To align national education financing with Islamic principles, President Dr Mohamed Muizzu has announced the removal of administrative fees from all government-issued student loans. The reform aims to ensure that higher education and training loans, whether for study in the Maldives or abroad adhere to Shariah-compliant financial practices.
The President made the announcement through a statement published on his official X account on 27th March 2025. The Ministry of Higher Education, Labour, and Skills Development has been instructed to revise the structure of education loans to exclude all non-Shariah-compliant elements, including the existing 1 per cent administrative fee.
According to the directive, the administrative charge currently added to the repayment of student loans will be abolished. Furthermore, for those who have already taken loans under the existing system, their outstanding balances will be recalculated to deduct the previously imposed administrative fee. This adjustment ensures fairness for former recipients while fully transitioning to a Shariah-compliant model.
This policy change is part of the government’s broader initiative to enhance accessibility to higher education while respecting religious values. The Ministry regularly issues student loan schemes to support Maldivians pursuing higher education both locally and internationally. In 2023 alone, over 1,000 students were granted loans under government schemes. In addition, the Ministry conducted a nationwide effort to consolidate data on Maldivian students studying overseas. By the end of last year, more than 2,000 students had registered through the Ministry, reflecting the growing demand for structured financial assistance in international education.
President Dr. Muizzu’s decision is expected to have a wide-reaching impact on students and families who rely on government loans to pursue their academic goals. It also marks a policy shift that places religious compliance and financial fairness at the forefront of national education financing.
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