Uncertainty ends over UG student loans

− Govt clears funding for increased tuition

Government has approved additional funds for the University of Guyana Student Loan Fund to facilitate the increase in tuition fees that will take full effect with the commencement of the new academic year 2014/2015.

During the 2014 Budget presentation in March, Finance Minister, Dr Ashni Singh disclosed that Gy$450 million was budgeted for the Student Loan Fund but by April, this sum was reduced to zero after the A Partnership for National Unity (APNU) and Alliance For Change (AFC) signalled their collective disapproval.

The Opposition had taken this course of action after the Student Loan Fund was lumped with items it had deemed objectionable. Their decision, however, was made before the University’s Vice Chancellor, Professor Jacob Opadeyi announced the hike in tuition fees.

Estimates

By June, the Finance Minister had moved to the House with a Statement of Excess on the Current and Capital Estimates totalling Gy$4.5 billion for the period ended June 16.

This sum included Gy$225 million for the Student Loan Fund.

On Wednesday, Minister Singh disclosed that the Government has taken a decision to provide additional funds to cater for the increase in tuition fees.

His announcement came one day after Cabinet concluded deliberations on the matter, having examined it exhaustively.

As a result of the decision, Minister Singh has given directives for the Student Loan Agency to commence the processing of loan applications immediately for the 2014/2015 Academic Year.

In July, the University’s Administration Council adjusted fees applying to both new and continuing students who are pursuing programmes which previously attracted a fee of Gy$127,000.

Students are now required to pay an incremental increase beginning with Gy$130,000 in 2014, Gy$145,000 in 2015 and Gy$160,000 in 2016, in addition to the Gy$50,000 Facilities Fee. The new Guyanese students who will be commencing study from September will be required to pay Gy$210,000, inclusive of the Facilities Fee for most programmes.

In 2013, approximately 40 per cent of the student population acquired loans; however with the increase in tuition, this figure is expected to skyrocket.

Finance Minister, Dr Singh however made it clear that the loans granted to finance tuition fees will not include the new Facilities Fee which totals Gy$50,000 per year. The Facilities Fee replaces the Miscellaneous Fee which was historically paid by students outside of the student loan arrangement.