Only 40% of Students Repay Gov’t-Funded Overseas Loans, Says Higher Education Minister

Higher Education Minister Dr Ali Haidar Ahmed has revealed that only 40 percent of students regularly repay the loans they receive from the government to pursue studies abroad.

The minister made the remarks today during a parliamentary session, where he was summoned for questioning. He noted that the government spent MVR 157 million on student loans between January and April this year, and expressed concern over the low repayment rate. Haidar emphasised that the funds distributed as loans are public money that should be returned to the state.

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The Higher Education Ministry is currently engaged in internal discussions to address the issue, and Haidar indicated that a decision will be reached soon.

In addition to concerns over loan repayments, the ministry has faced criticism from students overseas regarding delays in the disbursement of state-funded financial aid, including stipends and tuition fees. Students have also raised complaints about a lack of timely responses to letters and emails sent to the ministry concerning these delays.

Last year, the government disbursed a MVR 647 million in student loans, more than doubling 2022’s amount. This spike followed former President Ibrahim Mohamed Solih’s commitment to fund all 1,225 eligible applicants in 2023.

Over a third of all loans given by the previous administration were disbursed in 2023, in the led-up to the presidential election in September. Higher education remained a priority for the Solih administration with initiatives including tuition-free college education for students pursuing their first bachelor’s degree.