LOAN REFUND TO HIGHER EDUCATION STUDENTS' LOAN BOARD TRIPLES

HESLB Executive Director Abdul-Razaq Badru.

Loan repayment to the Higher Education Students’ Loan Board (HESLB) has more than tripled amid a 30-day ultimatum to loan defaulters to settle their arrears or risk court action.

HESLB Executive Director Abdul-Razaq Badru said in Dar es Salaam on Monday that the monthly loan repayment has increased from 2bn/- to 6.5bn/, thanks to stringent collection strategies.

“We have finalised all procedures to drag the loan defaulters to court should they fail to settle their outstanding balances within 30 days from today...they will also foot all the incurred court costs and others charges of tracing them,” Mr Badru told a news conference at the Tanzania Information Services, Maelezo, auditorium. He noted with concerns that the defaulters have severally been reminded to settle their debts but chose to ignore the demands.

According to HESLB boss, the board had issued notices to the non-payers last March and now plans to advertise their names in the media, hinting further that the defaulters’ names will be forwarded to the credit reference bureaus to deter them from accessing loans in financial institutions.

“We congratulate all the beneficiaries who have started settling their loans, the defaulters should stay warned of legal actions against them soon,” he said, adding, “Despite the increase in loan repayment some debtors are still not paying their outstanding debts.”

Mr Badru explained that an assessment by the board has identified 93,000 loan beneficiaries to whom it served invoices, with only 81,055 of them having started to repay their debts while 12,445 others have not paid even a single cent, notwithstanding the invoices served. According to Mr Badru, there are also 142,470 beneficiaries whose 239.4bn/- loans have matured for repayment but have not turned up to settle the amount.

“These beneficiaries are contravening section 19A(1) of the Higher Education Students’ Loan Board Act on the loan repayment,” Mr Badru explained. On the other hand, he revealed further that the board had between July 2005 and June, 2016, dished 2.55trn/- as education loans to 330,801 students.

It’s on record that the Tanzania Commission for Universities (TCU) has this year announced enrolment of about 58,000 students with Form Six and equivalent qualifications, who were not admitted in the previous rounds.

Daily News