278 percent) from K9 billion to K34 billion in nominal terms, according to the board’s data.

On average, 24 973 students benefitted annually at a cost of K20.45 billion a year, translating to around K800 000 per student per year.

Education activist Limbani Nsapato commended government for the expanded coverage, but urged authorities to ensure that funding to the board is sufficient and disbursed in time.

Civil Society Education Coalition executive director Benedicto Kondowe said the real impact will depend on whether the proposed K33.9 billion budget is fully funded by Treasury.

He said: “Given the financial constraints the country faces, there is need for assurance that this increase will be sustainable and not lead to funding gaps that could disadvantage students mid-way through their studies.”

Parliamentary Committee on Education chairperson Brainax Kaise said they have been working with the board on increasing the number of beneficiaries and further pledged to ensure that the agency gets the needed funding.

Malawi Public Universities’ Students Union president Gershom Nyirenda, while commending the board for roping in more beneficiaries, said the goal should be to reach 100 percent of those who apply for assistance.

“The figures are impressive and the board is already doing good [work], but we want every needy student who applies for the loans to be considered,” he said.

Nyirenda’s remarks were echoed by University of Malawi Students Representative Council vice-president Linda Phiri, who called for continued efforts to expand the loan scheme to cover more students who are struggling to access higher education due to poverty.

“While the proposed budget is welcome, we urge the board and the government to ensure timely disbursement of funds to avoid financial hardships for students,” she said.

Third year Bachelor of Arts in Journalism student at the Malawi University of Business and Applied Sciences Chancy Hollace, who is currently among the loan beneficiaries, hoped the increase will work towards closing the gap.

The board is getting closer to narrowing the gap, if figures from its executive director Phwetekere are anything to go by.

According to Phwetekere, in the 2024/25 financial year, the board received 29 813 loan applications from students in 25 public and private universities, of which 28 883 were supported, representing 97 percent coverage as only 950 (three percent) were unsuccessful.

Last week, he said the board had a K4 billion deficit to provide loans and grants to students that are in need in both public and private colleges.

Phwetekere revealed the shortfall when Minister of Higher Education Jessie Kabwila visited the institution’s offices in Lilongwe as part of her familiarisation tour of higher learning institutions.

Kabwila pledged to lobby for an upward adjustment in funding for the board to cater for more deserving students and improve the quality of tertiary education.

“Now that I have a clear picture of the situation, when I go back, I will lobby for increased funding, but let us recover these loans at any cost,” said the minister.

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