VNPF suspends Student Education Support Scheme applications
November 19, 2024 9:57 pm | Posted in Business News | Share now TwitterFacebook
Compiled by Anita Roberts.
The Vanuatu National Provident Fund (VNPF) Board has temporarily suspended new applications for its loan program under the Student Education Support Scheme (SESS) for the year 2025.
When confirming this to the Vanuatu Daily Post yesterday, General Manager (GM) Paul Kaun said the majority of the students who completed studies have not been repaying their loans.
He explained that the decision to suspend new applications is aimed at allowing VNPF to focus on strengthening the repayment process and tightening the eligibility criteria for the scheme.
“This temporary suspension will enable SESS to redirect its efforts and resources toward working closely with guarantors and students on repayment plans, reviewing policies, enhancing procedural guidelines, and overhauling its eligibility criteria,” VNPF said in a statement yesterday.
“These steps aim to ensure that the scheme operates more prudently and improves its investment returns for members.
“While VNPF strongly supports the government’s national strategic human resource development goals, we urge all SESS guarantors and students who owe debts to VNPF to immediately step forward and collaborate on establishing a direct repayment plan for their student loan.
“Failure to engage with VNPF on repayment issues may compel the Board to invoke section 44 A of the VNPF Act [CAP 189], which permits the VNPF Board to seize and sequestrate a member’s credit placed as guarantees for the student education loan with the Fund.”
According to VNPF, nearly 1,800 students have benefited from the scheme.
VNPF clarified that the suspension does not affect current students who will continue to receive funding assistance until they successfully complete their tertiary studies.
Initiated by the former VNPF GM in 2019, the scheme aims to help parents who are members of the Fund finance their children’s education.
The concept, which operates as a microfinance scheme that lends money to members to be repaid with interest, was approved by the VNPF Board in 2020.
Formerly known as the Members Education Support Scheme (MESS) and implemented in partnership with the Ministry of Education, the scheme was renamed the SESS following a report from the Ombudsman’s Office in 2021. It now operates independently under the VNPF.
Under the scheme, VNPF is covering tuition fees, airfares and accommodation. Students are asked to provide guarantors and will repay the loan with an interest rate once they complete studies and secure employment.
