Categories: Business

ZCTU questions Govt’s strategy to recover K12m student loans

The Zambia Congress of Trade Unions (ZCTU) has challenged the Ministry of Higher Education to explain clearly how they intend to recover the loans from the former University of Zambia and Copperbelt University students who benefited from the scheme.

Government is projecting to collect K12 million by December this year from loan recoveries owed by 4,000 former students of three public universities.

The estimated 4 thousand students currently employed by government are from the University of Zambia (UNZA), Copperbelt and Robert Makasa Universities.

ZCTU Secretary General Cosmas Mukuka what kind of contracts were entered into with the said students for them to have access to the bursary support which the Ministry is now demanding a repayment.

“The Ministry should be sensitive to the plight of people before making certain demands from graduates who benefited from the said loans. If students signed for these loans, what were the terms and conditions for repayment, and when would repayments begin and how,” he questions.

He says the Zambia Congress of Trade Unions is demanding answers to these critical questions and the union further wonders how the Ministry of Higher Education will manage to conduct an audit to determine which former students are in employment and those who are not.

Mr. Mukuka says it is common knowledge that majority of former students from these two universities are still searching for jobs and Government would do well to first create job opportunities for such people before asking them to pay back loans.

“As things stand, the Ministry of Higher Education has not even sensitized stakeholders on how the system will capture those who have gone into productive and sustainable employment and will be able to pay back the student loans. The notice is simply a general demand which fails to address the main objective and benefits of student loan repayment by beneficiaries student loans,” he adds.

The ZCTU SG says a clear distinction must be made between former students in employment and those still searching for employment in order to avoid unnecessary persecution and prosecutions on those who will fail to pay back.

Mr. Mukuka says the notice from the Higher Education Loans and Scholarships Board (HELSB) would only be supported if guidelines and the objectives are clearly made public.

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