Gov't proposes scrapping of university scholarships, replace them with loans

Students placed in public universities will be given 100 per cent funding, with the entire amount set to be a loan repayable once employment is secured.

The new University Funding Bill, which is currently before education stakeholders, seeks to consolidate all higher education funding under a single framework to be managed by an authority.

The Ministry of Education is once again proposing sweeping reforms to university funding through the Tertiary Education Placement and Funding Bill currently before Parliament.

Unlike the current model, where some students receive scholarships while others receive a mix of scholarships and loans based on need, the new proposal places all government funding under one authority, with beneficiaries expected to repay the funds after completing their studies.

Graduates who secure formal employment will be required to disclose their loan status to their employers immediately upon employment to facilitate loan deductions.

Those in informal employment will instead be required to enter into a repayment agreement with the Higher Education Loans Authority, outlining the mode and frequency of repayment.

To safeguard borrowers, the proposed law caps loan deductions at not more than 25 percent of a beneficiary's earnings.

The Bill seeks to integrate sources of funding and bring together separate funding streams into a sustainable financing mix.

The Bill also grants the authority powers to recover any outstanding amounts as civil debts, allowing it to pursue legal action against loan defaulters where necessary.

The Bill has already been tabled before the National Assembly's Education Committee and will now proceed to debate by Members of Parliament before lawmakers decide whether to approve the new funding model.