By Emmanuel Chilemba:
The Higher Education Students Loans and Grants Board (HESLGB) has recorded a 54 percent increase in loan recovery, rising from K678.4 million in 2024 to over K893.8 million in 2025.
The institution’s Communications Manager, Milly Kasunda, attributes the increase to compliance among former beneficiaries, who she said have been repaying their loans on time.
In response to a questionnaire, Kasunda expressed optimism that the recovered funds will “significantly enhance” the board’s efforts to assist other deserving students.
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“We have been designated by the Ministry of Finance as one of the institutions that can provide information to the credit system in Malawi. This means that, in most cases, individuals will be asked whether they have repaid a loan,” Kasunda said.
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She added that, in that regard, someone who has not repaid their loan will not be able to access credit in Malawi until the loan is settled.
“This system benefits us greatly, as banks do not approve loans until they have verified with us that the individual has repaid any previous loan. Only then can they proceed to access loans from commercial banks,” Kasunda said.
During the 2024-25 financial year, the board disbursed over K36 billion to help more than 33,000 deserving students in both public and private higher education institutions.
Meanwhile, Economics Association of Malawi president Bertha Bangara Chikadza has suggested that the government should increase its allocation to the board to ensure the scheme benefits more students.
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Speaking on the Kulinji programme on Times Radio, a sister broadcasting station to The Daily Times, Tuesday, Bangara Chikadza said this would support the government’s efforts to improve education standards following the recent introduction of free secondary school education.
She was analysing the performance of President Peter Mutharika’s first 100 days in office, focusing mainly on education.
The development comes after HESLGB launched a loan recovery initiative called ‘Make a Difference: Empower the Future – Pay Back Your Student Loan’.
Under the initiative, the board has been encouraging former beneficiaries to meet their loan obligations voluntarily.
The government agency, mandated to manage the students’ loan fund, is optimistic that this development will contribute to the sustainability of the higher education financing system.
