UNZA and CBU fail to recover Students loans amounting to K52 million

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THE Auditor General’s report has revealed that about K52 million given out to University of Zambia (UNZA) and Copperbelt University (CBU) students has not been recovered.

The loans are expected to be recovered from the graduated students, and subsequently deposited in the bursaries revolving funds account to assist other vulnerable students.

The unrecovered money was paid to 4,088 students from the two public universities.

The report further states that the non-recovery of students’ loans has been outstanding since 2004.

This came to light when Ministry of Education, Science, Vocational Training and Early Education permanent secretary Patrick Nkanza appeared before the Public Accounts Committee during the week.

“It is, however, regrettable that recoveries had not been effected as of August 2014,” Dr Nkanza said.

He said that the ministry is in the process of migrating from the old system, which had no properly defined modalities of recovering the loans.

Dr Nkanza said that the new system will ensure loans paid out to various students are adequately tracked and fully recovered.

“Structures and the loan recovery system will be developed once the loans board is put in place,” he said.

Meanwhile, the Auditor General’s report has also revealed that about K19 million paid as allowances to students abroad has not been acquitted.

The money was paid to 1,108 students abroad through Zambian embassies.

The report revealed that no acquittal sheets were availed for audit to verify whether they were received by intended beneficiaries.

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8 COMMENTS

  1. How can they recover student loans if graduates can’t get jobs. Selling tomatoes won’t provide them with enough to payback they loans…… Oh dear!!!!

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    • Ask Kenya how they recover they will tell you. These so called graduates are the same ones who drink the most. Where they get the money to drink, nobody knows

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  2. How do you give a loan without clear recovery plans? I don’t blame the graduates, I blame the Govt which gives out loans without properly spelt out modalities.

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    • When will this government learn accountability? This country is run like a home of illiterates who don’t understand budgeting and how to make ends meet? These loan will have to be written off as bad debt. How do other countries like Kenya and the UK recover student loans? What is the period given for recovery of loans? Some of these loans haven’t been paid off since 2004 which is 11 years later? How does the Ministry know who is working and able to pay off and who isn’t? Can we be serious please?

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  3. Please this is a simple matter, no one recovers student loans in a non-performing economy. This is sense and not a rocket science at all. PF has not grown the economy hence no one has the capacity to pay back the said amount. It is a bottomless pit, giving those loans, what students needs are grants and work on the economy.

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  4. Zambians when are we going to change? That money can help othet students. where is the opposition becoz if it was govt failing to pay students they would hsve been the loudest. lets learn to be respondible. lets find these students they should pay.

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  5. The UK student Loans are recoverable only when a person goes into employment earning over a certain amount, used to be £15K per annum. Once that amount is earned, you pay in instalments monthly; and employers ask on the application form if you still have arrears. If so they automatically make an attachment to your salary if it is over the threshold amount of 15K. That’s a check in place to ensure students pay.

    People over a certain age, 50 or so do not have to pay it back. It’s worth going into employment after GCSE’s and going to UNI after 50 years!! Joke of course! But on the Job Training (vocational)where available could be first choice for students instead of rushing into university right away.

    I paid back my loan in 2010. Students from UNZA and CBU that can pay must…

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