The Higher Education Loans And Scholarships

THE HIGHER EDUCATION LOANS AND
SCHOLARSHIPS ACT, 2016
A RRANGEMENT OF SECTIONS
PART I
PRELIMINARY P ROVISIONS
Section
1. Short title and commencement
2. Interpretation
PART II
THE H IGHER EDUCATION LOANS AND S CHOLARSHIPS B OARD
3. Establishment of Board
4. Seal of Board
5. Functions of Board
6. Composition of Board
7. Proceedings of Board
8. Committees
9. Emoluments
10. Director
11. Deputy Directors, Secretary and other staff
12. Disclosure of interest
13. Prohibition of publication or disclosure of information to
unauthorised persons
14. Oath on appointment
15. Immunity
PART III
THE H IGHER EDUCATION LOANS AND S CHOLARSHIPS F UND
16. Establishment of Fund
17. Disbursement from Fund
18. Fund Manager and other staff
19. Bank account
20. Investment of Fund
PART IV
ADMINISTRATION OF LOANS AND S CHOLARSHIPS
21. Eligibility for loan or scholarship
22. Application for loan or scholarship
23. Consideration of, and decision on, application for loan or
scholarship
Higher Education Loans and Scholarships [No. 31 of 2016 643
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K52.00 each

cholarships [No. 31 of 2016 643
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K52.00 each

644 No. 31 of 2016]
24. Extent of loan or scholarship
25. Conditions of loans and scholarships
26. Loans and scholarships offices at higher education
institutions
27. Obligations and liability of loan beneficiary
28. Obligations of employer
29. Obligations of Zambia Revenue Authority
30. Default and recovery of loans
31. Record of loans and scholarships
32. Loan insurance
PART V
F INANCIAL PROVISIONS
33. Funds of Board
34. Financial year
35. Accounts and audit
36. Annual report
PART VI
GENERAL PROVISIONS
37. Regulations
38. Savings and transitional provisions
Higher Education Loans and Scholarships

and audit
36. Annual report
PART VI
GENERAL PROVISIONS
37. Regulations
38. Savings and transitional provisions
Higher Education Loans and Scholarships

Short title
and Commen-
cement
Interpretation
An Act to establish the Higher Education Loans and
Scholarships Board; establish the Higher Education Loans
and Scholarships Fund; provide for the granting,
administration, investment, payment and recovery of
loans; provide for the administration and granting of
scholarships; facilitate the mobilisation of financial
resources for loans and scholarships; and provide for
matters connected with, or incidental, to the foregoing. [7th June, 2016
ENACTED by the Parliament of Zambia. PART I
PRELIMINARY P ROVISIONS
1. This Act may be cited as the Higher Education Loans and
Scholarships Act, 2016, and shall come into operation on such date
as the Minister may appoint by statutory instrument. 2. In this Act, unless the context otherwise requires—
“appointed date” means the date appointed by the Minister
under section one;
“associate” means—
(a) a person’s nominee or employee;
(b) a person’s conjugal partner or former spouse;
(c) a firm of which a person, or the person’s nominee, is
a partner or in charge or in control of its business
or affairs;
(d) a company in which a person or the person’s nominee,
Enactment
[No.

s nominee, is
a partner or in charge or in control of its business
or affairs;
(d) a company in which a person or the person’s nominee,
Enactment
[No.

31 of 2016 645Higher Education Loans and Scholarships
GOVERNMENT OF ZAMBIA
ACT
No. 31 of 2016
Date of Assent: 6th June, 2016

31 of 2016 645Higher Education Loans and Scholarships
GOVERNMENT OF ZAMBIA
ACT
No. 31 of 2016
Date of Assent: 6th June, 2016

Cap.

Cap.

