TELS under review
14 March, 2018, 12:00 am
THE methods of repayments for students under the Tertiary Education Loans Scheme (TELS) scholarship is being reviewed, says Attorney-General and Minister for Education Aiyaz Sayed-Khaiyum.
Mr Sayed-Khaiyum said under the new review, students who would work and earn less than $15,000 per annum would not repay their loans until they earned more.
“So anybody that has finished their studies and they’ve got employment and they are earning less than $15,000 a year, they don’t do any repayments until they start earning $15,000,” he said.
Mr Sayed-Khaiyum made this statement while responding to a question by the National Federation Party leader and Opposition MP Professor Biman Prasad in Parliament yesterday on whether the Government would reduce the rate of repayment of TELS for students from 20 per cent of their gross salary once they had found employment.
“We are currently reviewing the methodology of payments, we accept the fact that as we found out that there maybe some students who, when they graduate and they find employment, some of them maybe working at a salary where they are getting paid an annual salary of $15,000,” Mr Sayed-Khaiyum said.
“Some of these students actually start earning $30,000 so we want to be able to have a graduated approach in respect of the percentage of deduction that should come out of their gross salary.”
Mr Sayed-Khaiyum said students earning more than $15,000 to $20,000 would pay a rate of 10 per cent while those who earned $20,000 to $30,000 would pay a rate of 15 per cent.
For those earning above $30,000 would pay 20 per cent, he said.
Mr Sayed-Khaiyum said by 2020, about $750 million would have been spent through TELS.