Introduction
On one hand, proponents of higher education argue that the more educated the citizens of a country are, the more likely their personal and societal economies are to develop and succeed. On the other, some people argue that higher education is a luxury because its benefits are more for an individual than the society. Although this is an ongoing debate the underlying fact is that education is important to the socio-economic transformation of any society. We cannot therefore down play the role of education for Malawi just like somebody said “if you think education is expensive, try ignorance”. The Government of Malawi acknowledges the role that higher education plays in development that is why, amongst other initiatives like establishing more higher learning institutions and establishing a quality assurance Board for higher education in the name of National Council for Higher Education, it further established the Higher Education Students’ Loans and Grants Board (HSLGB) to support needy and deserving students with loans to access higher education in Malawi.
Obligation of Loan Beneficiaries
The responsibility of financing higher education is not solely on government but also on the private sector and individual citizen’s especially former beneficiaries of students’ loan schemes. HESLGB is mandated to recover loans from all former beneficiaries so as to create a self-sustaining revolving higher education financing mechanism. In reference to Section 27 of the HESLGB Act, the following are some of the obligations of beneficiaries of loan schemes:
- It is the duty of all loan beneficiaries under HESLGB Act to repay their debt to the Government through the Board.
- All loan beneficiaries, within two years upon successful or unsuccessful completion of the course for which the loan was granted, or upon earlier termination of such course for any reason or cause whatsoever, start the repayment of their student loan to the Board.
- All loan beneficiaries are liable to repay to the Board the total sum of money loaned with interest calculated on the basis of the formula as prescribed on the application forms issued to them by the Board, or as may have been established by the Board as having been the sum of money personally received by the loan beneficiaries or received through their bank account.
- All loan beneficiaries who are employed, whether the employment is on contract or permanent terms, are supposed to make arrangements with their employers for monthly deductions from their salary, of such amount, and within such a period as the Board may determine for remittance to the Board as repayment of a student loan taken. The loan beneficiaries are further required to ensure that payment of the monthly deductions by the employer are remitted to the Board from the date such remittance is due and that all relevant documents bear their correct details. This also applies to loan beneficiaries who are in the employment of a foreign government (which includes an embassy, high commission, or resident representative of a foreign government), or an international organization (which includes organizations within the United Nations Organization, a foreign company, a foreign agency, a foreign association or any foreign institution or entity).
- All loan beneficiaries who are self-employed in any trade, occupation or profession shall, within two years of engaging in such self-employment, make monthly remittances to the Board of such amounts of money as the Board may determine. Furthermore, loan beneficiaries are supposed to ensure that the remittance of such monthly amounts is made to the Board and that all relevant documents bear their correct personal details. In case of change of details, loan beneficiaries are mandated to inform the Board of their current postal, physical, occupational and residential addresses and telephone numbers, if any, and any subsequent changes thereof.
Penalty for non-compliance
Section 28 of the HESLGB Act stipulates that all loan beneficiaries who, without good cause, fail to repay their student loan, are liable to civil proceedings. Furthermore, all employers who fail, without reasonable cause, to notify the Board that they have in their employment, a student loan beneficiary after being made aware of such a fact, within a period of thirty (30) days, commit an offence and shall, on conviction, be liable to a fine of one million Kwacha (K 1,000,000) for each individual student loan beneficiary in their employment.
Call to action
The increase in number of people who are seeking to purse higher education coupled with the increase in number of new universities/colleges shows that a lot of Malawians recognize the importance of higher education. HESLGB believes that compliance of loan beneficiaries to their legal obligations in loans repayment as stated by the HESLGB Act is a key factor to ensuring that adequate support for needy and deserving students to access higher education is available. Paying back your student loan there is not only a moral responsibility but it is also a legal responsibility. Be patriotic and be responsible by paying back you loan now!