1
is a director or is in charge or in control of its
business or affairs, or in which the person, that
person’s nominee, holds a controlling interest or
shares amounting to more than thirty percent of
the total share capital; or
(e) the trustee of a trust, where—
(i) the trust has been created by the person; or
(ii) the total value of the assets contributed by
the person before or after the creation of
the trust, amounts at any time, to not less
than twenty percent of the total value of
the assets of the trust;
“Board” means the Higher Education Loans and Scholarships
Board established under section three;
“Director” means the person appointed as Director under
section ten;
“committee” means a committee of the Board established
under section eight;
“continuing student” means a student who has passed the
examinations necessary to enable the student to advance
to the following year or stage of study;
“Emoluments Commission” has the meaning assigned to it in
the Constitution;
“extraordinary meeting” means a meeting convened at any
time for special business of the Board;
“Fund” means the Higher Education Loans and Scholarships
Fund established under section sixteen;
“Fund Manager” means a person appointed as such under
section eighteen;
“higher education” has the meaning assigned to it in the Higher
Education Act, 2013;
“Higher Education Authority” has the meaning assigned to it
in the Higher Education Act, 2013;
“higher education institution” has the meaning assigned to it
in the Higher Education Act, 2013;
“liability” means a debt, charge or obligation whether present
or future, actual or contingent and whether payable or to
be observed or performed in Zambia or elsewhere;
“loan” means a loan granted to a student by the Board for the
purpose of defraying the costs connected with the education
at a local higher education institution, including costs
Act No.

dent by the Board for the
purpose of defraying the costs connected with the education
at a local higher education institution, including costs
Act No.

4 of
2013
Act No. 4 of
2013
Act No. 4 of
2013
646 No. 31 of 2016] Higher Education Loans and Scholarships

4 of
2013
Act No. 4 of
2013
Act No. 4 of
2013
646 No. 31 of 2016] Higher Education Loans and Scholarships

connected with the board and lodging of the student for
the purposes of attending the higher education institution;
“loan beneficiary” means a student or former student who is
or was granted a loan under this Act;
“member” means a member of the Board;
“ordinary meeting” means a scheduled meeting of the Board;
“relative” means—
(a) a person’s son, daughter, brother, sister, nephew,
niece, parent, uncle, aunt, grandparent or cousin;
and
(b) a person’s spouse or the spouse of any of the persons
mentioned in paragraph (a);
“repeating student” means a student who, for any reason, is
compelled to repeat a term, semester or academic year;
“scholarship” means an award granted to a student by the
Board for the purpose of defraying the costs connected
with the student’s education at a local or foreign higher
education institution, including costs connected with the
board and lodging of the student for the purpose of
attending the higher education institution;
“Secretary” means the person appointed as Secretary of the
Board under section eleven;
“student” means a Zambian admitted to, or registered as a
student at, a local or foreign higher education institution
as a candidate for a degree, diploma or doctorate;
“Zambia Institute of Human Resources Management” means
the Zambia Institute of Human Resources Management
established under the Zambia Institute of Human
Resources Management Act, 1997; and
“Zambia Qualifications Authority” has the meaning assigned
to it in the Zambia Qualifications Authority Act, 2011.

Resources Management Act, 1997; and
“Zambia Qualifications Authority” has the meaning assigned
to it in the Zambia Qualifications Authority Act, 2011.

PART II
THE H IGHER EDUCATION LOANS AND S CHOLARSHIPS B OARD
3. There is established the Higher Education Loans and
Scholarships Board which is a body corporate with perpetual
succession and a common seal, capable of suing and of being sued
in its corporate name, and with power, subject to the provisions of
this Act, to do all such acts and things as a body corporate may, by
law do or perform. Act. No. 11
of 1997
Establishment
of Board
Act. No. 13
of 2011
[No. 31 of 2016 647Higher Education Loans and Scholarships

e may, by
law do or perform. Act. No. 11
of 1997
Establishment
of Board
Act. No. 13
of 2011
[No. 31 of 2016 647Higher Education Loans and Scholarships

4. (1) The seal of the Board shall be such device as may be
determined by the Board and shall be kept by the Secretary. (2) The affixing of the seal shall be authenticated by the
Chairperson or the Vice-Chairperson and the Secretary or any
other person authorised in that behalf by a resolution of the Board. (3) A contract or instrument which, if entered into or executed
by a person not being a body corporate, would not be required to
be under seal, may be entered into or executed without seal on
behalf of the Board by the Secretary or any other person generally
or specifically authorised by the Board in that behalf. (4) A document purporting to be a document under the seal
of the Board or issued on behalf of the Board shall be received in
evidence and shall be deemed to be so executed or issued, as the
case may be, without further proof, unless the contrary is proved. 5.

be received in
evidence and shall be deemed to be so executed or issued, as the
case may be, without further proof, unless the contrary is proved. 5.

