President Dr. Mohamed Muizzu has announced a major policy shift to make student loans fully compliant with Islamic financial principles, ensuring that no additional fees or interest are charged.
As part of the new directive, the government will eliminate the 1% administrative fee currently applied to student loans issued by the Ministry of Higher Education, Labour, and Skills Development. Additionally, no extra charges will be imposed beyond the original loan amount.
The President has also instructed authorities to adjust loan balances for students who have previously taken loans, deducting the administrative fee from their outstanding amounts.
Last year, the Higher Education Ministry provided loans to over 1,000 students, facilitating access to education both locally and abroad. The government also maintains a registry of Maldivian students studying overseas on government scholarships and loans, which recorded over 2,000 students as of December—comprising 915 male and 1,201 female students.
The student loan scheme allows recipients to study in their country of choice, with a focus on fields essential to national development. The Higher Education Ministry previously outlined priority sectors for loan allocations, including construction, aviation, and agriculture, aligning with President Muizzu’s manifesto pledges.
This latest move underscores the government’s commitment to easing financial burdens on students while upholding Islamic financial principles in national policies.
