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Government Policy on the Financing of Students in Higher Education Ministry of Education

Government Policy on the Financing of Students in Higher Education Ministry of Education

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Government Policy on the

Financing of Students in Higher Education

Ministry of Education

Background of Higher Education in Rwanda

After 1962 – there was increased need to provide training to Rwandans as most colonial administrators were leaving the country

Establishment of the NUR Enrollment at NUR was kept low over years No new HLI’s were established until late 1990’s As Enrolment increased, the Government could not

support the increasing number of students Later (in 1980’s) ideas to introduce cost-sharing

were started

Prêt bourse: Repayment by serving for minimum 5 years

Frais de memoire: repayment by paying cash

Prêt bourse: Repayment by serving for minimum 5 years

Frais de memoire: repayment by paying cash

Frais de memoire: repayment by paying cash

Frais de memoire: repayment by paying cash

Prêt bourse: Repayment by serving for minimum 5 years

Prêt bourse: Repayment by serving for minimum 5 years

NUR established: Students received grants, not loans

NUR established: Students received grants, not loans

1981 - 1987

1981 – 1987

1991 – to-date

1963

Evolution of agreements regarding re-payment of the loans since 1980 to-date

Period

Signed loan contracts at NUR and MINEDUC indicate various forms of repayment of the loans:

Serving in the Public sector for at least 5 years after graduation

Paying back the loan in cash on monthly income

Both the mechanisms above

Evolution of agreements regarding re-payment of the loans since 1980 to-date

Period

between ….and …..

Estimated no. of

students

Living allowance/Mon

th (FRw)

Frais de memoire

(FRw)

1981 (or earlier) and 1987

small no. ??? ???

1981 and 1990/1 small no. 11,000 40,000

1991/2 and 1993/4 small no. 11,000 40,000

1994/5 and 2000/1 Large no. 11,000 100,000

2001/2 & 2005 Large no. 25,000 100,000

Cumm. Total (est.) 22,500

Amount of loan issued to students at Higher Education Since 1980’s

Year when loan started (or earlier) 1980’s

Estimated no. of students who have received loans since 1980’s

22,500

Estimated amount recoverable (FRw) 12,6bn frw

Loanees automatically tracked :CSR/RRA data

8,000

Summary of loan estimates

Have any students re-paid the loan since 1980’s?

Some loan beneficiaries have probably repaid their loan either by cash or serving the public sector for atleast 5 years,

There has been no efficient loan recovery mechanism up to this day

The majority have not paid back the loan

What is the current situation

GoR sorely meets the cost to ensure basic education for all

GoR provides support to Secondary especially at Troncomun

Funding of Primary and Secondary Education

GoR meets high cost of tuition fees GoR issues loans to students for stipend,

these loans have NOT been paid back up-to-date

All students who meet the academic condition/ cutt-off mark automatically receive Government funding

There is limited or no criteria based on financial need or National priority courses

Funding of Higher Education

Increasing Access (n° of students) to Higher Education Enhancing Equity in accessing funding at Higher

Education (needy and disadvantaged students) Reducing Government budget pressure in Higher

Education Facilitating improvement in infrastructure and quality at

Higher Education Matching the skills development with the labour

market needs

Government intention

Introducing Cost-sharing

“ to shift of the burden of HE costs from being borne exclusively or predominantly by

Government or taxpayers,

to being shared with students and their parents

--- who are the major beneficiaries of higher education through private returns”.

Why introduce Cost-sharing

Law N°50/2006 of 05/10/2006 establishes and determines the responsibilities, structure and functioning of the Student Financing Agency for Rwanda (SFAR).

Legal framework

SFAR law : Article 5

“An order of the Minister in charge of higher education shall determine the criteria of awarding a loan, recovering it and the modalities through which the student who received a student loan shares with the Government the cost of education”.

SFAR law : Article 6

“ “A Presidential order shall determine the criteria of awarding a bursary and the obligations of the bursary recipient during and after studies”.

High school leavers must possess:

1. Distinction or its equivalent in:Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education

2. Grand Distinction for other optionsMust be admitted to pursue higher education in related fields

Bachelors Degree --- Masters, Masters Degree --- Doctorate degree must possess a Grand Distinction and be admitted to pursue:

Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce

Criteria for awarding bursary

High school leavers who are joining Higher education must possess a:

1. Satisfaction or its equivalent in:Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education

2. Distinction for other optionsMust be admitted to pursue higher education in related fields

Bachelors Degree holders who are joining Masters, Masters Degree holders who are joining Doctorate degree must

possess a Distinction and be admitted to pursue:

Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce

Criteria for awarding loans

Cost sharing: Science: students 25% Government 75% Others: students 50% Government 50% Based on Unit cost of 1.5M for Scinces and

1.2M for Arts

Cost sharing between student and Govt

Financial Means Testing will be used in determining the financially deserving students. It will be reviewed annually.

It assumes that not all students have the same level of ability to pay the cost of their education

A comprehensive loan application form to be used in determining an applicant’s capacity to pay for their education.

Information on this form will be keyed into the electronic FMT tool which will determine the amount of loan to be awarded to each applicant.

Financial Means Testing

A REVOLVING FUND (RF)

RF

RF

RF

Loans to Students

atHigher

Education

Donor Funding

GoRFunding

Other sources of funds

Recovered loans

Tracking former loan takers who are not Tracking former loan takers who are not in schoolin school

Numerous options…• Self declaration of loan taker – patriotic

spirit• CSR, RRA, MIFOTRA, etc tracking• Professional Associations records• Employer record verification• Individual identification

Strategies to be used in Loan Recovery

1. Kenya (HELB) : 1995 – 2005…..10 years2. Ethiopia: Graduated tax system3. South Africa (NSFAS) ..Decentralized

system4. Tanzania5. Ghana6. Australia (HECS)7. Canada: (CSLP)8. Germany, Hong Kong, China, India, New-

Zealand, Sweden, USA, etc.

Student Loans Schemes in the Region

Thank you