HESLB explains discrepancies in loans offered to varsity students

Dar/Dodoma. The Higher Education Student Loans Board (HESLB) yesterday explained the reasons why loan rates differed among beneficieries emphasizing that all is done based on established criteria and conditions.

The board urged students and their parents and guardians to scrutinise every aspect of the loan application with the view of obtaining the details of the loans extended.

“What makes one get a small amount compared to another depends on the needy levels of the two beneficiaries. A beneficiary may secure over Sh2 million for fees, while another less than that, this is all based on the established criteria,” Heslb corporate communications head Omega Ngole told The Citizen yesterday.

In the 2021/22 academic year, the government allocated Sh570 billion to fund 160,000 higher education students with 62,000 being first year students and 98,000 continuing with studies.

As of yesterday, 60,356 first-year students had already been allocated Sh157.3 billion and the board urged those with issue to make use of the appeals window that will open soon.

Concerns have been raised by loan beneficiaries, parents and even some opposition politicians over amount differences in loans released to students.

ACT-Wazalendo youth wing chairman Abdul Nondo was quoted in the media on Monday as saying over 90 percent of the students were offered a minimum fee of between Sh256,000 and Sh400, 500.

“You give a student Sh400,500 or Sh256,000 yet a student needs to pay a fee of between Sh1.5 million and Sh3 million, how have you helped this student?” He questioned.

St Augustine University of Tanzania student Bernado Osward said he was allocated Sh400,500 as tuition fee out of the total fee of Sh1.2 million required by his institution each year.

‘‘I’m forced to look for other means to survive. I have to use meals and accommodation allowances to fill the fees gap, this affects me badly in pursuing my education,” he noted.

But Heslb said that of the 60,356 first-year students allocated with loans so far, the minimum loan amount allocated to students is Sh2,099,500 while the maximum is Sh6,431,500.

The board says loan planning focuses on the needs of students and priority is given to orphans, the disabled, those with single parents, those who are funded in secondary education and those from poor households who have applied for a loan correctly and obtained admission.

The lump sum allocations for credit to beneficiaries takes into account the applicant’s needs and the course requirements, the board noted.

“The beneficiary may be assigned one or more clusters between; meals and accommodation, tuition fees, practical training, special needs for faculty books and stationary, and research,” said Mr Ngole.

“Thus, the beneficiary is categorized according to his or her needs and which are in the course of his or her admission,” he said.

In terms of meals and accommodation, Mr Ngole said currently each beneficiary is paid Sh8,500 per day and in four installments per academic year with Sh510,000 per installment.

The board recently announced a list of 782 students to receive 100 percent who are certified to be from poor households that are serviced by the Tanzania Social Action Fund (Tasaf).

Education expert Thomas Jabir said the complaints would continue to emerge because every year the number of students in need of loans goes up and many are eligible for the credit.

“This situation will always force the credit board to plan how to allocate funds and meet the number of beneficiaries that the relevant government targets. This is what is happening and it is a sign that the money being allocated is still not enough compared to the number of needy students,” he told The Citizen by telephone.