2.3.5 OVERSEAS LOAN APPLICANTS (UNDERGRADUATE AND POSTGRADUATE )
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Eligible students for loans for 2016/2017 academic year, admitted to pursue studies Overseas must fulfil General Eligibility Criteria set in Section 2.1 above.
In addition to the General Eligibility Criteria set in Section 2.1 above, only overseas applicants selected by the Ministry responsible for Higher Education, with full scholarships, will be eligible for top up stipend loans not exceeding USD 1200 per annum. The students have to be selected to pursue studies overseas under bilateral agreements between the Government of the United Republic of Tanzania and foreign governments.
3.0 MEANS TEST, LOAN ITEMS AND AMOUNT/RATE TO BE FINANCED
According to the Act, the Board may provide loans to cover either all items or any of the items stipulated under section 16 (3).
3.1 Means Test System
The Board has since 2011/2012 academic year reviewed the means test system to make it Simple, Transparent and Fair.
The Means Test System considers School Fees paid in O – level and A – Level Secondary Schools or Ordinary Diploma as an indication of the applicants’ ability to contribute to the costs of higher education.
Thus, the Applicant’s neediness shall be measured as a difference between the higher education costs (Meals and Accommodation charges, Books and Stationery expenses, Special Faculty Requirement expenses, Field Practical expenses, Research expenses and Tuition Fees) of a particular institution of study and the applicant’s ability to pay forhis/her own education; multiplied by a factor to acknowledge the high return of Higher Education to the applicant. The factor ranges from 1.1 to 1.5 depending on the magnitude of the Tuition Fees paid at O-Level or ALevel Secondary/Ordinary diploma Education. The higher the magnitude, the higher the factor.
In addition, the system shall make adjustments to cover for Loan applicants with special socio-economic disadvantages such as Orphanage, Disability (of Parents/applicants) and those with Single parents.
Under the Means Test System, the whole loan shall be aggregated to one lump sum amount. Out of that, the Tuition Fee and Special Faculty Requirement components shall be paid directly to the institution of study, whereas the remaining amount shall be paid to the student quarterly.
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The Means Test shall be applicable to first time loan applicants on Tuition fees and Special Faculty Requirements loan items only. The other four loan items (Meals and Accommodation, Books and Stationery, Field Practical Training and Research) may be allocated one hundred (100) per cent.
3.2 Number of Students to be issued Loans
In view of the limited loanable funds budget, and pursuant to section 7, paragraph (1) of Act No 9 of 2004 (as amended), the Board in the 2016/2017 academic year shall issue loans to a number of applicants as per allocated budget.
In view of limited loanable funds budget, candidates who are able to meet costs of higher education, are strongly advised not to apply for loans from the Board.
3.3 Applicable Tuition Fee Rates
Tuition Fees for first time loan applicants approved for loans in the 2016/2017 academic year as well as all continuing loan beneficiaries in Local HEIs shall be pegged to the equivalent tuition fees paid in Public Higher Education Institutions which were used in 2015/2016 academic year.
3.4 Continuing students who are loan beneficiaries
All other continuing students’ loan beneficiaries shall continue to receive their loans as per their previous Means Test Grades upon submission of examination results/progress reports to signify that they have passed and are proceeding to the next year of study. However, all continuing students who are loan beneficiaries need not to reapply for loans except those who are no longer in need should notify the Board through the Online Loan Application Management System (OLAMS).
3.5 Tuition Fees
The Board may provide tuition fee loans of between 0% and 100% based on the comparable rates charged by public institutions and also depending on the types of the programmes offered by the comparable
Public institutions.
The ceiling Tuition Fee of Tzs 3.1 million that was set on medical related programmes in the 2013/2014 academic year shall continue to be applicable during the 2016/2017 academic year. This ceiling will be
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applicable to first, second, third and fourth year students only while fifth year students will continue with the ceiling of Tzs 2.6 million. Also, given increased demand for loans, and limited budget available, HESLB shall continue to issue Tuition Fees loans for non-medical related programmes based on the rates that prevailed in previous year (2015/2016), for both new and continuing students, for all programmes of study.
The tuition fee funds shall be paid directly to the Higher Learning Institutions but the student borrower shall have to acknowledge receipt of the funds by signing on a copy of the payment list issued by the Board. It will be the responsibility of the Higher Education Institutions to properly identify and obtain the signatures of the students on the Tuition Payment sheets and submit the original signed sheets to the Board within sixty (60) days after receipt of the funds.
3.6 Field Practical/Teaching Practical Training expenses
The Board may provide Field Practical Training/Teaching Practical (FPT) loans at the rate of Tzs 10,000 per day up to a maximum of 56 days in a year. FPT loans shall not be subjected to Means Test.
The Board may provide such loans for those programmes that require Field Practical Training (FPT) as recommended by the respective Higher Education Institutions and approved by the Tanzania Commission for Universities (TCU) and the National Council for Technical Education (NACTE).
