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.
HIGHE EDUCATION STUDENTS’ LOANS BOARD