The education sector in Sri Lanka, be it general education or Higher Education (HE), has been in the spotlight lately for all the wrong reasons.
However in July, ads started to pop up on national newspapers announcing the issuance of the Interest-Free Student Loan Schemes (IFSLS) for eligible individuals who are interested in continuing their higher studies in Non-State Higher Education Institutes (NSHEIs).
The programme is not new and this year it allowed its seventh intake consisting of students who had completed their GCE A/Levels in 2019, 2020, and 2021 to enjoy the IFSL facility and apply to enrol with NSHEIs that offered a degree programme of their choosing.
IFSL programme
According to Ministry of Higher Education (MoHE) Students Loan Scheme Division Director Chandima Janaki, the IFSL programme was initiated in 2017 following a Budget proposal to increase higher education opportunities for the student community with the partnership of NSHEIs.
“In 2017 we had 250 students who qualified for the interest-free student loan scheme that was accepted to the NSHEIs that were onboard with us. As you know, each year, we have around 300,000 students sitting for the A/Level exams out of which about 200,000 pass the exam with the necessary marks to enter university. However, our State universities only accommodate 45,000 freshmen each year due to limitations of capacity. Therefore, this initiative was introduced to improve the chances of youth continuing their higher studies,” Janaki explained.
Accordingly, the Government provides an interest-free loan for students subject to a maximum loan amount of Rs. 800,000 for pursuing degree programmes which are approved by the Ministry of Education with higher market demand and professional value. Further, an interest-free loan subject to a maximum amount of Rs. 300,000 can be obtained by the students to cover additional expenses.
The Government will pay the interest on behalf of the students and the capital outstanding should be paid by the students within seven or eight years after completing the degree of three or four years with another one-year grace period.
The technicalities
Ministry of Higher Education Students Loan Scheme Division Assistant Director Wasana Premarathne joined in to explain the technicalities of the IFSL programme: “Applying for the student loan is easy, all you have to do is visit the www.mohe.gov.lk and click on the menu tab and select Student Loans. Then enter your A/Level exam index number and your National Identification Number to commence the application process. You should also download the student guidebook through http://studentloans.mohe.gov.lk, which provides all the necessary information on how to apply for the loan and the courses offered by each institute onboard with the scheme.”
Premarathne stated that with the backlog that had accumulated due to the crisis and pandemic, this year there had been a delay in calling for applications.
“We called online applications from 4 July with a deadline set to 7 August. Although our initial target was to allow 15,000 students the opportunity to qualify for the loan, the number of applicants who qualify for the loan has always been far less. It was during the sixth intake that we had the highest number of qualifying applicants at 4,664.”
Minimum qualifications
Given that the scheme has successfully seen six student intakes, the Ministry of Higher Education, following the feedback and student experiences this year, had to amend the minimum qualifications to include English language proficiency for the students who are applying as well.
Explaining further, Premarathne stated: “The course content at these NSHEIs is delivered in English. Over the past few intakes, we observed that some students struggled to comprehend the subject material and were on the verge of abandoning the degree. Hence, they must have language proficiency to be qualified to enter these institutions as well.
“If you are looking to continue your higher education at any non-State higher education institute within the country, we suggest that it will be favourable for you to follow an English course. This will help you to avoid difficulties that you will face after enrolling in these institutions.”
For prospective students who intend to apply for the IFSL scheme for the next intake, the MOHE advises that they read through the guide and apply to as many degree programmes as possible. That way, based on their qualifications, the chances of getting selected by one or more institutes will increase.
“Even if you do not have the preferred subject mix in your degree, remember that you can follow your specialisation during your post-graduate studies or when reading for your PhD. Most often, the degree programmes are interconnected with different subject matters. Treat your first degree as the foundation for your tertiary studies,” Premarathne advised in conclusion.
Interest-free student loan schemes
