1. Government Policy on the Financing of Students in Higher Education Ministry of Education

2. Background of Higher Education in Rwanda After 1962 – there was increased need to provide training to Rwandans as most colonial administrators were leaving the country Establishment of the NUR Enrollment at NUR was kept low over years No new HLI’s were established until late 1990’s As Enrolment increased, the Government could not support the increasing number of students Later (in 1980’s) ideas to introduce cost-sharing were started

3. Prêt bourse: Repayment by serving for minimum 5 years Frais de memoire: repayment by paying cash Prêt bourse: Repayment by serving for minimum 5 years Frais de memoire: repayment by paying cash Frais de memoire: repayment by paying cash Frais de memoire: repayment by paying cash Prêt bourse: Repayment by serving for minimum 5 years Prêt bourse: Repayment by serving for minimum 5 years NUR established: Students received grants, not loans NUR established: Students received grants, not loans 1981 - 1987 1981 – 1987 1991 – to-date 1963 Evolution of agreements regarding re-payment of the loans since 1980 to-date Period

4. Signed loan contracts at NUR and MINEDUC indicate various forms of repayment of the loans: Serving in the Public sector for at least 5 years after graduation Paying back the loan in cash on monthly income Both the mechanisms above Evolution of agreements regarding re-payment of the loans since 1980 to-date

5. Period between ….and ….. Estimated no. of students Living allowance/Mon th (FRw) Frais de memoire (FRw) 1981 (or earlier) and 1987 small no.??? 1981 and 1990/1small no.11,00040,000 1991/2 and 1993/4small no.11,00040,000 1994/5 and 2000/1Large no.11,000100,000 2001/2 & 2005Large no.25,000100,000 Cumm. Total (est.)22,500 Amount of loan issued to students at Higher Education Since 1980’s

6. Year when loan started (or earlier)1980’s Estimated no. of students who have received loans since 1980’s 22,500 Estimated amount recoverable (FRw)12,6bn frw Loanees automatically tracked :CSR/RRA data 8,000 Summary of loan estimates

7. Have any students re-paid the loan since 1980’s? Some loan beneficiaries have probably repaid their loan either by cash or serving the public sector for atleast 5 years, There has been no efficient loan recovery mechanism up to this day The majority have not paid back the loan

8. What is the current situation GoR sorely meets the cost to ensure basic education for all GoR provides support to Secondary especially at Troncomun Funding of Primary and Secondary Education

9. GoR meets high cost of tuition fees GoR issues loans to students for stipend, these loans have NOT been paid back up- to-date All students who meet the academic condition/ cutt-off mark automatically receive Government funding There is limited or no criteria based on financial need or National priority courses Funding of Higher Education

10. Increasing Access (n° of students) to Higher Education Enhancing Equity in accessing funding at Higher Education (needy and disadvantaged students) Reducing Government budget pressure in Higher Education Facilitating improvement in infrastructure and quality at Higher Education Matching the skills development with the labour market needs Government intention Introducing Cost-sharing

11. “ to shift of the burden of HE costs from being borne exclusively or predominantly by Government or taxpayers, to being shared with students and their parents --- who are the major beneficiaries of higher education through private returns”. Why introduce Cost-sharing

12. Law N°50/2006 of 05/10/2006 establishes and determines the responsibilities, structure and functioning of the Student Financing Agency for Rwanda (SFAR). Legal framework

13. SFAR law : Article 5 “An order of the Minister in charge of higher education shall determine the criteria of awarding a loan, recovering it and the modalities through which the student who received a student loan shares with the Government the cost of education”.

14. SFAR law : Article 6 “ “A Presidential order shall determine the criteria of awarding a bursary and the obligations of the bursary recipient during and after studies”.

15. High school leavers must possess: 1. 1.Distinction or its equivalent in: Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education 2. 2.Grand Distinction for other options Must be admitted to pursue higher education in related fields   Bachelors Degree --- Masters,   Masters Degree --- Doctorate degree must possess a Grand Distinction and be admitted to pursue: Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce Criteria for awarding bursary

16. High school leavers who are joining Higher education must possess a: 1. 1.Satisfaction or its equivalent in: Maths-Physics, Biology-Chemistry, other S&T-oriented options, Education 2. 2.Distinction for other options Must be admitted to pursue higher education in related fields   Bachelors Degree holders who are joining Masters,   Masters Degree holders who are joining Doctorate degree must possess a Distinction and be admitted to pursue: Medicine, Engineering, Biology, Chemistry, Physics, Maths, Agriculture, Animal Husbandry, Water engineering, Environmental Sciences, Hygiene, Tourism and Hotel Management, Finance, Economics and Commerce Criteria for awarding loans

17. Cost sharing: Science: students 25% Government 75% Others: students 50% Government 50% Based on Unit cost of 1.5M for Scinces and 1.2M for Arts Cost sharing between student and Govt

18. Financial Means Testing will be used in determining the financially deserving students. It will be reviewed annually. It assumes that not all students have the same level of ability to pay the cost of their education A comprehensive loan application form to be used in determining an applicant’s capacity to pay for their education. Information on this form will be keyed into the electronic FMT tool which will determine the amount of loan to be awarded to each applicant. Financial Means Testing

19. A REVOLVING FUND (RF) Loans to Students at Higher Education Donor Funding GoR Funding Other sources of funds Recovered loans

20. Tracking former loan takers who are not in school Numerous options… Self declaration of loan taker – patriotic spirit CSR, RRA, MIFOTRA, etc tracking Professional Associations records Employer record verification Individual identification Strategies to be used in Loan Recovery

21. 1. 1.Kenya (HELB) : 1995 – 2005…..10 years 2. 2.Ethiopia: Graduated tax system 3. 3.South Africa (NSFAS)..Decentralized system 4. 4.Tanzania 5. 5.Ghana 6. 6.Australia (HECS) 7. 7.Canada: (CSLP) 8. 8.Germany, Hong Kong, China, India, New- Zealand, Sweden, USA, etc. Student Loans Schemes in the Region

22. Thank you