(1) The functions of the Board are to—
(a) receive and consider loan and scholarship applications
from students for the award of loans and scholarships;
(b) administer loans and scholarships for students;
(c) determine the criteria and terms for the grant of loans and
scholarships, and the rate of interest and recovery of
loans;
(d) establish systems to secure the repayment of loans by
students and the efficient utilisation and application of
scholarships;
(e) monitor and evaluate the operations and performance of
the Fund and ensure accountability of the Fund by
determining appropriate procedures for its management;
(f) formulate policies and guidelines for the control and
management of monies for loans and scholarships and
ensure their implementation;
(g) formulate policies to determine—
(i) the terms of disbursement of money from the
Fund to students granted loans or scholarships
by the Board;
(ii) the maximum amount of money to be granted by
the Fund to students granted loans or
scholarships by the Board; and
(iii) the sectors of the economy in which the monies
of the Fund may be invested;
Seal of Board
Functions of
Board
648 No.

olarships by the Board; and
(iii) the sectors of the economy in which the monies
of the Fund may be invested;
Seal of Board
Functions of
Board
648 No.

31 of 2016] Higher Education Loans and Scholarships

31 of 2016] Higher Education Loans and Scholarships

Composition
of Board
(h) establish structures and guidelines to ensure fairness in
the disbursement and application of the Fund;
(i) advise the Minister on policy matters concerning provision
of scholarships and recovery of loans from loan
beneficiaries;
(j)promote the mobilisation of donations and grants from the
public and private sectors for educational purposes and
investment for purposes of the Fund;
(k) provide financial advice in educational matters to higher
education institutions, parents, students and investors in
the education sector;
(l) collaborate with organisations with similar functions within
and outside Zambia; and
(m) perform any other functions conferred on the Board by
or under this Act or any other written law.

similar functions within
and outside Zambia; and
(m) perform any other functions conferred on the Board by
or under this Act or any other written law.

(2) The Board may, in carrying out its functions under this
Act —
(a) cause to be kept and maintained a register and other
records of students granted loans and scholarships by
the Board;
(b) determine the maximum number of eligible students to be
granted loans and scholarships in a particular year based
on availability of funds;
(c) charge fees for services rendered by the officers and
other employees of the Board; and
(d) consider and approve its annual work plan, budget and
estimates and monitor and review its financial
statements. 6. (1) The Board consists of the following members appointed
by the Minister:
(a) one representative each of the Ministries responsible for—
(i) higher education;
(ii) finance;
(iii) foreign affairs; and
(iv) labour;
(b) a representative of the Public Service Management
Division;
(c) a representative of the Attorney-General;
(d) the Director-General of the Higher Education Authority;
(e) the Director of the Zambia Qualifications Authority;
[No. 31 of 2016 649Higher Education Loans and Scholarships

of the Higher Education Authority;
(e) the Director of the Zambia Qualifications Authority;
[No. 31 of 2016 649Higher Education Loans and Scholarships

(f) a representative of the Bankers’ Association of Zambia;
(g) a representative of the Zambia Federation of Employers;
(h) a representative of the Zambia Institute of Human
Resources Management; and
(i) the Director, as an ex-officio member. (2) A person shall not be appointed as a member of the Board
if that person—
(a) is not a citizen of Zambia;
(b) is an undischarged bankrupt;
(c) has a mental or physical disability that makes the person
incapable of performing the functions of a member; or
(d) is convicted of an offence under this Act or any other
written law and sentenced to imprisonment for a period
exceeding six months without the option of a fine. (3) The Chairperson of the Board shall be appointed by the
Minister. (4) The Board shall elect the Vice-Chairperson of the Board
from amongst themselves. (5) A member of the Board shall hold office for a period of
three years from the date of appointment and is eligible for re-
appointment for one further term of three years. (6) A member may resign upon giving one month’s notice, in
writing, to the Minister.

eligible for re-
appointment for one further term of three years. (6) A member may resign upon giving one month’s notice, in
writing, to the Minister.

