Education loan: Why should employers be held to account?


The draft law on University education loan schemes compels employers to enforce repayment, failure of which will attract penalties. (Doreen Umutesi)


RE: “Law on student loans could pose challenges to employers – experts” (The New Times, September 4).

Whatever employers and lawyers want, this is a historical moment in education. If your judgment begins with skepticism, your ruling will equally be minus.

Why does the Private Sector Federation (PSF) boss think this is a burden? The least PSF can do in this case is facilitating recovery; the Parliamentary Public Accounts Committee has always pointed fingers to incompetent accountants; it is through this initiative that access to higher education will become almost universal.

I am of the view that employers demand access to information relating to education loans. Educating many Rwandans is a collective responsibility that none of us should shy away from — default emanating from employers' indifference tantamount to denial of higher education to other generations to come. Moreover, our banks should be supported to succeed in this partnership.

I had anticipated that this law would oblige employers to finance higher education since they are ultimate beneficiaries of the scheme through competent graduates. With the advent of digital world, where Rwandans are actively involved, recovery will be simple; like they say where there is a will there is a way.



JK’s opinion focuses on one side without assessing its implication on the job market and financial costs for employers. I believe every employer would go for employees who pose minimum risks. Obviously, it will be a key factor in the hiring process.



The question here is legality not what we think. A contract is entered into between the financial institution and the creditor. Where does the employer enter in this equation? Which employer will hire an employee with a loan when there is another one without a university education loan to service, given the additional burden that is placed on the employer's shoulders?

I would suggest that they instead partner with the credit bureau to address the issue but not oblige the employer to deduct money from the employee's salary.

Let us not forget that we are talking about a private contract between two parties, otherwise we may end up with laws that are repugnant to each other.

In any case, this is a loan like any other from any financial institution. Why promulgate a special law for this kind of loan only? This is an investment loan with returns and should be treated as such.