Following serious concerns raised over reports that more than 33,000 scholarship recipients have failed to complete their studies or had their awards terminated, the Tertiary Scholarships and Loans Service says the 33,070 students recorded under scholarship non-completion since 2014 should not all be classified as academic failures.
TSLS says the category includes students who chose to terminate their awards, discontinued their studies or absconded.
It says the estimated $235.4 million associated with non-completion should not be assumed to have been misappropriated or to be irrecoverable, as students are still required to provide service to the country for the bond duration based on the years of study.
In a statement, TSLS says it recognises the public's right to scrutinise the use of taxpayers' funds and that the historical figures presented by the Minister for Finance during the launch of the TSLS Strategic Plan 2026–2031 on 29th October must be considered in their proper context.
It says the information was compiled and disclosed in good faith and transparency, following a comprehensive consolidation of scholarship records undertaken since January 2026.
It says the Ministry of Education formally submitted the information to Cabinet in September 2026, using consolidated data as of 31st July 2026.
TSLS says it is not disputing the historical figures but is explaining their basis, limitations and the measures being implemented to address the underlying issues.
The consolidated historical data shows that 90,131 students have received Government sponsorship since TSLS commenced operations in 2014.
Of this number, 33,546 students have graduated, while another 839 have completed their studies and are awaiting graduation.
A further 22,676 students are recorded as active, while 33,070 are listed as terminated, absconded or not completed.
TSLS says the total Government investment to 31st July 2026 stands at $1.418 billion.
It says that of the total investment, approximately $843.1 million was paid directly to tertiary education institutions for tuition fees, while $574.9 million was disbursed through student allowances.
It says the estimated $235.4 million associated with non-completion was calculated using study costs for the students concerned for the duration of their study.
It adds that this figure estimates the historical investment associated with students who did not complete their studies.
TSLS says even if students do not complete their programme, they are still required to provide service to the country for the bond duration based on the years of study.
It says it does not terminate students arbitrarily, and that non-completion and non-performance often result from students' own decisions to discontinue or withdraw from their programmes.
It also clarifies that the historical figures do not represent final outcomes for the 2026 academic year.
TSLS anticipates approximately 6,000 additional students will graduate or receive their qualifications in December 2026 and during the first quarter of 2027, subject to academic completion requirements and graduation schedules established by the respective tertiary education institutions.
It says a number of students who had previously discontinued or interrupted their studies are now returning to resume and complete their programmes.
It says these outcomes will be progressively incorporated into the consolidated database following verification and reconciliation to avoid double counting.
Meanwhile, TSLS says the Coalition Government's decision to convert approximately $650 million in historical Tertiary Education Loans Scheme debt into scholarship bond arrangements under the 2023–2024 National Budget benefited more than 53,000 students and families.
It says the conversion did not remove eligible beneficiaries' obligation to contribute to Fiji, instead, it replaced monetary repayment obligations with national service requirements under applicable scholarship bond conditions.
It says recipients are required to fulfil their obligations through qualifying employment, economic activity or other approved forms of service in Fiji.
TSLS says certain categories of loans, including specified in-service and Public Service Commission loans, were excluded from the conversion and remain subject to their original repayment requirements.
It says it has also identified instances where former scholarship recipients were permitted to travel overseas under agreed payment arrangements but subsequently failed to honour their repayment commitments.
It says it is strengthening the monitoring of payment agreements, outstanding balances, overseas travel records and compliance with bond conditions.
TSLS says where recipients default on their agreed arrangements, further recovery action may be considered, including approaching guarantors who have legally enforceable obligations under the relevant scholarship agreements.
It says any decision to pursue guarantors or undertake additional enforcement measures will be subject to the applicable legal framework, contractual obligations and higher-level ministerial and Government decisions.
It says it has collected more than $8 million for the State over the past 12 months through its collection and recovery activities.
