Education Minister clarifies TELS and TSLS debt concerns

Minister for Education, Aseri Radrodro has clarified concerns regarding the increased amounts owed by recipients of the Tertiary Education Loans Scheme (TELS) and the Tertiary Scholarship and Loans Scheme (TSLS), highlighting that the confusion may stem from differences between the two schemes.

While giving his response to an oral question, Radrodro explained that TELS is a loan scheme where students are required to repay the amount owed, while TSLS is a scholarship scheme that does not require repayment unless students fail to meet bond conditions.

He emphasised that students under the TSLS scheme are expected to serve Fiji through paid employment after graduation, and penalties are only applied if they breach the bond conditions by failing to fulfill their service period.

The Minister clarified that the penalty system was put in place to maximize the return on government investment in education and ensure that graduates contribute to filling Fiji's skills gap.

He also highlighted the government's decision to write off TELS debt for more than 53,000 students in the 2023/2024 National Budget, relieving them of a $650 million loan balance.

Despite Radrodro's explanation, Opposition members expressed frustration over the rising amounts owed by some students, which appear to differ from the amounts originally agreed upon.

Opposition MP Semi Koroilavesau says many students who signed up for TELS assistance are now being told they owe much higher amounts than expected when they reach the border.

Radrodro requested the MP to provide the details of the matter.

Opposition MP Rinesh Sharma questioned why students were now being charged interest, despite the initial agreement having no interest provision.

He says there were concerns from students who were being charged up to 40% interest on their loans, raising concerns about the fairness of these charges, especially for low-income graduates.

In response, Radrodro denied that interest was being charged on current loans and suggested that the issue may relate to penalties for breaching bond conditions, not interest accumulation.

Opposition MP Alvick Maharaj inquired about the impact of the PALMS program on graduates who wish to work overseas for a period before returning to Fiji.

Radrodro says there are provisions for students who wish to take part in such programs, and further details could be obtained from the TSLS online portal or office.

Opposition MP Hem Chand questioned on the scholarship criteria in relation to repeating students.

Radrodro clarified that the criteria is addressed in the TSLS guidelines, which apply to both first-time students and those repeating with special considerations.

Opposition MP Parveen Bala raised concerns about the visa application process for students, questioning if the government had engaged agencies to assist with this.

Radrodro says discussions were ongoing adding that if Bala had raised the issue earlier then he might have gotten the information from TSLS.

Independent MP Ketan Lal asked whether students were consulted or informed before these increases or penalties were applied to their TSLS accounts.

In response, Radrodro says consultation had always been part of the budget process and that the government had taken necessary steps to ensure fairness and transparency in the application of the penalties.