New recommendations to roll out eighth stage of interest-free student loan scheme

The Cabinet of Ministers on Monday approved recommendations on revising fees payable to non-Governmental higher education institutes for the relevant courses provided under the eighth stage of the interest-free student loan scheme. 

The new recommendations include: 

• To revise course fees from the eighth stage of the interest-free student loan scheme as per the recommendations of the Technological Consultative Committee appointed by the Education Ministry.
• To obtain the collaboration of the National Savings Bank, in addition to the Bank of Ceylon and People’s Bank, for the above loan scheme to minimise the financial risk bearable to one bank.

*To implement the loan scheme subject to a minimum loan interest rate of 13% and six months AWPLR+1% percentage, having conducted an annual review. 

*To enrol 7,000 students per stage from the eighth stage of the student loan scheme.The interest-free loan scheme was introduced in 2017 for students to follow degree programs conducted by non-Governmental higher education institutes.

On 24 April 2023, the Cabinet approved appointing a committee, under the chairmanship of the Deputy Secretary of the Treasury, to submit recommendations with respect to revising fees payable to non-Governmental higher education institutes for relevant courses under the said loan scheme. 

The proposal to this effect, presented by the Higher Education Minister, was approved by the Cabinet of Ministers.