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Fidelis Munyoro Chief Court Reporter
Students at institutions of higher and tertiary learning, who are struggling to pay fees, can now access loans at selected financial institutions under a $1 billion Government facility.
In a circular dated February 16, 2018 sent to vice chancellors, principals of teachers colleges, polytechnics and industrial training colleges apprising them of the new development, Government said students can now approach banks such as ZB, NMB, POSB and CBZ.
Micro-finance institutions — Eduloans and Getbucks — are also part of the plan.
While the seven financial institutions will meet half the budget, the Reserve Bank of Zimbabwe (RBZ) will cover the remainder.
“This circular minute serves to apprise all principals that students who are facing difficulties in paying fees should access the educational loan facility availed by the ministry and the Reserve Bank of Zimbabwe at ZB, NMB, POSB, CBZ, Eduloans and Getbucks financing institutions,” said a Mr L Mudyiwa, Acting Secretary for Higher and Tertiary Education, Science and Technology Development.
Essentially, students can no longer miss lessons or exams over non-payment of fees, except those who would have spurned the loans.
“In this regard, no student may be excluded from attending lectures due to non-payment of fees unless that student has refused to apply for the educational loan or is refusing to pay the fees,” added the circular.
According to Mr Mudyiwa, colleges should guarantee loans on behalf of the Government, especially for potential beneficiaries whose parents or guardians are not able to do the same.
Zimbabwe Congress of Students Unions president Takudzwa Gambiza said while the loans were now available, some students were facing challenges in accessing the facility.
“The challenge we are facing is that of the requirements for one to qualify for the loans,” said Gambiza.
“The requirements are somehow rigid and stringent, especially on the issue of collateral security, which the banks and micro-finance institutions require. Our appeal is to have easy access to the loans and not something that fails to manifest on the ground.”
Gambiza said some institutions which should assume the role of guarantor are hesitant to comply with Government’s directive.
Yesterday, University of Zimbabwe Student Representative Council president Mr Stephen Tsikirai said Government’s decision to restore the student loan facility was welcome, as most college-goers have been struggling to pay fees.
“The good thing about this facility is that it is not mandatory for parents and guardians to pay back the loans instantly,” said Mr Tsikirai.
“The loans are serviced over a period of time. Also, under this facility, parents and guardians who are not able to sustain the loans it becomes the responsibility of Government institutions (colleges and universities) to be guarantors.”
The students’ loan facility is part of a raft of measures by Government to ensure universities were relevant to national policy challenges and met the training and research needs of society and industry.
Student grants were discontinued in 2006 due to cash flow challenges and replaced by a cadetship programme in 2010.
However, the latter did not yield desired results as it was also dogged by funding challenges.
The current loans carry a five-year tenure and their interest rates do not exceed 10 percent, which is marginally below the 12 percent interest rate cap agreed by the RBZ and the Bankers Association of Zimbabwe (BAZ)
Tsikirai said Government’s intervention is meant to cater for all would-be beneficiaries, which is a departure for the cadetship which only chose a select few.
“To access the loans, the guardian of the student will make an application and is subsequently requested to submit his or her proof of income,” he said.
“This is done to secure the cash outflow of the “lenders” which are the financial institutions.”
The selected financial institutions, he said, have since disbursed $1 billion for the initiative.
“To the students without guardians and or whose guardians do not have stable sources of income, the university will act as the guarantor. This is done to alienate every case of discrimination prompted by class or background.”
Online Reporter