MVR 647 Million Disbursed as Student Loans in 2023

The government disbursed MVR 647 million in student loans last year, more than doubling the amount spent in 2022, according to data from the Ministry of Higher Education, Labour and Skill Development.

In June 2023, President Ibrahim Mohamed Solih committed to approving loans for all 1,225 applicants eligible under the government’s student loan scheme.

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This disbursement marked a significant increase compared to the annual average over the prior four years, with over a third of the 3,211 loans awarded under the previous administration allocated in the past year ahead of the presidential elections in September.

The outgoing administration had prioritised higher education, implementing a policy offering tuition-free college education for students undertaking their first bachelor’s degree, a cornerstone of its educational agenda.

In 2024, the new administration led by President Mohamed Muizzu opened applications for 500 student loan slots, receiving a total of 1,709 qualifying applications.

The government pledged to provide loans to all eligible applicants; however, some students have raised concerns over delays in receiving loan payments or agreements ahead of their course start dates.

The supplementary budget passed by the parliament allocates an additional MVR 458 million for student loans.