Minister Again Assures $630m TELS Debt Write Off In Budget
“That burden will be lifted after the announcement of the Budget. That is a decision that the Prime Minister has made,” he assured.
Monday 19 June 2023 | 11:43
Minister for Finance Biman Prasad has reassured that Government will announce the write-off of the $630 million Tertiary Education Loans Scheme (TELS) debt in the 2023-2024 National Budget on June 30.
In January, the Tertiary Education Loans Scheme board confirmed that 8000 students were under TELS.
Mr Prasad made the reassurance while speaking during the inauguration of the Nine Miles Pharmacy at Nakasi, Nasinu.
Related stories
“The $630 million debt will be waived,” he said.
“That burden will be lifted after the announcement of the Budget. That is a decision that the Prime Minister has made,” he assured.
“We acknowledge that we need to provide the environment, provide jobs, provide scholarships, adequately fund tertiary institutions to give youths support and freedom to do things.”
He said the plan was in place to replace TELS with scholarships.
In an earlier interview Mr Prasad said that forgiving this debt would not have an impact on Government’s revenue collection because the repayment rate was almost insignificant given the level of debt.
However, he revealed Government had lost close to $100 million because students who have taken loans under the Tertiary Education Loan Scheme had dropped out of universities.
“On average, we were collecting $5 to $6 million per year,” Mr Prasad said.
“So, if you are talking about the impact, it will be a very small impact on government revenue collection,” he said.
“It will not have a significant impact on Government revenue if we forgive that in the next budget.”
Story by: inoke.rabonu@fijisun.com.fj
