Student loans scheme is fair - Seeto

Loans taken under the government’s Tertiary Loans Scheme definitely have to be paid back and this is fully explained to all the students and parents when they sign up for the scheme.

Tertiary Scholarships and Loans Board Chairman, Dixon Seeto said while some people have started criticizing the scheme and have a defeatist attitude, the fact remains that the loans and scholarships have allowed thousands of students to get into tertiary institutions compared to the past practice.

He also said the guidelines are very fair as it is a merit based system and the loan scheme ensures that those whose families have a combined income of $25,000 a year get interest free loans.

Opposition MP, Ratu Suliano Matanitobua said they have held consultations and young people have disputed the fairness of the loan repayment formula.

Matanitobua said the students say they are trapped in repaying their debt.

He said people are also complaining that they have to pay the debt back at 20 percent deduction.

He also said reforms are needed and the scheme is building an indebted society.

Dixon Seeto stressed that the scheme is fair and it gives equal opportunity to everyone.

He also said recipients facing issues should contact the board.