Meanwhile, TSLS says it has undertaken a major programme since June 2026 to digitise more than 60,000 historical scholarship files, these records include manual files from the former Public Service Commission and the Multi-Ethnic Affairs and Fijian Affairs Board scholarship arrangements, some dating back to the late 1980s.
It says the programme involves scanning, cataloguing, verifying and integrating historical information into modern scholarship management systems.
It says this will improve its ability to verify historical scholarship expenditure, monitor graduate employment and bond obligations, strengthen audit trails and financial accountability, and track long-term scholarship outcomes.
TSLS says it has also strengthened its engagement with tertiary education institutions through formal Letters of Agreement since January 2026.
It says agreements with the University of the South Pacific, Fiji National University and other tertiary education institutions have established a framework for closer cooperation in academic monitoring, student support and institutional reporting.
TSLS says it has introduced weekly learning enrichment sessions, group counselling, individual academic support and direct engagement with students placed on probation or suspension.
It says students at risk of failing are being identified earlier through cooperation with tertiary education institutions.
It says under the revised framework scheduled for implementation in 2027, students on first probation will continue to receive tuition and allowances but must participate in counselling and appropriate academic support.
It adds that students on second probation will continue to receive tuition support, while allowances are withheld until they achieve the required academic performance.
TSLS says mandatory counselling and remedial interventions will continue.
It says students who fail to improve following two consecutive probation periods may have their sponsorship suspended.
It says reinstatement remains available subject to meeting the required academic standards and applicable policies.
TSLS says it has also changed how it disburses student allowances in response to a large number of students dropping out of their programmes after receiving their allowances.
It says previously, allowances were generally provided in two instalments, while the revised policy provides for four instalments of 25 percent each during the relevant academic term.
It says this approach aims to promote financial discipline, provide more consistent support throughout the study period and reduce the risk of allowances being exhausted prematurely.
Meanwhile, TSLS has also highlighted concerns raised by graduates regarding access to employment opportunities in Fiji.
It says it has received complaints that some employment opportunities are being filled through overseas recruitment arrangements, including cases where employers have pre-arranged contracts with foreign workers.
Graduates have questioned whether TSLS is giving sufficient consideration to qualified Fijians seeking entry into the workforce.
TSLS says these concerns require proper examination, especially for technical and vocational education and training graduates.
It says it recognises the contribution of foreign workers where genuine skills shortages exist. However, the country's scholarship investment must also be supported by employment policies and recruitment practices that provide fair opportunities for suitably qualified local graduates.
It says an initial FNPF-linked analysis of 7,528 graduates from the preceding three years identified 3,540 recorded as employed, 1,323 with FNPF records but not recorded as employed, and 2,665 without identified employment records.
TSLS says these figures require continued verification and should not be treated as a definitive measure of national unemployment.
It says the findings demonstrate the importance of closer coordination between education funding, labour-market planning and employment opportunities.
It says its Strategic Plan 2026–2031 places digital transformation and student outcome monitoring among its major priorities.
It adds that work is underway to strengthen scholarship information systems, online services, student records and institutional reporting capabilities.
TSLS says the introduction of the MyTSLS Hub and associated digital improvements is intended to provide more efficient access to student services while improving internal monitoring and administrative processes.
It says it is also progressing systems integration and formal cooperation arrangements with relevant agencies, including the Fiji National Provident Fund, Fiji Revenue and Customs Service, Department of Immigration and Higher Education Commission of Fiji.
These arrangements are intended to strengthen graduate employment tracking, bond compliance, student verification and information sharing, subject to applicable legal and data protection requirements.
TSLS acknowledges that historical scholarship non-completion represents a significant concern for the Government and taxpayers.
It says it does not claim to have resolved all historical issues but will continue reviewing historical outcomes, publishing appropriate information, strengthening its systems and reporting progress against the objectives of its new Strategic Plan.
TSLS says its responsibility is to ensure that public funds are properly managed, scholarship recipients receive the support they require, and Government investment produces measurable educational and national development outcomes.
