Opinion: Applications for Student Loans Should Always be Open!
Decades ago, higher education was a luxury afforded to capital city Male’ residents and family and friends of business-owners alone. Ordinary citizens acquired such opportunities through foreign scholarships, which rarely happened.
Years later, opportunities for higher education were awarded by the State to students who are high achievers in their O’Level and A’Levels. However, a lot of these were slowed down with the introduction of student loans.
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The Student Loan Scheme Needs to be Reformed
Student loans became an important scheme that reduced the barriers to higher education. The loan has expanded from year to year and the current government has expanded it significantly. When the loan was last issued, all eligible students were given the opportunity. In addition, the free degree program is also an addition to the scheme.
The introduction of student loans for pursuing higher education reduced the barriers for even the children of the poorest to become doctors, pilots, or pursue a career of their choosing. However, the scheme still needs to be improved.
Some students believe that there should be no barriers to higher education. Nor should it be a “lottery” open at a certain time of the year. Instead, the scheme should be always open.
The Lending Rules Narrow Opportunities for Students
Currently, student loans are usually opened twice a year. So far this year, the opportunity has been opened only once. There are still many students who want to pursue higher education. Additionally, the number of school leavers is also high. However, due to the rules of lending, that opportunity is not yet available.
“Last time, all eligible students were given the opportunity. However, it was opened for a certain period of time and after that period again we have to wait until such an opportunity is opened. If you can’t make it during the opening period for various reasons, you have to wait. We’re wasting a lot of time,” said one student.
If you fail to apply during the opening period, you will lose another year and it will be a burden for those who are pursuing higher education at their own expense.
“When it finally opened, I couldn’t apply because I didn’t have the required document from the college. I received the placement letter a week after the deadline. I will have to wait until it opens again. You can’t postpone the course until you get the loan because you’re starting. You have to spend a lot of money on yourself because of this. USD 6,000 a year for fees and USD 500 a month for expenses,” said a medical student in the Philippines.
He believes that student loans should not be open for a fixed period of time. Instead, the opportunity should be made available whenever needed. He believes that this will give more people opportunities and garner fewer complaints.
“It is the same as bank loans. BML already offers study loans. There is no time limit to submit. However, the interest rate is high and the equity is high. Similarly, the government can reduce the loan by charging the same amount of administrative fees as a student loan and not taking equity. Or it is important to open the government student loan scheme whenever you want,” the student said.
The government has made positive changes to student loans over the years. These include trimming the previous interest rate and charging a one percent administration fee and offering the opportunity to all eligible students in order to give as many students as possible the opportunity. These are positive changes.
The next government must work to sustain these changes. The demand for student loans can be reduced by making them an ever-present opportunity instead of a fixed window. If it is open to every eligible student, at any time, there will be fewer complaints and many parents will find financial relief.
