Administration fee of student loans decreased to 1 percent; repayment period increased to 20 years

The administration fee for student loans has been decreased to one percent and the loan's repayment period has been lengthened to 20 years, states President Ibrahim Mohamed Solih.

President Solih made the statement during his fifth presidential address, delivered during the inaugural sitting of the People’s Majlis on Monday.

In his address, emphasized that a nation's most crucial investment is in the education of its youth. As such, noting that the opportunity for higher education was not available in all of the atolls, when he took office, President Solih stated that students can now pursue higher education in all of the atolls of the country.

President Solih went on to say that the administration’s free degree program was the best decision made by his administration to build a new productive generation. As such, he noted that the youth of the country now have the opportunity to earn their first degree for free.

Highlighting that the number of students applying for the student loans to pursue higher education abroad, the President said that the administration has drastically increased the number of loans they issue. President Solih stated that a total of 1,986 students have been provided with the loans so far.

The President noted that the student loans have been restructured. As such, the administration reduced the administration fee from five percent to one percent and increased the repayment period to 20 years.

President Solih stated that the amount paid for the loan so far has been deducted from the total amount of the loan, with the changes brought to the fee.

Furthermore, noting that their still are concerns of students have previously taken student loans, President Solih stated that his administration will work on attending all of such concerns raised by the youth.

The President in his address also noted that the administration has been working on bringing out more than 6,000 capable youth into the workforce. As such, he noted that Junior Colleges, TIVET Institutions and Polytechnic Centers are being established all around the country.