Tanzania: HESLB beneficiaries ordered to repay their loans
RECIPIENTS of graduate loans were reminded to make sure they repay their loans so that the money can be loaned back to needy Tanzanian students.
Higher Education Student Loans Board (HESLB) Public Relations Officer Ms.Veneranda Malima said the loan repayment helps other disadvantaged students who have no economic power to continue their education and achieve their dreams.
She made the call during an interview with local radio in Dar es Salaam, noting that a study indicated that many people had developed a culture of not repaying the loan thinking they could simply default since the money belonged to the government.
Ms. Malima encouraged beneficiaries to repay the loans since the government had waived the 6 percent interest.
Earlier this year, speaking to Tanzanian workers in the Mwanza region during the Labor Day celebration, President Samia Suluhu Hassan issued a directive to remove the 6 percent interest rate for all loan recipients from the board of directors.
According to HESLB, interest was introduced as a value retention fee (VRF) charged annually on the outstanding loan balance and not on the principal loan.
In addition, it aimed to increase the value of loan financing offered to beneficiaries. A beneficiary must be a qualified Tanzanian and meet the criteria for obtaining loans to join higher education institutions.
Ms Malima stressed that granting a loan to higher education students is based on need and not on which school a candidate has studied.
The HESLB has reserved a budget of 570 billion / – for the student loan for the benefit of 160 students for this fiscal year. The amount would benefit 160 beneficiaries, 62 are freshmen and 98,000 are continuing students.
She further explained that the Board of Directors has worked closely with employers from both public and private institutions in accordance with established guidelines to ensure that details of loan recipients are submitted to the HESLB on time.
“We continue to build data centers in collaboration with various stakeholders including the National Identification Authority (NIDA), the Tanzania Revenue Authority (TRA) and other institutions to track loan recipients.” , she said.