BY Sumudu Chamara Courtesy The Morning

• Students/parents welcome the Govt. plan whilst raising concerns on the conditions for loan repayment and queries whether it is tailored for students’ needs and capacities
• Simultaneously the public urges on preventing brain drain   

Although the Government’s plans to resume the Government provided interest free loan scheme given for those who wish to study in private universities is a step in the right direction, how successful that would be in the current economic context is a concern. To ensure that this plan in actuality helps students, some feel that the Government should hold discussions with them to understand their interests first.

These concerns were raised by several students who are to sit for the General Certificate of Education Advanced Level (GCE A/L) Examination and are pursuing higher studies in public and private universities. They are of the opinion that even the best of plans would not bear fruit, unless those plans are designed to suit the needs of the targeted beneficiaries. Speaking to The Daily Morning, parents too raised implementation related concerns, while welcoming the Government’s plans which, according to State Minister of Finance Ranjith Siyambalapitiya, will involve the provision of interest free loans of Rs. 900,000 for studies and Rs. 300,000 for the daily expenses of students which students could repay without an interest within two years after the completion of the studies.

Practical sensible plans

This is a good decision and will certainly be a good investment for the country’s future. This will help thousands of students that do not get an opportunity to enroll in public universities despite meeting the requirements, parents who are struggling to bear education related expenses of their children, and even the country’s economy in the long run. However, I think that the time period that will be given to repay this loan, although it is interest free, is not at all sufficient,” 44-year-old father of two children sitting the GCE O/L and A/L exams in the next few years, Chandra Kapila said. He opined that in the current economic climate, repaying a student loan, even if it was half the abovementioned amount, within two years, would be quite difficult, and that therefore, the Government should extend that period, at least on a case by case basis. Kapila explained: In this economy, it is difficult even for an educated person to find a decent job immediately after completing higher education. On one hand, we are living in a time where the job market is shrinking, and on the other, many jobs require some level of experience which fresh graduates do not have. It is a simple fact that it is difficult for a fresh graduate to find a job that pays enough to repay student loans within two years while also covering their expenses. The Government should take these real life issues into account, if it actually wants the youth to benefit from this programme, and provide exceptions for at least those who cannot find jobs immediately after completing their higher education.”

Similar sentiments were shared by a 17-year-old GCE A/L student who wished to remain anonymous, who said that although the amount of money that the Government is ready to provide as a loan is adequate to pursue a useful higher education qualification that has a demand in the job market, the Government should evaluate the possibility of repaying such an amount within two years. People have had to spend most of what they earn for daily expenses. In such a situation, even if one gets a job, how can they allocate money to repay such a big amount within two years? In my case, I am the only child in my family, and when I find a job, I have to contribute to my family’s expenses. Therefore, I am unlikely to be able to repay such an amount within two years, and I don’t want to obtain a loan that places an additional burden on me. I would rather find a part time or freelance job to cover higher studies expenses.”

Several persons, including GCE A/L students, raised concerns as to what would be the consequences if a borrower fails to repay the loan within the stipulated time, which they pointed out was inadequate. 

Collaborative efforts

Many who spoke about the Government’s plan, admired it, adding that if implemented correctly, it would be immensely helpful in creating an educated next generation, which they said would help revive the country’s economy, the latter being the most pressing need at present. However, in addition to the time given to repay loans, there are other concerns that require attention to ensure that the student loan scheme would be a success.

In this regard, 52-year-old mother of three, Srinath Kankanam said: This is good news, especially for the economic crisis affected middle class people like us. I think that this scheme should have received more attention in the first place and should have improved over the years. However, considering the country’s situation, in which educated and talented people can be extremely useful, I think that the Government would continue this programme at least this time. However, it has to be student friendly, and for it to be student friendly, I think that the students’ concerns should be obtained and evaluated. For example, some students may want to follow courses that are offered by foreign universities that do not have a branch in Sri Lanka. How friendly would this loan scheme be in such a situation is a matter that needs to be discussed.” She added that at the end of the day, how student friendly the loan scheme is will decide how many students obtain and benefit from this scheme, and how beneficial it will in turn be to the country’s economy.

Some however raised concerns about the importance of the Government making the applicable conditions strict, so as to ensure that those who benefit from this loan scheme do not leave the country at least for a few years. Their argument was based on the importance of the country being able to benefit from the knowledge and skills of those who obtain student loans.

Thirty-five-year-old father of one W.A. Suraj (name changed on request), added: The country is not in a position to waste money. I think that we need to realise the fact that student loans are both a social service and an investment. They support those who are in need of financial assistance, in the hope that the country would receive the beneficiaries’ support in the future. Sri Lanka is in need of both these types of support. I think that the Government should impose a condition preventing the beneficiaries of this loan scheme from leaving the country for jobs at least for several years, so that the country will benefit from their knowledge and skills. Otherwise, other countries will benefit from this programme more than Sri Lanka will.” In response to a question on a person’s right to choose a job in a location that they prefer, Suraj added that it is to respect that right that he suggests that the said condition be imposed only for a few years. Elaborating on his opinion, he added that students should be considerate about their responsibility to support the country’s economic revival, especially when they have received the support of the public through student loans which are made available through the revenue generated from taxes, he added that the country’s tax payers also have a right to benefit from their tax money in some way.