HIGHER EDUCATION STUDENTS' LOAN

TRENDING UPDATE

While the ACT Wazalendo Party has stated its intention to go to court to challenge the changes to the Credit Board Act 2016, the Ministry of Education has asked the Board to provide clarification on complaints lodged by debtors.

 For its part, the Board (HESLB) said it was enforcing the law as it was approved by Parliament and that the alleged deduction rates were set by involving stakeholders, including trade unions.

 However, HESLB did not name the parties involved in the process, although the Tanzania Confederation of Trade Unions (Tucta) has denied involvement in the deduction process.

 Among the complaints lodged by the debtors is the increase in the deduction of the loan from 8 percent to 15 percent per month from the gross salary of the debtor / beneficiary.

 The others are a Value retention fee (VRF), a 1% Loan Administration Fee and a 10% penalty for a debt owed to a debtor who is late for 2 years after graduation college.

 As a result of the complaint, ACT Wazalendo said it had written a letter to the Ministry of Education and HESLB stating its intention to go to court to challenge the change in the law.

 "On January 20, 2021 Secretary of the ACT Wazalendo Youth Fort, Mwanaisha Mndeme wrote a letter to the Ministry of Education and copied it to the Office of the President-State House (through the Principal Secretary), the Prime Minister's Office and HESLB," the statement said. ACT.

 But speaking to Mwananchi yesterday by phone, Dr Akwilapo said he had not received the letter.

 "If it is a matter that has not been clarified in parliament and even the Board (HESLB) has provided clarification, they should seek an explanation," said Dr Akwilapo.

 When asked about HESLB's statement that they are implementing a law passed by Parliament, Dr Akwilapo insisted; "The law started with the board, they should seek an explanation, even I have."

 A statement issued by the ACT Wazalendo Youth Center stated: “These standards or deductions prevent young people from taking any action. It is also contrary to our constitution of the United Republic of Tanzania Article 23 (1) which requires a person to earn a living wage, ”the statement said.

 In addition to the size of the deductions, the report said some applicants entered into an agreement with HESLB to cut 8 percent but after changing the law, they are now being cut 15 percent.

 "Why should the Government change the law that violates the contract / agreement without notice, opinion or consultation with debtors or beneficiaries?

 In addition to ACT Wazalendo, Samuel Ngulinzira, one of the debtors who spoke to Mwananchi by phone yesterday said he had entered into an agreement with HESLB to cut 8 percent, but is currently being cut 15 percent.

 "I started college in 2013 and my contract said I would be cut 8 percent, but after finishing school in 2016, the law has changed now I am cut 15 percent," he said.

 "We have complained to the board, we have complained about 6 percent, 1 percent and 10 percent deductions, but the board says it is only enforcing the law.

 "We plan to go to parliament to complain," he added.

 Regarding the 6 per cent loan value (VRF) levy, the ACT has said it is unrealistic.

 "This is not right because the depreciation of our money for the year cannot be six percent, this is a very high rate. There is also the secrecy and ambiguity of the analysis of how to get that 6 percent, ”it said.

 Speaking by phone yesterday, HESLB's Head of Communications, Omega Ngole urged the complainants to read their contracts carefully.

 "Initially the Act gave the Government the power to set the deduction rate and change it at any time. The change in the law of 2016 has come with many things, firstly it has automatically set the rate of 15 percent so the Government cannot change it until it returns to parliament, ”said Ngole.

 He also said the changes would extend the grace period from 12 to 24 months. "If anyone or institution has a comment, it should be submitted to the CEO of HESLB or the Ministry and we will work," said Ngole.

 Tucta's response

 “Trade unions have never been involved in such changes. The contractors were students, so how do the unions get in there? ” questioned Tumaini Nyamhokya, president of Tucta as he claimed to have been asked the same question by many.

 "It's true that even the issue hurts us, but don't burden Tucta. We have been saying it and we have advised able-bodied people not to get into the loans as it is no longer helpful, ”he added.