Government spending on student loans has dropped sharply this year, with expenditure down MVR 132.9 million compared to the same period last year.  
The state budget allocated MVR 768 million for student loans in 2025. However, according to the Finance Ministry’s Weekly Fiscal Development Report, only MVR 491.6 million had been disbursed as of November 13. By contrast, MVR 624.5 million was spent during the same period in 2024.  
The decline in student loan spending comes alongside a broader reduction in education expenditure. The Ministry of Higher Education has spent MVR 900.8 million out of its MVR 1.3 billion allocation this year, down MVR 124.1 million from last year’s MVR 1.02 billion. Similarly, the Education Ministry has spent MVR 3.1 billion of its MVR 4.4 billion budget, a decrease of MVR 114.1 million compared to last year.  
Concerns have been mounting over delays in student loan disbursements, stipends, and tuition fee payments, particularly for students studying abroad. Parents and students have complained of late responses to letters and emails, with many facing financial strain due to the delays.  
President Dr. Mohamed Muizzu (R) shakes hands with Higher Education Minister Dr. Ali Haidar Ahmed (L). (File Photo/President's Office)
Higher Education Minister Dr. Haidar acknowledged in Parliament earlier this year that payments are sometimes delayed due to incomplete information submitted by students. On May 13, Minister Ali Haidar Ahmed announced plans to launch a Higher Education Management System mobile application to handle complaints. Originally scheduled for October, the app is now in its testing phase, with the ministry promising completion within this month.  
The government spends around MVR 1.5 billion annually on student loans, disbursed to students every six months. Officials have pledged to shorten the disbursement stages and seek external support if necessary to ensure timely payments.