3.7 Special Faculty Requirements
Subject to Means Test results, the Board may provide Special Faculty Requirement (SFR) loans of between 0% and 100% but only for study programmes that require special faculty requirement items and only for specified items as approved by TCU/NACTE based on the rates comparable to public institutions.
Funds for special faculty requirements shall be paid directly to the Higher
Learning Institutions but respective student borrowers shall have to acknowledge receipt of the funds by signing on a copy of the payment list issued by the Board.
Within the amount allocated for Special Faculty Requirements, eligible and needy students with disability may be provided with loans to cover special academic material requirements as may be determined by the Board.
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3.8 Meals and Accommodation
The Board may provide loans for Meals and Accommodation at the rate of Tzs 8,500 per day while on campus for theoretical instructions in the academic year.
3.9 Books and Stationery expenses
A maximum of Tzs 200,000.00 per annum for Books and Stationery may be granted to eligible and needy students. However, loan beneficiaries from the Open University of Tanzania (OUT) may be granted books and stationery loans for a maximum of 3 to 4 academic years only (depending on the programme of study) and not every year.
3.10 Research expenses
The Board may provide loans of 100% for Research expenses in selected fields only, based on the rates applicable at public institutions and as may be endorsed by either TCU or NACTE. These fields include:
• Health Sciences as defined in section 2.7.2 above
• Engineering
• Agriculture
• Land Sciences
• Other eligible undergraduate programmes may be given research loans to a tune of Tzs 100, 000.00 in their final year of study
4.0 OTHER CONDITIONS ON ISSUANCE OF LOANS
4.1 Liability of Guarantors, Parents, and Commissioners for Oath
Parents/Guarantors are liable for checking correctness of information submitted by applicants, and terms and conditions of the loan before appending signatures in the application forms. The guarantors must ensure that the loans are repaid and must be aware of the borrowers’ whereabouts until the loans are fully repaid.
Commissioners for Oath are expected to exercise due care during authentication of documents of the applicants, in order to minimize forgeries.
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4.2 Value Retention Fee
For the purpose of retaining the value of the loans issued as well as making the loan scheme sustainable, all loans issued bear a Value retention fee equal to 6% (six) percent, per annum.
4.3 All student loans shall be subjected to 1% Loan Administration fee.
4.4 If a beneficiary fails to repay his/her loan as per the loan repayment schedule, a 10% penalty shall apply.
4.5 Students with multiple admissions
Loan applicants and Higher Education Institutions are hereby advised to ensure that a candidate is admitted to only one Institution. The Board shall not be responsible for delayed or non- disbursement of loans arising from the problem of multiple admission.
4.6 Students shifting from one Institution to another
To avoid misdirection of loans for students admitted at one institution who later choose to shift to other institutions, the Board shall not raise a duplicate loan payment to such students. Instead, loan applicants who shifted will have to wait until the Board receives back the funds from the institution where loans were initially paid.
The Board may re-direct the loans to the Institution where the student has shifted to, subject to obtaining written confirmation from TCU/NACTE that, the transfer of a student has been approved as well as written report that the candidate has actually reported and registered at the new HEl.
The Board will honour and process only transfers which have been received within ninety (90) days from the date of admission for first year students. Only transfers which do not attract additional loans amount will be considered, otherwise, transfers will be done based on previous amounts allocated.
4.7 List of Candidates admitted to Higher Education Institutions
To ensure compliance and enforcement of quality issues in higher education, only candidates in the official admission lists approved by the TCU or NACTE for respective institutions shall be considered for loans. Higher Education Institutions are advised to strictly submit lists of
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admitted students through either TCU or NACTE. Admission lists submitted directly to the Board by Higher Education Institutions shall not be considered.
4.8 Mode of Application
The Board has since 2011/2012 academic year introduced an Online Loan Application and Management System (OLAMS) with the aim of simplifying and increasing efficiency of the loan issuance process.
Candidates wishing to apply for loans for the 2016/2017 application cycle are required to apply through OLAMS; print out the application forms and Loan Agreement, obtain appropriate authentifications, sign the forms, attach necessary documents and submit to the Board though EMS to:
The Executive Director,
Higher Education Students’ Loans Board,
Plot No.8 Block No. 46, Off Sam Nujoma Road, Mwenge, P.O. Box 76068,
DAR ES SALAAM.
Applicants are advised to keep copies of the application forms with their attachments and the EMS receipts used for mailing the application forms for purposes of tracking the application forms.
Eligible needy candidates are advised to visit the HESLB website
www.heslb.go.tz in order to familiarize themselves with OLAMS before attempting to apply.
4.9 Loan Application Fees
First time loan applicants must pay a non-refundable one-off application fee of TZS 30,000.00 which shall be paid through M-Pesa , and the Transaction ID generated should be input into the Online System prior to filling the application forms.
4.10 Application Deadline
The Loan Application cycle for 2016/2017 academic year will start in June 27th, 2016 and come to an end on July 31st, 2016. Applications lodged beyond this date shall not be