Existing student loan restructured; repayment extended to 20 years
Subsequently, due to the Covid-19 pandemic, student loan repayment was deferred till December 2020.
By
Aminath Shifleen
Government has extended the deadline for re-payment of student loans taken by students for higher education to 20 years.
Student loans, which have to be repaid within a certain period of time after completion of the study, has become a burden and has led to complaints from many students. Restructuring the loan has always been a promise of the government.
President Ibrahim Mohamed Solih has publicly announced changes in student loans. However, the students were informed about the extension of the loan repayment period in a letter sent by the Bank of Maldives on January 24, citing the Higher Education Ministry.
According to the letter:
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The administrative fee on the loan has been reduced to 1%, which was earlier at 5%.
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Loan repayment deadline extended to 20 years
There are still concerns of students who had taken student loans in the past. Going forward, I will try to ease all such burdens on our creative, strong and responsible local youth.
Restructuring student loans is a 100-day vow of this government.
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Commission rate or administrative fee on loans that were earlier 5% were reduced to 3%.
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The repayment period was extended to 25%
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Subsequently, due to the Covid-19 pandemic, student loan repayment was deferred till December 2020.
In his presidential statement, the president said that with this change in student loans, the amount paid at the previous high rate will now be deducted from the total amount of the loan. He added that with the new changes, students will have to pay back less in their monthly dues.
"Students who had taken student loans in the past still have their concerns. Going forward, I will try to ease all such burdens on creative, strong and responsible local youth," he said.
In his presidential address, the president spoke about a number of issues related to the education sector. He highlighted the projects that have been completed and the ongoing work.
The president pointed out:
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To increase school space and resources, 1,578 classrooms and 85 multipurpose halls are under across the country; another 509 infrastructure projects related to education are underway
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All the atolls have now been made facilitative for higher secondary
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So far, 16,315 students have joined the government's 'free degree programme'; more than 6,500 of them have graduated
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A project is underway to employ over 6,000 youth; junior colleges, TVET centres and polytechnic centres are being set up across the country
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R. Alifushi Tivet Center and HA. Dhidhdhoo Junior College is in progress.
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K. Thulusdhoo Polytechnic Centre and N. Kendhikulhudhoo Junior College have been handed over to the contractor.
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HDh. Kulhudhuffushi and Fuvahmulah Tivet Center, N. Velidhoo Junior College
