Zicosu applauds Govt for loans

Masvingo Correspondent
The Zimbabwe Congress of Students Union (ZICOSU) has paid tribute to President Mnangagwa and his administration for swiftly moving in to avail loans to higher and tertiary education students.

ZICOSU says the re-introduction of loans showed that the new dispensation was committed to cushioning students at local universities and colleges from the economic challenges in the country.

Government has partnered a South African-based micro-finance organisation, Fundi Eduloan, to avail loans to students at the country’s colleges and universities at an interest rate of two percent under a $1 billion loan facility.

The development is expected to bring relief to thousands of students who faced challenges in paying fees after Government froze the loans and grants scheme for students owing to tight fiscal space.

ZICOSU secretary-general Mr Tapiwa Marongere said his organisation, with a membership of 250 000 students, was fully behind President Mnangagwa’s administration after its commitment to avail affordable loans to students.

“As students, we thank the new Government for securing loans for us at relaxed interest rates,” he said.

“Interest rates for student loans at local banks are currently pegged at 10 percent. Hence, the intervention of Fundi Eduloan, which charges only two percent interest on student loans will obviously force local banks and micro-finance institutions to revise theirs downwards.

“We also applaud the Government for standardising higher and tertiary education institutions, enabling students to easily transfer from one college or university to another. Furthermore, the recent move by the Government to slash attachment fees for students by 40 percent is a welcome development in our education system.”