$100m Loan Facility For Students
Tertiary students can now access $90 million in loans to pay fees from the beginning of this semester, while an additional $10 million will be released next month.
Previously, loan schemes had been stopped due to non-repayment, but the new scheme is being run by CBZ Bank with Government guarantees.
The Government expects the bank to follow up and ensure beneficiaries repay the loans.
Those needing financial assistance should get loan forms from their college or university before the opening of the semester.
This comes after the Government directed universities not to charge over $5 000 in fees per semester, while polytechnics and teachers’ colleges have been directed to charge fees below $1 300 for certificate and diploma programs.
Higher and Tertiary Education, Innovation, Science and Technology Development Minister Professor Amon Murwira confirmed the loan arrangement.
“We have reintroduced a loan facility which was stopped long back,” he said.
“We have capitalized it to $90 million as we speak. We want to make sure that by February, it will be $100 million which is available for those students who might not afford fees. But you can see our fees are cheaper than those charged at high schools.”
Minister Murwira said the loans, structured according to fees and need, will be disbursed by CBZ Bank branches countrywide.
“We held a successful meeting with the CBZ Bank officials on Wednesday this week on the modalities of the student loan facility,” he said.
“They are now finalizing on the technical aspect of how the funds can be disbursed. Once that is done, the process will begin.”
Prof Murwira said colleges will advise their students when to collect application forms.
“We held a meeting with the administrators from tertiary institutions and I advised them to make an immediate arrangement with CBZ Bank so that students will apply for the loans before the opening of the first semester,” he said.
“The arrangement is that; the colleges will secure the application forms on behalf of their students from the bank, while the students will get them from their institutions.
“We made the arrangement after realizing the need for students to apply before the opening of the first semester so that they pay fees on time, which will help in the day-to-day running costs of the institutions.”
The minister urged students to apply for loan facilities from other banks.
“The loan facilities from the private players are still available,” he said. “The Getbucks, CBZ, POSB, and ZB are still on, so nothing has been closed. The facility with the private players is a private arrangement between the financial institution and the student upon providing required documentation.”
Tertiary institutions are set to open next month and some of them heeded Government’s directive not to increase fees for the coming semester without approval.
Great Zimbabwe University (GZU) director of information Mr Anderson Chipatiso said he was not at liberty to comment or release fees structures.
“I cannot comment right now,” he said. “We are waiting for the Government directive.”
The National University of Science Technology (NUST) proposed $2 100 for the Faculties of Commerce, Communication and Information Sciences, and Science and Technology Education, while the Faculty of Medicine will charge $5 000.
There are additional levies, supplementary examination fees, and deferred special examinations, which vary from one department to the other.
The proposed fees for the University of Zimbabwe (UZ) ranges from $3 500 to $8 325 for Social Sciences, and the Faculty of Medicine, respectively.
There are other additional expenses such as sports levy, student union levy, student development levy, and medical cover, among others.
Tertiary students commended the Government intervention to cap fees at $5 000, and the reintroduction of loans.
UZ Student Representative Council vice president Wilbert Muzaruwetu said Government’s intervention was a welcome move, but steps should be taken to ensure the loans were accessible on time.
“There are costs associated with tertiary learning such as transport, accommodation, medical aid, food supplements on campus, among others,” he said.
“Not all students secure accommodation at the campus, hence non-resident students need money to pay rent, transport, food, among other facilities. The loan facility should be enough to cover all the necessities.”