Preamble

Recent developments in the Education Sector have shown that the Government of Malawi is committed to its efforts of increasing inclusive and equitable access and improving quality of higher education in the country. Among many other initiatives, permitting private universities to expand their operations; increasing bed space in public universities; and introduction of online and distance learning systems are some of the initiatives that Government is implementing with the aim of increasing accessibility of higher education for all Malawians.

Whilst registering a remarkable increase in the number of Malawians who are able to access higher education, some literature on higher education indicates that Malawi’s higher Education enrollment rate is among the lowest in the world. One of the major factors that is hindering a lot of Malawians to enroll into institutions of higher learning are the substantial financial implications that go with accessing higher education. A study by World Bank in 2010 revealed that majority of the Malawians that enrolled in institution of higher learning are those from well to do families because they can afford to pay the costs unlike those who come from poor families. Resultantly, this is contributing to widening gap between the poor and the rich as the poor continue to fail to finance access to higher education and the rich are able.  

Benefits of Higher Education

It is common knowledge that education is important in all aspects of our lives and further than that, the benefits of accessing higher education are shared by an individual and the communities. Studies show that individuals with college degrees, earn more than others and enjoy better working conditions. This is evident in most of the institutions that we are employed in. A comparison of the conditions of service for a Chief Executive Officer or an accountant who has a degree from University of Malawi (Polytechnic) and conditions of service for a cleaner who has a Malawi School Certificate of Education (MSCE) at a same company are a clear manifestation of this argument.  It is also argued that individuals with college degrees contribute more to society, both through higher tax payments and through their civic involvement. In short, higher education contributes greatly to the socio-economic development of every society.

Reforming the Financing Mechanism for Higher Education:

Student Loans as a remedy

As one way of ensuring that all Malawians regardless of their economic status are able to access higher education, the Malawi Government through an Act of Parliament No 2 of 2015 established the Higher Education Students Loans and Grants Board (HESLGB). The Students’ Loans Board is mandated to facilitate provision of loans to needy Malawians students so that they can finance access to higher education in order to ensure equity in access to higher education in Malawi.

This is markedly, a departure from a long established tradition that government is solely responsible for the provision of finances for higher education in Malawi. Government, through the Loans Board seeks to create a students’ loan revolving fund that will sustainably provide finances to needy bur deserving university students now into the next generations by providing recoverable loans that are paid in a period of ten years.

The Students’ Loans Board is also mandated to recover loans from all individuals who benefited from previous government loan schemes that date back to 1985. Recovery of all matured loans is crucial to all the operations of the Board. It should be noted that the Students’ Loans Board is funded only by Malawi Government through Treasury. Whilst there is commitment and political will from the Malawi Government and its leadership for funding the students’ loans, it is also true that Government has many competing priorities that need to be financed every year.

Since some Malawian former university students have benefitted from the loans schemes starting from 1985, another source of funding to the Students Loans Board is through the repayment of the old loans to Government through the Students’ Loans Board.

Therefore, timely and effective recovery of mature loans from former students’ loans beneficiaries is a key determinant in diversifying the resource base of the Loans Board and directly is a determinant factor towards increasing the numbers of needy students that the Board can support.

In other words, the increase in number of former beneficiaries who repay their loans will automatically lead to an increase in the number of needy students that the Board will support thereby increasing the number of Malawians coming from poor households accessing higher education. Therefore, this will be reducing the gap between the poor and rich as they equally access higher education.

Call to Action

The Student Loans Board recognizes the important role that higher education plays in the socio-economic development of societies that is why it is emphasizing the need for more and sustainable investment in higher education. The Students’ Loans Board acknowledges the efforts that the Malawi Government is doing in ensuring that it reduces that gap between the poor and the rich in accessing higher education. However, the Students’ Loans Board would like to remind all former beneficiaries of their moral and legal obligation to repay their loans as choosing not to repay is a crime and it is directly denying a poor but deserving Malawian access higher education. Non-repayment of students’ loan is a direct expression of lack of patriotism, integrity and symbolizes an anti-development mind. The Students’ Loans Board is seriously calling upon all former beneficiaries to payback their loans so as to help the current and future needy students to realize their dreams of being graduates so that they meaningfully contribute to the socio-economic and political development of the nation.

Let it be known to all former students’ loans beneficiaries that from next week we will publish names of former beneficiaries who have proven that they don’t love Mother Malawi by deciding not to payback their loans. Never say we never told you!