Ministry of Education Government Policy on the Financing of - - PowerPoint PPT Presentation

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Ministry of Education Government Policy on the Financing of - - PowerPoint PPT Presentation

Ministry of Education Government Policy on the Financing of Students in Higher Education Background of Higher Education in Rwanda After 1962 there was increased need to provide training to Rwandans as most colonial administrators were


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Government Policy on the Financing of Students in Higher Education

Ministry of Education

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Background of Higher Education

in Rwanda

After 1962 – there was increased need to provide

training to Rwandans as most colonial administrators were leaving the country

Establishment of the NUR Enrollment at NUR was kept low over years No new HLI’s were established until late 1990’s As Enrolment increased, the Government could

not support the increasing number of students

Later (in 1980’s) ideas to introduce cost-sharing

were started

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Prêt bourse: Repayment by serving for minimum 5 years Frais de memoire: repayment by paying cash Prêt bourse: Repayment by serving for minimum 5 years Frais de memoire: repayment by paying cash Frais de memoire: repayment by paying cash Frais de memoire: repayment by paying cash Prêt bourse: Repayment by serving for minimum 5 years Prêt bourse: Repayment by serving for minimum 5 years NUR established: Students received grants, not loans NUR established: Students received grants, not loans

  • Evolution of agreements regarding

re-payment of the loans since 1980 to-date Period

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Signed loan contracts at NUR and MINEDUC indicate various forms of repayment of the loans:

Serving in the Public sector for at least

5 years after graduation

Paying back the loan in cash on

monthly income

Both the mechanisms above

Evolution of agreements regarding re-payment of the loans since 1980 to-date

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40,000 11,000 small no. 1991/2 and 1993/4 22,500 Large no. Large no. small no. small no. Estimated

  • no. of

students 25,000 11,000 11,000 ??? Living allowance/Mon th (FRw)

  • Cumm. Total (est.)

100,000 2001/2 & 2005 100,000 1994/5 and 2000/1 40,000 1981 and 1990/1 ??? 1981 (or earlier) and 1987 Frais de memoire (FRw) Period between ….and …..

Amount of loan issued to students at Higher Education Since 1980’s

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8,000 Loanees automatically tracked :CSR/RRA data 12,6bn frw Estimated amount recoverable (FRw) 22,500 Estimated no. of students who have received loans since 1980’s 1980’s Year when loan started (or earlier)

Summary of loan estimates

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Have any students re-paid the loan since 1980’s?

Some loan beneficiaries have probably

repaid their loan either by cash or serving the public sector for atleast 5 years,

There has been no efficient loan recovery

mechanism up to this day

The majority have not paid back the loan

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What is the current situation

GoR sorely meets the cost to ensure basic

education for all

GoR provides support to Secondary

especially at Troncomun

Funding of Primary and Secondary Education

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GoR meets high cost of tuition fees GoR issues loans to students for stipend,

these loans have NOT been paid back up- to-date

All students who meet the academic

condition/ cutt-off mark automatically receive Government funding

There is limited or no criteria based on

financial need or National priority courses Funding of Higher Education

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Increasing Access (n°of students) to Higher Education Enhancing Equity in accessing funding at Higher

Education (needy and disadvantaged students)

Reducing Government budget pressure in Higher

Education

Facilitating improvement in infrastructure and quality at

Higher Education

Matching the skills development with the labour

market needs

Government intention

Introducing Cost-sharing

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“ to shift of the burden of HE costs from being borne exclusively or predominantly by Government or taxpayers, to being shared with students and their parents

  • -- who are the major beneficiaries of higher

education through private returns”.

Why introduce Cost-sharing

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Law N°

50/2006 of 05/10/2006 establishes and determines the responsibilities, structure and functioning of the Student Financing Agency for Rwanda (SFAR).

Legal framework

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SFAR law : Article 5

“An order of the Minister in charge of higher education shall determine the criteria of awarding a loan, recovering it and the modalities through which the student who received a student loan shares with the Government the cost of education”.

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SFAR law : Article 6

“ “A Presidential order shall determine the criteria of awarding a bursary and the

  • bligations of the bursary recipient during

and after studies”.

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High school leavers must possess:

  • 1. Distinction or its equivalent in:

Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education

  • 2. Grand Distinction for other options

Must be admitted to pursue higher education in related fields

  • Bachelors Degree --- Masters,
  • Masters Degree --- Doctorate degree

must possess a Grand Distinction and be admitted to pursue:

Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce

Criteria for awarding bursary

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  • High school leavers who are joining Higher education must possess a:

1. Satisfaction or its equivalent in:

Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education

2. Distinction for other options Must be admitted to pursue higher education in related fields

Bachelors Degree holders who are joining Masters, Masters Degree holders who are joining Doctorate degree must

possess a Distinction and be admitted to pursue:

Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce

Criteria for awarding loans

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Cost sharing:

Science: students 25% Government 75% Others: students 50% Government 50% Based on Unit cost of 1.5M for Scinces and

1.2M for Arts

Cost sharing between student and Govt

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  • Financial Means Testing will be used in

determining the financially deserving students. It will be reviewed annually.

  • It assumes that not all students have the same

level of ability to pay the cost of their education

  • A comprehensive loan application form to be

used in determining an applicant’s capacity to pay for their education.

  • Information on this form will be keyed into the

electronic FMT tool which will determine the amount of loan to be awarded to each applicant.

Financial Means Testing

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A REVOLVING FUND (RF)

RF RF RF Loans to Students at Higher Education

Donor Funding GoR Funding Other sources

  • f funds

Recovered loans

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Tracking former loan takers who are not Tracking former loan takers who are not in school in school Numerous options…

  • Self declaration of loan taker – patriotic

spirit

  • CSR, RRA, MIFOTRA, etc tracking
  • Professional Associations records
  • Employer record verification
  • Individual identification

Strategies to be used in Loan Recovery

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  • 1. Kenya (HELB) : 1995 – 2005…..10 years
  • 2. Ethiopia: Graduated tax system
  • 3. South Africa (NSFAS) ..Decentralized

system

  • 4. Tanzania
  • 5. Ghana
  • 6. Australia (HECS)
  • 7. Canada: (CSLP)
  • 8. Germany, Hong Kong, China, India, New-

Zealand, Sweden, USA, etc.

Student Loans Schemes in the Region

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Thank you