Students who owe the Namibia Student Financial Assistance Fund (NSFAF) over N$2.6 billion in interest accrued on overdue student loans of N$5.2 billion will heave a sigh of relief after the fund decided to write-off the growing debt.
The fund’s Acting CEO Kennedy Kandume said the decision, which has received approval from the Ministry of Finance, will come as good news to NSFAF beneficiaries that are finding it difficult to repay their loans “due to a scarcity of economic opportunities and related challenges.”
“Interest on all debts that are due and payable (present and historical) will be waived 100%. This means, all interest accumulated will be written off, effectively 1st July 2022. All debts paid up to an amount equivalent to the principal amount, are to be considered as having been redeemed, this applies irrespective of whether paid up was before or during the amnesty,” he said on Wednesday.
The NSFAF amnesty period will run for a period of one year, with new interest starting afresh from 01 July 2023, and will be applied in accordance with the individual debtor’s contractual obligation.
“In this regard, interest will be applied to outstanding balance as from 1st July 2023. It must, however, be noted that the principal amount remains due and payable, thus, we would like to urge all debtors who are gainfully employed or have income to make use of this opportunity and come forth to settle or make arrangements to start repaying their debts,” Kandume said.
“Waiving of interest does not mean debt- forgiveness, it certainly also doesn’t mean debts write-off. The waiving of interest has certainly made NSFAF loans cheaper and more affordable. Please repay your loan, it is the right thing to do!”
The NSFAF has so far collected about N$10 million since it started its debt collection initiative last year.
Over 130 000 former students who benefited from the fund between 1997 until 2015 have struggled to repay the loans.
