Govt should suspend all repayment of TELS loans for the next 5 years until the economy improves – Prof. Prasad

A call has been made that the Government should suspend all repayment of TELS loans for the next five years until the economy improves sufficiently.

National Federation Party Leader, Professor Biman Prasad says if Government can justify its huge debt portfolio by saying it has obtained long-term loans at concessionary terms of up to 40 years, it is only fair that our financially stricken students, young graduates and their parents are given at least 5 year repayment holiday.

Professor Prasad made the comment following the announcement of plans by the Ministry of Economy and Tertiary Education Loans and Scholarship Service to negotiate with financial institutions to provide loans to students to enable them to pay 50 percent of their debt and clear their TELS loans.

He says it is an election gimmick that is doomed to fail because it will neither salvage TELS from its failed policy implementation nor help financially-stricken students in any way.

The NFP Leader questioned Government how will students be able to obtain loans from financial institutions to clear TELS loans when they don’t have meaningful employment.

He asks who will guarantee their loans, will it be government or will parents, guardians or those who already signed the initial TELS loan guarantees will be asked to provide securities or guarantees to the financial institution.

Professor Prasad says the reality of the matter is that TELS has been hopelessly managed.

He says many deserving students have been denied the opportunity to obtain loans for their preferred course.

Professor Prasad says for example, MBBS students entering the program through Foundation have been denied both scholarships and loans, which is thoroughly discriminatory.