Student loans pay off for Moresby government

Development

By Brain Tobia

A LOAN scheme for ter tiary students, intro duced by the Port

Moresby government

in Papua New Guinea, is proving to be a success.

The first of its kind in the country, the National Capital District Commission gives grants of K 250,000 per annum, which are managed by the University of PNG. The loan scheme is expected to be self-financing in five years.

The scheme was an initiative of former PNG prime minister Bill Skate while he was governor of the National Capital Dis trict in 1997.

It assists tertiary students from Port

Moresby attending various institutions

throughout the country by paying their

tuition fees. Many students and parents faced financial hardship after the introduc tion of a User-Pays system by the govern ment of Sir Julius Chan. The policy covered all services by the government, including education and health.

UPNG deputy registrar (Academic), Ben jamin Naing, was optimistic about the scheme that he said would see its first repay ments before the end of 1999.

He said over K 100,000 had been spent on loans to students who met the NCD govern ment criteria. All beneficiaries of the loan scheme in 1997 and for the first two terms this year were from UPNG. But for the first time since its establishment, a loan has been approved for a student who will study at the University of Technology in Lae this term.

The scheme will be extended to other institutions, particularly Unitech, Pacific Adventist University and the Institute of

Business Studies. IBS is a sub-branch of

Upng.

Students who originate from the NCD or who have lived in Port Moresby for more than five years are eligible for the scheme.

NCD provides the grants of up to K 250,000 which is put into a trust account managed by UPNG and then lent to eligible students.

Upon completion of studies and beginning work, students repay loans with accumulated interest of five per cent per year from the date of acquisition.

Allocation of loans are made on merit or for needy students who are not in receipt of any other scholarship.

The scheme was put on hold last year due to non-commitment by the NCD government but this year it is back on track. ■