Education is an investment and securing funding for this life-changing investiment can be challenging for vulnerable students.
In Malawi, student loans provided by the Higher Education Students’ Loans and Grants Board, are a popular means to finance higher education.
If you are a first-time applicant, all you need to do is to state your parents’ financial standing, pay a sizable processing fee and once the board determines, a loan is approved or not.
That is how many professionals we see today have financed their studies since the board came into existence in 1985.
But while this disbursement approach is ideal given the economic stamina of many Malawians, the main drawback is that it does not place some responsibility on the receiving student.
It is unfortunate that some students and former borrowers mistake this for free money from the government to every Jim and Jane, so they do not feel the weight of the obligation to do well in college and repay the loan.
That is why when one needs a loan for the next semester, basing it on academic performance, particularly grades, it would make students use it prudently.
This approach is ideal because it rewards academic excellence and provides deserving students with the financial support needed to pursue their educational aspirations.
In the US, for example, a lower grade point average (GPA) score lowers a student’s chances of getting a federal student loan.
This, therefore, places the responsibility of securing another student loan for the next semester into the hands of the recipient.
Yes, some would say the approach is harsh sort of, but we must always know that student loans aren’t freebies.
Neither should it be regarded as a thank you because one is studying at a public university, as others think.
No, it is a self-sustaining revolving fund.
Other future deserving students ought to benefit from it as well.
Therefore, disbursing it to somebody who barely has a sense of responsibility for their academic standing is not only risky. but also waste of already meagre resources.
Of course, exceptions can be placed on students who perform badly because of unforeseen circumstances such as chronic illness, injury and known special needs.
Apparently, we must realise that high performing students have a likelihood of a successful career, which reduces the risks of loan defaults.
Recently, the loans board said it is owed K16 billion in unpaid student loans, partly because some recipients see it as a freebie from the government.
Let us be honest with each other, there are some lazy students who are not serious about their studies and, yet they are beneficiaries of student loans.
Sadly, students like these fail to pay back the loan. Now, it is reasonable to strike them off the beneficiary list if their GPA is horribly low.
Government should not waste money on mediocrity because such folks are guzzlers draining resources for nothing.
Instead, let the loans board reward students who consistently excel.
Incentives such as reduced interest rates on their loans as well as flexible loan repayment terms would also help make the loans self-sustaining.
As we speak, the Loans Board heavily relies on government subversion to disburse loans. That is a sign that it’s struggling to live up to its mandate of making itself a self-sustaining board.
So, give loans to students who are serious about their studies basi. We cannot afford to spend money pettiness.
Mind you, these are taxpayers’ money; money we all sweat for and religiously pay to the government for development projects and social services.
We do not pay taxes to fund laziness. Let us put it say a minimum GPA of 2.0.
