Issues involved include some loan recipients complaining of being tasked to repay amounts higher than what they originally borrowed and others who have completed repayments but still appear on the debtors' lists.
According authorities, some people have even been listed as debtors without ever having applied for a loan.
Wilson Rurangwa, the Head of the Education Department at BRD, told IGIHE that periodic audits have revealed that some employers continue deducting loan repayments from employees' salaries without remitting these funds to BRD.
'There are cases where employers deduct loan repayments from employees' salaries but keep the money instead of transferring it to BRD. This has been observed for several months in some instances,' he said.
Rurangwa implored individuals who still appear on debtors' list s despite having repaid their loans to approach BRD for correction and possible refunds if overpayments are identified.
He pointed out that some institutions deduct repayments from employees' salaries without notifying BRD, leading to discrepancies in records.
An audit conducted on of 28 companies operating in Rwanda indicates that none complied with regulations for loan repayment collections, which contributed to the errors in the system.
Initially managed by the Ministry of Education since 1980, the responsibility shifted in 2008 to the Students Financing Agency of Rwanda (SFAR).
In 2013, after merging institutions under the Ministry of Education, SFAR was integrated into the Rwanda Education Board (REB) as a department responsible for student loans.
Some of these disparities stem from loans granted over 20 years ago but BRD lacks detailed records on repayments because these transactions were handled by other entities without proper documenting.
Rurangwa says that BRD is actively compiling reports from these institutions to update records and clear debts where possible.
Based on the existing structures, students who have or intend to apply for loans from BRD are required to open accounts with BRD Minuza, a platform created to make student loan services easily accessible.
The accounts help individuals monitor deductions from their salaries and ensure accurate remittance to BRD.
In case excess detections are made, the extra amounts are refunded. So far, Rwf300 million has been refunded to individuals who were overcharged.
Individuals with concerns about their loan repayment processes are encouraged to contact BRD for further assistance by calling 3288.
Between 2016 and 2023, BRD has disbursed over Rwf370 billion in scholarships and loans to more than 96,000 students in universities and higher learning institutions.
The Rwandan government began providing direct student loans in 1980, and in 2016, BRD was selected as the channel through which the process would be sustained.
The institution was handed the responsibility to offer these loans and collect outstanding debts amounting to Rwf70.9 billion from previous recipients. BRD has since recovered over Rwf31 billion.
IGIHE
Source : https://en.igihe.com/news/article/brd-grapples-with-debt-recovery-from-student-loans
