FROM PARLIAMENT: HESLB PLANNING A NEW DEBT COLLECTION STRATEGY.

THE Higher Education Students’ Loans Board (HESLB) has disbursed a whopping 811.3bn/- since the programme’s inception in 1994, but has only managed to collect a sum of 106.3bn/- from 69,143 graduates.

Deputy Minister for Education and Vocational Training, Mr Phillipo Mulugo told Parliament on Tuesday that HESLB was planning a new debt collection strategy and a review of its structure which would also mean employing more staff in the loan recovery department.  Some 12 new staff would be employed during 2011/2012 financial year.

“We will engage Social Security Funds and the Tanzania Revenue Authority (TRA) to track down loan defaulters,” he said. In a basic question, Sara Msafiri Ally (CCM -Special Seats) wanted to know how the government would recover its money from loan defaulters. She also questioned the actual figure the borrowers owe HESLB.

Mr Mulugo said most of the borrowers were now in employment, adding that the board needs authority to pin down employers to reveal information of their staff who benefited from the HESLB. Meanwhile, the government has contracted a consultant who would determine the higher learning Student Unit Cost with the aim of easing the burden incurred in loan disbursement.

SOURCE.

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