Student Loan Spending Falls By MVR 132.9 Million This Year

Government expenditure on student loans has fallen significantly this year, with spending decreasing by MVR 132.9 million compared to the same period in 2024.

The state allocated MVR 768 million for student loans in 2025. According to the Finance Ministry’s Weekly Fiscal Development Report, only MVR 491.6 million had been disbursed by 13 November. During the same period last year, spending totalled MVR 624.5 million.

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The decrease in student loan spending is reflected across the wider education sector. The Ministry of Higher Education has utilised MVR 900.8 million of its MVR 1.3 billion allocation, a reduction of MVR 124.1 million from last year’s MVR 1.02 billion expenditure. The Education Ministry has spent MVR 3.1 billion out of its MVR 4.4 billion budget, which is MVR 114.1 million less than in 2024.

Concerns have increased over delays in student loan disbursements, stipends, and tuition payments, particularly for students studying overseas. Students and parents have reported late responses to correspondence and financial difficulties caused by the delays.

Higher Education Minister Dr Ali Haidar Ahmed previously acknowledged in Parliament that some delays occur due to incomplete information provided by students. On 13 May, he announced plans to introduce a Higher Education Management System mobile application to streamline complaints. The app was initially expected to launch in October and is currently undergoing testing, with the ministry stating that it will be completed this month.

The government allocates approximately MVR 1.5 billion annually for student loans, which are disbursed every six months. Officials have stated that the disbursement process will be shortened and that external assistance will be sought if necessary to ensure timely payments.