Management of student loans, grants to be outsourced | short skilled

Minister admits her officials were not up to the job

The Ministry of Education and Skills Development (MoESD) together with Public Enterprises Evaluation and Privatization Agency (PEEPA) are working on the possible outsourcing of the management of tertiary scholarships to a private company.

The company that wins the tender will manage an estimated P2 billion annually, which would involve processing applications, paying student’s fees, allowances and other expenses, as well as recovering debts when the students have completed their courses.

In an interview with The Gazette, the Minister of Education and Skills Development, Pelonomi Venson-Moitoi, said a few years ago the Directorate of Corruption and Economic Crime (DCEC) were asked to investigate possible corruption at the Department of Tertiary Education and Student Funding (DTEF).

This followed allegations that ghost students were being sponsored; some students had bribed their way into tertiary schools; and that some officers stole government money by using false student accounts.

In 2010, 23 officers of the DTEF were suspended pending an investigation into allegations of fraud and mismanagement. They were later redeployed to other ministries and the department was closed down indefinitely pending investigation by the DCEC.

Minister Venson-Moitoi said the reason for outsourcing was because professionals would manage and administer the grants and loans better. “We have regular administrators within the Ministry but they are not adequately equipped with financial management,” she said. She hoped with the services of a professional company service delivery will be improved.

But Venson-Moitoi revealed that admission and registration will remain the responsibility of the Ministry.

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Borrower benefits are money-saving incentives that lenders offer to students and parents on their education loans. Lenders use these benefits to reward borrowers who make consistent on-time payments, enroll in an automatic debit program, or utilize tools created by the lender that better manage monthly student loan payments. These benefits can come in the form of interest rate reductions, where a discount is taken off the interest rate. They can also be offered as principal reductions, where the borrower receives a loan credit or money off the total balance of their payday cash advance. Taking advantage of these benefits can help you save money and pay off your student loans faster.

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maybe go ta siama or maybe gota nna worse…!

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