The National Manpower Development Secretariat (NMDS) has introduced a new framework aimed at ensuring the sustainability of the Loan Bursary Fund (LBF), following the Cabinet’s decision to suspend 50 percent of loan repayments for financially needy Basotho students. This development was discussed during a meeting held in Maseru on Monday between the Portfolio Committee on the Economic and Development Cluster and NMDS officials.
The meeting was convened to address the Savingram released in September 2023, which outlined the suspension of 50 percent of loan repayments. The suspension, meant to ease the financial burden on students, raised concerns about the long-term sustainability of the LBF.
NMDS representatives explained the measures being implemented to maintain the fund’s viability while still supporting students in need. These include stricter eligibility criteria, enhanced loan recovery mechanisms, and innovative funding strategies to ensure the continuity of the fund.
The Portfolio Committee acknowledged the importance of the fund for many Basotho students who rely on it to access higher education. However, they emphasized the need for NMDS to strike a balance between assisting students and preserving the financial health of the fund.
The NMDS reiterated its commitment to helping financially disadvantaged students while ensuring the LBF remains a reliable resource for future generations. Further discussions are expected to refine the framework and address any potential challenges.
This initiative reflects the government’s dedication to both education and financial sustainability, as it works to support students in achieving their academic and career goals.
