The Minister for Higher Education, Labour and Skill Development, Dr Ali Haider Ahmed, stated that only 40 per cent of Maldivian students studying abroad are repaying the Government-issued loans for higher education.

He made the comments while responding to a question from Fuvahmulah South MP Ibrahim Hussain regarding whether student loans are being repaid in accordance with existing regulations.

Minister Dr Haider noted that the Government had disbursed MVR 157 million in student loans between January and April of this year. He further remarked that the loan repayment process continues to face significant challenges, with many students failing to meet their obligations.

He emphasised that the funds in question belong to the state and assured that the Government would soon take necessary steps to ensure the recovery of outstanding loans.

Minister Dr Haider added that loan recipients are required to begin repayment six months after completing their studies. However, the repayment compliance remains unsatisfactory, which, he noted, is a growing concern for the Ministry.

Regarding policy reforms, it was highlighted that President Dr Mohamed Muizzu has mandated that all student loans align with Islamic financial principles. As part of this directive, the 1 per cent administrative fee previously charged on loans has been removed. Moreover, the President has ruled out the imposition of any additional fees beyond the sanctioned loan amount.

Students have also been instructed to recalculate their loan balances by deducting the administrative fees already paid by previous borrowers.

In a related development, the Ministry of Higher Education, Labour and Skill Development compiled a list in April last year of Maldivian students studying abroad, inclusive of those on scholarships and Government-backed loans. By December, over 2,000 students had registered on the list, comprising 915 males and 1,201 females.

Under the current student loan scheme, individuals are permitted to study in a country of their choosing, provided the field of study addresses critical skill gaps within the Maldives.