Student should be issued interest-free loans

Baku/10.03.21/Turan: In 2021, it is planned to create an "Educational-student credit" system in Azerbaijan, reads the report of the Cabinet of Ministers for 2020 submitted to parliament.

For these purposes, the 2021 state budget provides for allocating 80 million manats. What criteria will be used to provide loans is not yet clear.

Earlier, Education Minister Emin Amrullayev said that interest-free loans would be provided to low-income people, as well as students who have shown high academic results.

Azerbaijan already has the practice of providing loans to students. In 2015, on the initiative of the Ministry of Education, the Maarifchi Student Credit Fund was created. It provides soft loans and grants to students from low-income families.

For 6 years, "Maarifchi" has concluded 272 loan agreements. However, since 2019, the fund has not published any loan announcements.

According to Eldar Guliyev, member of the Milli Majlis Committee on Science and Education, the mechanism of the student loan program at the expense of the state has not yet been determined. In his opinion, students will be given interest-free loans, which they will repay when they start working.

The MP believes that loans will be issued on such terms that those who receive an average salary can deduct 100-200 manats a month to pay off the debt.

Member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship Rufat Guliyev noted that a graduate should be provided with a job. However, in practice, young people have problems with employment; half of the graduates do not work in their specialty. The Ministry of Education, the Ministry of Labor and the Cabinet of Ministers must calculate how many personnel will be needed in specific areas when determining the admission plan. Students who entered under the state order and received loans should be involved in government work, work in the regions, the deputy said.

Education expert Kamran Asadov noted that back in 2013, a state strategy for the development of education was adopted. At the same time, the creation of the Education Development Fund was envisaged, but it was never formed.

Over the past 7 years, over 5 thousand students have been expelled from universities due to non-payment for tuition. In Azerbaijan, annually only 42% of graduates are provided with work in their specialty. The rest work in other areas or do not work at all. Half of the places in the student admission plan (21,600) are reserved for paid education.

Asadov believes that 80 million manats will pay for education of 38-42 thousand students. “These are normal numbers. However, there must be a mechanism for equitable distribution of funds. Loans should be interest-free so that students do not become debtors. Young people should be provided with jobs to pay off credit debts,” Amrullaev said. — 06D-