Since 1985/86 financial year, the Government of Malawi has been supporting university students with loans through the student loan schemes. The student loan schemes were introduced to enable students with poor family background to access higher education without burdens. The reasoning behind the student loan schemes was that needy students who will be supported with a loan will be required to pay back the loans so that other students also benefit from the same scheme.
However, for a number of years, there were no proper structures and mechanisms to facilitate repayment of these loans. Resultantly, former beneficiaries of the loans had nowhere to repay the loans. This, therefore, made it hard for the Malawi government to recover the loans.
Having realized the challenges that were involved in management of the student loan schemes, government through an Act of Parliament established the Higher Education Students Loans and Grants Board (HESLGB). HESLGB was established with two core mandates; to annually provide loans and grants to needy and deserving students and to facilitate recovery of all outstanding loans from former beneficiaries of student loan schemes.
The establishment of HESLGB is, therefore, an opportunity for all former beneficiaries of student loan schemes manifest their levels of patriotism, responsibility and gratitude to government for supporting them to attain higher education. Repayment of the loans will largely assist in creating a revolving fund which will support current and future needy students to access higher education thereby contributing towards attaining Goal number 4 of the United Nations Sustainable Development Goals; Ensure inclusive and quality education for all and promote lifelong learning.
Ills of non-repayment
It should be noted that the resources that government allocate to HESLGB is not enough to match the increasing demand for loans, as such recovery of outstanding loans is vital to boosting the resource base for supporting needy students. Sadly, there are some former beneficiaries who are deliberately choosing not to repay their loan. Consequently, this group of ‘selfish’ former beneficiaries is directly denying needy students a chance to access higher education thereby contributing to widening of the gap between the rich and the poor.
Loan Repayment
In order to ensure that more needy and deserving students are able to access higher education, all former loan beneficiaries must pay back their loans. The first step for loan repayment is checking loan balance through email; info.loans@heslgb.com/loans.recovery@heslgb.com, calling; 01795 955/979 OR
filling and submitting an online form on the HESLGB website www.heslgb.mw. Upon receipt of the loan balance, loan beneficiaries must EITHER directly deposit their payment into the following HESLGB bank accounts;
- FDH Account Number: 1380000022625, Account Name: Student Loans Collection Account, held at City Centre Branch
- National Bank Account Number: 1002261808, Account Name: Higher Education Loans Recovery
OR arrange with their employers to immediately start making monthly deductions which should then be remitted to HESLGB by the employer on the 15th of each month.
It is paramount for all former beneficiaries to know that they have a legal obligation to repay their student loan as stipulated by section 27 of the HESLGB Act.
Call to Action
Every Malawian has the right to access to education. Enjoyment of this right is dependent on the effort of government and all citizens of good will, especially former beneficiaries of student loans. Therefore, choosing not to pay back student loans is directly denying needy students there right to education. HESLGB strongly call upon all former loan beneficiaries to pay back their loans so that more needy students should be able to enjoy their right to education. Be responsible, pay back you loan now to contribute towards lessening the inequalities between the rich and the poor in Malawi.