Former President Mohamed Nasheed, who is contesting the MDP presidential primary, meets the youth this evening. Photo/Abdulla Ian

Nasheed in youth meeting pledges to restructure student loans

In order to do so, Nasheed said that he would study the latest information related to student loans.

26 January 2023

By Ahmed Mizyal

MDP’s presidential candidate Mohamed Nasheed on Wednesday pledged to restructure the existing student loan for higher education and said he will do so in the next government of MDP.

For the youth, Nasheed held a question-and-answer session at Lonuziyaarai Park Wednesday evening. Some of the young people who attended the session targeted Nasheed about various issues that were difficult for them.

One of the concerns raised by a young man who questioned Nasheed was the issue of having to take loans and then  having to spend years and years of his life paying it back.

Replying to the question, Nasheed said he believed the existing student loans given by the government should be restructured.

"I'm talking about loan waivers, I don't know how it can be done. If the government has to pay the money to the banks, then it is still not such a huge amount," Nasheed said.

"Either way, I see it and I promise to restructure the student loan."

In order to do so, Nasheed said that he would study the latest information related to student loans.

"I would like to [include] how to restructure student loans in the government formed in November, and how to arrange it so that students can pay back the loan comfortably," he said.

How it can be done, according to Nasheed:

  • Deducting a portion of the loan amount

  • Deducting a part from interest

  • Extension of repayment period

  • Giving a grace period again

"This is what both sides have to consider when restructuring any normal loan. So I have to side with the students and talk to the state regarding the matter," he said.

"God willing, a part of the principle amount will be deducted, some from the interest rate will be deducted, a grace period will be given and the repayment time period will be extended."

Nasheed said that giving relief to students who have availed such student loans will boost productivity.