Reps committee urges stricter student loan repayment

DAR ES SALAAM: THE Social Welfare Committee of the Zanzibar House of Representatives has urged the Higher Education Students’ Loans Board (HESLB) to strengthen loan recovery measures to ensure the revolving fund remains sustainable for future generations.

The call was made yesterday by the committee Chairman, Mr Hussein Ibrahim Makungu, during the committee’s visit to HESLB offices in Dar es Salaam, to learn about the Board’s operations and higher education financing systems.

Mr Makungu said student loans are not free money but revolving resources that must be repaid once beneficiaries secure employment and become financially capable.

He warned that failure to recover loans effectively could deny other young Tanzanians the opportunity to pursue higher education.

“A person should not receive a loan, get employment and then refuse to repay while other young people are waiting for the same support,” he said.

Mr Makungu urged HESLB to take firm action against beneficiaries who deliberately avoid repayment despite having the ability to pay, saying the funds must continue circulating to support future students.

He also called for greater public education to ensure beneficiaries understand the difference between loans, scholarships and other forms of government assistance.

The committee chairman further commended HESLB for embracing digital systems that have simplified loan applications and improved access to services, particularly for students living in remote areas.

He said financial assistance should also prioritise deserving students from poor and vulnerable families, including orphans.

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HESLB Director General Mr Bill Kiwia said the Board has recorded major progress in loan recovery and the expansion of higher education financing.

He said annual loan collections have increased from about 50bn/- in 2021/22 to 235bn/- last year, surpassing the Board’s target of 220bn/-, while total collections between 2021/22 and 2025/26 reached 955.2bn/-.

Mr Kiwia said improved recovery is crucial for sustaining the revolving fund and expanding opportunities for more students.

He said the Board has disbursed 4.67tri/- since the sixth phase government under President Dr Samia Suluhu Hassan assumed office, representing nearly half of the 9.79tri/- disbursed by HESLB since its establishment.

He also said the government funding for student loans has increased from 570bn/- in 2021/22 to 1.07tri/- in 2026/27.

Mr Kiwia also highlighted digital transformation as a key driver of the Board’s progress, saying automation has dramatically reduced the time required to apply for loans.

“Previously, applying for a loan could take up to two weeks. Today, the process can take as little as three minutes,” he said.

He said the reforms are helping HESLB expand access to higher education while strengthening the sustainability and efficiency of the student loan scheme.