EMPLOYERS' COMPLIANCE ON RECOVERY OF HIGHER EDUCATION STUDENTS’ LOANS
The
Higher Education Student’ Loans Board (HESLB), among other things, is
entrusted by the Government through HESLB Act. No.9 of 2004 (as amended)
to recover all loans owing by former students loan beneficiaries who
benefited from Higher Education Loans since July, 1994 to date so that
the same money can be used for re-lending to other needy students.
In the process of recovering higher education loans, employers are required to fulfill the
following mandatory obligations as mentioned in the above cited Act for
assisting the Board to recover loans from employed loan beneficiaries:-
(i) Upon
employment of a person who undertook his/her studies at any university
or other Higher Learning Institutions within or outside the country for a
Degree or Advanced Diploma from 1994 to date, the employer must inform
the Board in writing within a period of 28 days from the date of such
employment [Sect. 20 (1) (C) of the ACT.]
(ii) Once
the Board confirms that the employee is a loan beneficiary, the
employer is required to inform the Board within 30 days of the
employment of him/her and to deduct from such employee’s salary a
certain monthly loan repayment installments as determined by the Board
and remitting the same to the Board within 15 days after the end of each
month. [Sect. 20 (2) of the ACT.]
In the context of the above, the Controller and Auditor General (CAG) has included the above
mentioned statutory requirements in a list of issues to be covered
while undertaking audit activity Public Institutions to enhance
compliance by employers with requirement of HESLB Act.
It
is the HESLB’s conviction that Public Service Employers will extend the
necessary co-operation to the CAG, in order to avoid unnecessary legal
measures.
Issued by:
EXECUTIVE DIRECTOR
HIGHE EDUCATION STUDENTS’ LOANS BOARD
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