President Dr Mohamed Muizzu on Thursday announced the necessity of restructuring student loans for higher education and training, both domestically and internationally, to ensure compliance with Shariah principles.

In a post on his official X account, the President stated that the Ministry of Higher Education, Labour, and Skills Development has been directed to ensure that loans provided for education and training abroad are structured in a manner that eliminates interest and adheres strictly to Shariah principles.

In this regard, he declared that the existing 1 per cent administrative fee currently collected alongside loan repayments will be completely removed. Additionally, he also instructed the recalibration student loans repayments for past students by removing the administrative fees from the loan amount owed.

The Government periodically announces student loan schemes to support higher education both domestically and internationally. In line with its ongoing efforts to expand access to higher education, the Ministry of Higher Education, Labour, and Skills Development sanctioned loans for over 1,000 students last year.

Additionally, in April last year, the Ministry prepared a list of Maldivian students studying abroad including scholarships and Government-backed loans. By December, more than 2,000 students had registered on this list.