Millions injected into Tanzanian student loan scheme

Tanzanian President Samia Suluhu Hassan has used her presidential powers to add TZS70 billion (US$30 million) to a higher education loan scheme to benefit 11,000 students who qualified for it last year, but then missed out.

The increase comes after the World Bank in May approved concessional loans worth US$875 million to Tanzania or $425 million for higher education for the implementation of development projects.

This included a project to strengthen the teaching and training environment in higher-education institutions.

The Tanzania Higher Education Students’ Loans received an increase of 22.8% or TZS106 billion in the current financial year, bringing it to a total of TZS570 billion for 2021-22.

The TZS70 billion is in addition to the TZS500 billion that was approved by the ministry of education, science and technology for disbursement to 160,000 students by the Higher Education Students’ Loans Board (HESLB).

Professor Bonaventure Rutinwa, the deputy vice-chancellor (academic) of the University of Dar es Salaam, thanked the government for addressing the issue.

“It will help more students who have made a lot of effort to qualify for higher learning admission ... they can now pursue their dreams for a better future,” he told a local newspaper.

Professor Joyce Ndalichako, Tanzania’s minister of education, science and technology, said the increase in the loan budget will be used to create awareness and improve education, as well as strengthen the management of the HESLB.

Under the country’s Higher Education for Economic Transformation project, the government also plans to train 430 lecturers over the next five years to deal with a shortage of PhDs in priority programmes at public universities.

Online process

Abdul-Razaq Badru, executive director of the HESLB, advised potential applicants to study the details of the loan scheme: “The guide is on the HESLB website from 2 July, and we advise applicants to read it before applying. In addition, the application process will be officially opened for 53 days from 9 July to 31 August 2021,” Badru said.

Badru said all higher education students’ loan processes will be moved online, which will make it easier to authenticate documents such as birth certificates. A phone platform will also be developed so that students can apply for or repay loans using their mobile phones.

The HESLB will also start a nationwide programme to increase awareness and widen the base for identifying potential beneficiaries.

To encourage loan repayment, the scheme will cancel penalties and charges.

Starting on 1 July, the 6% charge in Value Retention Fee charged annually on outstanding higher-education loans was scrapped, as well as the 10% penalty for delayed loan repayment.

This was in response to the president’s instruction to the HESLB to scrap the charges on the loans but to continue deductions of 15% from the salaries of beneficiaries who are formally employed, and to urge beneficiaries to repay their loans.