The Higher Education Students’ Loans and Grants Board (HESLGB) has developed an Employer Guide to strengthen the recovery of student loans and help employers understand their responsibilities under the HESLGB Act of 2015.
HESLGB Public Relations
Officer Millie Kasunda said the guide provides information on how employers can
identify former student loan beneficiaries, make monthly salary deductions and
remit loan repayments to HESLGB.
“This strategy is aiming at
providing a guideline to employers to supporting loan recovery by deducting
money from employees and remit it to the board,” Kasunda said.
Kasunda says the new
strategy is aimed at recovering loans from beneficiaries, with repayment
becoming mandatory two years after the loan was received, regardless of whether
the beneficiary successfully graduated or not.
She added that under the
new strategy, employers are required to notify HESLGB within 30 days of
employing a former loan beneficiary and remit the deducted repayments to the
Board by the 15th of every month.
“Employers should download
the guide from our website and make use of it. They can also request from us
and we can send physical copy to them"” she added.
HESLGB has since warned
that employers who fail to comply with the law may face penalties, including a
fine of up to K1 million for each affected loan beneficiary.
The Board has further assured
Malawians that it will continue working with employers and other stakeholders
to strengthen compliance with the Act and ensure the sustainability of Malawi’s
Student Loan Scheme.
