Student loans from the president

Baku/19.06.21/Turan: On June 17, President Ilham Aliyev signed a decree on the creation of the Student Educational Loans Fund created. The Fund, which has been spoken about for a long time, was created under the Ministry of Education.

According to the decree, the Fund was created with the aim of providing access to education for people from low-income families, creating equal opportunities in obtaining education and expanding education coverage.

The foundation is a non-profit legal entity that organizes the issuance of educational student loans. For the implementation of general management and control over its activities, a board of trustees of seven members is created, acting on a voluntary basis.

The current management of the Foundation is carried out by the Board, consisting of three members - the chair and two deputies. The costs of organizing and maintaining the activities of the institution are financed from the state budget and other sources not prohibited by law.

Despite the fact that over 7 years, 5,000 students who could not afford to pay for their education were expelled from higher educational institutions, experts regarded the creation of the Fund as a necessary step, and reports of corruption in the organization began to appear on social networks.

Despite the fact that yesterday the Fund for Student Educational Loans was a non-profit organization, the statements of the Minister of Education Emin Amrullayev on the issuance of loans at 2 percent were not met with a clear answer.

Will the creation of the Student Educational Loans Fund solve the problem of tuition fees?

One of the students of Baku State University, who wanted anonymity, said that though the credit system at first glance seems to be good, it has some negative aspects.

“Yes, many have borrowed at high interest rates to continue their education, and the Student Loan Fund system will put an end to this. But the question is, will all students in need be able to take advantage of this?” he asks. An anonymous person says it is unclear if students will find job in the future.

“But they are already preparing for such a load. Instead of exemption from tuition fees, a 20-year loan is offered,” he said.

According to the Ministry of Education, there are educational loans all over the world, and the main purpose of creating the Fund for Student Educational Loans is to improve the quality of education, its accessibility, and solve a number of social problems in this area. In many cases, students or applicants who entered universities, but for one reason or another did not have time to pay for their education, faced problems.

The ministry noted that in Azerbaijan in recent years, on the relevant instructions and orders of the head of state, the number of places of state order in higher educational institutions has been increasing.

“Considering the social assistance provided in connection with the coronavirus pandemic, at that time the education of 20 thousand students was paid for by the state, more than 50 percent of students study at the expense of the state. But at the same time, funding for education should always be diversified, and the presence in Azerbaijan of the Educational Student Loan Fund, which combines the most advanced world practices, will open up new opportunities for students,” the Ministry of Education.

The ministry stressed that student loans are provided to students who receive education on a fee basis. These loans are mainly provided to students from socially vulnerable groups, and the annual interest rate on these loans is very low. The talk is about 20 or more years after graduation, while having the right to a certain deferral. These students can repay the loan for 20 years after they have already found a job.

It was noted that other standard loans would be provided at the same time. This aims to improve the quality of education and these loans will be disbursed in accordance with the average student success rate. This will help cover some of the student's tuition fees.

The ministry noted that up to 80 million manat is provided from the state budget for these purposes, which can cover 40 thousand or more students. These loans are not commercial.

The ministry stressed that the loan will be transferred not to the student, but to the higher or specialized secondary educational institution in which he studies. An educational student loan can be used by a student studying in both a public and private educational institution.

Ahmed Mammadli, chair of the Student Power Center public association, believes that education should be free.

"Providing educational loans means that the student becomes a debtor. And the primary responsibility of public universities is to provide students with free education," he said.

According to him, in order for student loans to be effective in the current conditions, the distribution of these loans should be entrusted to independent organizations. "This should be entrusted to student organizations and, in parallel, to student trade unions. Appropriate councils should be created within the universities."

According to Mammadli, there will be problems with the implementation of student loans.

“Regarding tuition fees for some students, we apply to the Ministry of Education, to the universities themselves, but they create bureaucratic problems. They say that you need to contact the State Social Protection Fund, the Employment Department, in order to prove that the parents of the student are unemployed, and this bureaucratic process is long and tedious. If the lending is entrusted to universities, it will strengthen bureaucratic procedures and this system of educational loans will not be successful,” he said.

The expert noted that when a student enters the university, he is promised career growth. "They say that while you are in your 4th year, we will provide you with work through the Career Center, we will send you to various internship programs, but these are just empty promises. For example, a person studying at the law faculty is doing paperwork in the prosecutor's office or in court, and his experience is formal. However, if a student studies on credit, then the state should provide him with a real job, and this is questionable," he said.

Mammadli believes that the Azerbaijani education system is not open to innovation. “They (officials - ed.) say that the system of educational loans works in the West, and it can work in our country too. But since the current education system in Azerbaijan is rotten, closed to innovations, and does not allow students to take exams just because they express dissatisfaction, then the most progressive system here will only have an illustrative character,” Mammadli noted. —0—