HESLGB ECONOMIC VALUE MAINTENANCE OF OLD STUDENT LOANS USING CONSUMER PRICE INDEX

HESLGB ECONOMIC VALUE MAINTENANCE OF OLD STUDENT LOANS USING CONSUMER PRICE INDEX

PRESS RELEASE- ECONOMIC VALUE MAINTENANCE OF OLD STUDENT LOANS USING CONSUMER PRICE INDEX

INTRODUCTION : CONSUMER PRICE INDEX MODEL

The University Students’ Loan Scheme in Mala- wi was created in 1985 in response to economic challenges and the need for sovereign econom- ic independence during the implementation of Structural Adjustment Programmes.

The scheme started disbursing loans in 1989 and went through various operating models until 2015 when the Higher Education Students’ Loans and Grants Board (HESLGB) was established as an independent institution responsible for man- aging financial support for needy and deserving students in accredited universities and colleges.

To ensure financial sustainability, HESLGB is tasked with establishing a revolving fund using [email protected] loan recovery proceeds as the primary source of capital. However, older loans disbursed un- der the scheme have lost their economic value due to the passage of time and general inflation trends.

In a straightforward sense, the Consumer Price Index (CPI) serves as a gauge of the evolving prices encountered by households within an economy, employing a representative assort- ment of goods and services. The CPI proves to be a valuable tool for measuring the impact of inflation on a currency’s worth.

Annually, the National Statistics Office releases CPI data, en- abling the calculation of the actual value of the Kwacha at a specific moment compared to a previous period.

For loan inquiries, contact the Board at MAKE A DIFFERENCE: EMPOWER THE FUTURE; PAYBACK YOUR STUDENTS’ LOAN

In view of this, the HESLGB will from 1st November 2023, undertake a revaluation of all old loans obtained from 1989 to 2015 using the Consumer Price Index Model to preserve their real value.

Israel Wellington Jeremiah
Israel Wellington Jeremiah
I work to provide access to global experiences to all through educational opportunities like scholarships, training and conferences, fellowships, grants and awards, jobs, internships , learnerships and volunteer programs.

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