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Loans Board in K4bn deficit

Higher Education Students Loans and Grants Board says it has a K4 billion deficit to provide loans and grants to 29 817 students for the 2024/25 cycle in both public and private colleges.

The board’s executive director Prince Phwetekere revealed the shortfall when Minister of Higher Education Jessie Kabwila on Tuesday visited the institution’s offices in Lilongwe as part of her familiarisation tour of higher learning institutions.

Kabwila: I will lobby for increased funding | George Singini

He said: “We are making progress but the major challenge we have is funding for both loans and grants as well other recurrent transactions.

“In the current cycle, for example, we have a deficit of K4 billion, which we expected that we would be provided with during the 2024/25 Mid-Year Budget Review last September but it didn’t happen.”

Phwetekele said for the 2024/25 Financial Year, generic student loans were approved at a loan value of K29 427 211 800, but the board received K24 billion in the national budget, creating a K4 billion deficit.

In her remarks, the minister 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’s recover these loans at any cost,” said Kabwila.

The board was established with an Act of Parliament number 2 of 2015 to finance access to higher education of needy and deserving students pursuing accredited programs in accredited public and private colleges and to recover such loans dating back to 1985.

The loans cover tuition and other education experiences to reduce drop out levels among higher education students however the board has been struggling to recover the loans and experts have attributed this to poor records to facilitate follow ups.

During the tour, the Minister also visited and interacted with management and staff at the Lilongwe University of Agriculture and Natural Resources and the Malawi School of Government where she was briefed on a number of projects taking place and challenges being encountered.

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