Education Minister Dr. Ali Haidar Ahmed revealed today that only 40 percent of student loan borrowers are currently making repayments on their loans.

This figure contrasts sharply with statistics released by the previous administration, which indicated that while over 10,000 students have taken out student loans, only about 10 percent were making regular payments.

Speaking to Parliament after being summoned to answer questions about the student loan issue, Dr. Haidar acknowledged significant problems with loan repayment. He stated that 60 percent of students are not repaying their loans, and the ministry is currently exploring options to recover these funds owed to the state.

“About 40 percent are repaying their loans,” the Minister said. “This is money owed to the state. We are consulting on necessary measures to recover state funds and will make a decision soon.”

Currently, 1,650 students are studying abroad in various countries with student loans.

According to the Minister, the Higher Education Ministry disbursed 157 million rufiyaa in student loans from January through April this year.

A previous audit of the student loan scheme managed by the Higher Education Ministry revealed significant issues. The Performance Audit Report of the Student Loan Scheme, compiled annually by the Auditor General, showed that various loan schemes disbursed 1.8 billion rufiyaa to students between 2014 and 2019. The report also indicated that the amount of overdue and unpaid student loan debt has reached 173 million rufiyaa.