- K2.26 million paid to UPNG for outstanding TESAS fees
- UPNG students begin paying outstanding TESAS fees
- UPNG lecturers plan protest today
- UPNG receives part of K12 million government funding
- Investigation into UPNG unrest 50% complete
- Case against university students dismissed
- UPNG terminates 2016 academic year
- UPNG students granted bail
- Police to enforce curfew at state universities
- DHERST has no jurisdiction in UPNG administrative matters
Establishment of a Higher Education Student Loan Scheme for Papua New Guinea in 2016
The Government of Papua New Guinea through its Department of Higher Education has budgeted for a total of K8 million in (K5 million in 2015 and K3 million in 2016) for a Student Loan Scheme. During the University of Papua New Guinea Graduation of 2015 held in April, Prime Minister Peter O’Neill stated in his speech that “Every loan that is repaid will go into the fund to continue to educate more students.” He also said “This will be topped up each year so that students can borrow and repay over the lifetime of each student as soon as he or she earns some income,”.
From a finance management perspective, student loans have a number of unique and high level risks. These risks must be properly assessed and strategically addressed. Some of the risks include:(1) How to guarantee the loan. (2) how to track students after they graduate; (3) and how to ensure repayments are commenced once employed.
At the moment work is currently being undertaken where there a number of policy options. These options generally intends to cover the following principle objectives:
- To increase enrollment access to the higher and technical education sector by providing financial support in the form of loans to full-time enrolled H&TE students.
- To allow for a more equitable access of enrollment within the higher and technical education sector by focusing financial support in the form of loans for full-time enrolled students who are geographically disadvantaged.
- To increase the number of graduates into strategic economic sectors by focusing financial support in the form of loans on full-time enrollment students to priority study areas of the higher and technical sector.
It is recognized that there are challenges faced particularly in PNG where the financial structures are still developing. In the first instance tracking of citizens is a challenge, particularly in a ‘dual’ economic system where the informal sector maintains a larger role. The commencement of a National ID system provides a starting point for establishing a ‘system’ of sorts but in the meantime these challenges remain.
Policy framework options are currently centered around partnering with savings and loans societies as well as banks. Discussions are planned to take place with IRC. Views and opinions are currently open here and can be sent directly toMSteven@ohe.gov.pg