Establishment of a Higher Education Student Loan Scheme for Papua New Guinea in 2016

By on December 4, 2015

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:

  1.  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.
  2. 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.
  3.  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

Steven Matainaho

Steven Matainaho

acting Executive Manager - Sector Funding at Department of Higher Education, Research, Science & Technology
Marketing Communications and Strategic Management Specialist and has a Masters from Wuhan University of Technology in China.
Steven Matainaho

About Steven Matainaho

Marketing Communications and Strategic Management Specialist and has a Masters from Wuhan University of Technology in China.

4 Comments

  1. Eddie Kops

    December 6, 2015 at 2:42 am

    Does it Carter for studies to study overseas to persure graduate level studies? i need to know please!

  2. Scholarships Abroad

    December 10, 2015 at 2:46 pm

    This scholarship is good for those students who can not meet the required fees the institutions they enroll. Students can also apply for other scholarships such as New Zealand Scholarships

  3. Melissa Kamilus

    December 15, 2015 at 10:34 am

    Interested in the New Zealand and Chinese undergraduate scholarships ,please need more information.

  4. IVAN KAK (Mr.)

    December 23, 2015 at 12:55 am

    I’m interested in the New Zealand, Australia, North Korean Government and other overseas Scholarships but I have a doubt if there is any Scholarship opportunity for current Graduate Students from PNG Universities.

    Concerned and need more help with information.

    Regards.

    Ivan KAK
    UNITECH GRADUATE STUDENT

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