Loan Act Lands at Senate

A draft Act seeking to create a national educational loan program for Liberian students has landed at the Liberian Senate.

The Act is being sponsored by Maryland County Senior Senator John Ballout along with 10 other senators.

The Act, a copy of which is in possession of the Daily Observer, acknowledges the huge number of youth that are school dropouts without any chance of earning a living and of contributing to nation building owing to lack of higher education, professional or technical training, among others.

It underscores the need for urgent and affirmative action by Government through the provision of opportunities for all Liberian students.
When passed by the Senate, the Act will be known as National Education Loan Program.

The program will enable Liberian students acquire education on loan from the Liberian Government.

The loan program, according to the Act, will only cover Liberians and will provide the agreement between the state and beneficiaries. The program will cover students from under-graduate and vocational training levels across Liberia.

Loan taken by beneficiaries will be paid on the basis of salary deduction after the beneficiaries have completed their education and employed by the state or the private sector.

The program will establish reasonable guidelines and policies to govern the loan process including interest of not less than five percent or not more than 10 percent.

The loan scheme shall demand that all loans be ensured to guarantee payment to government in the event of default in any manner or form.

According to the National Education Loan Act, insurance cost will be borne by recipients with fees being paid to the institution accepting the students.

According to the Act, the Government of Liberia is to make an annual budgetary appropriation to the National Education Loan Program.

It states further that Government should make available US$1 million to jump-start the loan program when passed by the Senate.

Fifteen persons representing the 15 political sub-divisions of Liberia are expected to be placed on the board to run the affairs of the program. The autonomous body is also expected to work closely with the Ministry of Education to ensure the operations of the Program.

The body, as spelt out in the Act, shall submit an annual report to the President and the National Legislature regarding the operations of the Program.

The Act will also give power to that autonomous body to raise funds to complement government support while the secretariat managing the Program will be audited periodically.

Meanwhile, the Act has so far received 10 signatures from members of the Liberian Senate. Some of those senators include Grand Gedeh County Senator Isaac Nyenabo; Bong County Senator Jewel H Taylor and Montserrado County Senator Geraldine Doe-Sheriff.

At the same time, the Liberian Senate has forwarded the draft Act to its committee on Education and Ways Means and Finance to look at the bill and advice plenary in two weeks.

Legislative insiders say members of the Liberian Senate are contemplating passing the bill within the next few weeks in order to enable the program kick off come 2010/2011 budget year.