Education

Loans offer hope to needy students

W  hen Jacqueline Paul, 21, was  selected to Malawi  University of Science and Technology (Must) she was “excited but worried.”

The bachelor of science in disaster risk management student did not know where her tuition and basic needs would come from.

Chakwera ordered a hike in upkeep allowances amid rising cost of living.

“I knew my family wouldn’t afford my university fees and upkeep. I feared being withdrawn on financial grounds as the media is awash with reports of poor students on  the brink of dropping out from public universities,” she says.

But Jacqueline is among thousands of university students who obtain revolving loans so  that they can learn until their dreams come true.

The third-year student has been getting tuition and upkeep allowance from the Higher Education Students’ Loans and Grants Board since 2021.

Despite her initial  fears, she is optimistic about  completeing her degree programme.

“Without this loan, I’d have dropped out,” says Jacqueline.

Established in 2015, the Loans Board provides loans and grants to needy students in both public and private universities accredited by the National Council for Higher Education.

The World Bank, through the Skills for a Vibrant Economy Project, supported the board to extend the loans to open and distance e-learning (ODeL) students in public universities. The funding supports learners studying health, education, information  and communications technology, agriculture and energy.

The State-owned board assists students from families that earn no more than the minimum wage, orphans and those with disabilities. Applicants from labour-constrained households, those headed by chronically ill parents and child-headed also qualify for the loans.

For the 2024/25 academic year, the board disbursed K29.4 billion to 28 883 of the 29 813 applications nationwide, an 11 percent increase from the 2023/24 shortlist. The recipients include 18 840 male students and 10 043 females—and 565 are learners with disabilities.

From the total disbursement, K28.1 billion covered tuition and upkeep for beneficiaries in public universities while K1.3 billion went to students in private colleges.

And in a first, the board last year awarded grants to needy star performers in their first academic year.

Malawi Public Universities Students Union president Gershom Nyirenda says the educational loans have restored the hope of thousands of students on the verge of withdrawing.

However, he urges the board to remit the funds on time.

Nyirenda  said the loans “sometimes delay for weeks”, especially when names on the applicants’ national identity (ID) card and their student ID do not match. The affected students are required to go to National Registration Bureau offices to correct the discrepancies before completing loan agreements.

“So, if the bonding process is not completed in good time, students end up receiving their fees or upkeep allowances late,” he  laments.

According to loans board chief executive officer Prince Phwetekere, the national ID helps the lending institution to identify and track borrowers.

“The danger with name mismatch is that an individual can deny responsibility,” he says. “Therefore, we strongly advise all students experiencing this discrepancy to visit NRB and rectify the issue promptly.”

Constrained students also decry that the loans have been overtaken by rising tuition fees and cost of living.

In May last year, President Lazarus Chakwera ordered the board to increase the upkeep allowances from K350 000 to K560 000 yearly to cushion the student from the 44 percent kwacha devaluation in 2023.

The upkeep allowance has more than doubled from K200 000 the year Jacqueline enrolled at Must.

The Loans Board relies on budgetary allocation and recoveries from former beneficiaries.

However, the latter owe government over K5 billion and official figures show the board has recovered K2.1 billion since 2015.

Phwetekere says the recovery efforts significantly improved in 2024.

The repayments had more than doubled up from K49 million to K102 million since November 2023.

The Loans Board chief encourages past borrowers to repay the debt for the sustainability of the fund that guarantees needy students access to education.

“The board cannot consider eligible students who are currently excluded if beneficiaries do not repay the loans,” he states.

For Phwetekere, repaying the loan is not only a legal obligation, but also a contribution to the education of future generations.

He states: “We use the same money to provide loans to current beneficiaries. It is ia  a revolving fund.”

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