(7) The office of member becomes vacant if the member—
(a) dies;
(b) is absent, without reasonable excuse, from three
consecutive meetings of the Board of which the member
had notice without the prior approval of the Board;
(c) ceases to be a representative of the organisation which
nominated the member;
(d) is found guilty of professional misconduct by the relevant
professional association or body;
(e) is convicted of an offence and sentenced to imprisonment
for a period exceeding six months without the option of
a fine;
(f)is mentally or physically incapable of performing the duties
of a member; or
(g) is declared bankrupt. 650 No. 31 of 2016] Higher Education Loans and Scholarships

or physically incapable of performing the duties
of a member; or
(g) is declared bankrupt. 650 No. 31 of 2016] Higher Education Loans and Scholarships

(8) The Minister shall, whenever the office of a member
becomes vacant before the expiry of the term of office, appoint
another person in place of that member but that person shall hold
office as a member only for the unexpired part of the term. 7. (1) Subject to the other provisions of this Act, the Board
may regulate its own procedure. (2) The Board shall meet for the transaction of its business at
least once in every three months at such places and times as the
Chairperson may determine. (3) Six members shall form a quorum at a meeting of the Board. (4) There shall preside at a meeting of the Board—
(a) the Chairperson;
(b) in the absence of the Chairperson, the Vice-Chairperson;
and
(c) in the absence of the Chairperson and the Vice-
Chairperson, such other member as the members
present may elect for the purposes of that meeting. (5) A decision of the Board on any question shall be by a
majority of the members present and voting at the meeting and in
the event of an equality of votes, the person presiding at the meeting
shall have a casting vote in addition to that person’s deliberative
vote.

nd in
the event of an equality of votes, the person presiding at the meeting
shall have a casting vote in addition to that person’s deliberative
vote.

(6) Where a member is for any reason unable to attend a meeting
of the Board, the member may, in writing, nominate another person
from the same organisation to attend the meeting in that member’s
stead and such person shall be deemed to be a member for the
purpose of that meeting. (7) The Board may invite a person whose presence is in its
opinion desirable to attend and to participate in the deliberations of
the meeting of the Board, but that person shall have no vote. (8) The validity of any proceedings, acts or decisions of the
Board shall not be affected by any vacancy in the membership of
the Board or by any defect in the appointment of any member or
by reason that any person not entitled to do so took part in the
proceedings. (9) The Board shall cause to be kept minutes of its proceedings. Proceedings
of Board
[No. 31 of 2016 651Higher Education Loans and Scholarships

ings. (9) The Board shall cause to be kept minutes of its proceedings. Proceedings
of Board
[No. 31 of 2016 651Higher Education Loans and Scholarships

8. (1) The Board may, for the purpose of performing its
functions under this Act, establish such committees as it considers
necessary and delegate to any of those committees such of its
functions as it considers fit. (2) The Board may appoint as members of a committee,
persons who are or are not members of the Board, except that at
least one member of the Board shall be a member of a committee. (3) A person serving as a member of a committee shall hold
office for such period as the Board may determine. (4) Subject to any specific or general direction of the Board, a
committee may regulate its own procedure. 9. A member of the Board or any committee of the Board
shall be paid such emoluments as the Emoluments Commission
may determine. 10. (1) The Board shall appoint a Director on such terms and
conditions as the Board may determine. (2) The Director shall be the chief executive officer of the
Board and shall be responsible, under the direction of the Board,
for the day-to-day administration of the Board. (3) The Director shall attend meetings of the Board and may
address those meetings but shall have no vote on any matter. 11.

inistration of the Board. (3) The Director shall attend meetings of the Board and may
address those meetings but shall have no vote on any matter. 11.

(1) The Board may appoint, on such terms and conditions
as it may determine, Deputy Directors, the Secretary and such
other staff as it considers necessary for the performance of the
functions of the Board. (2) The Secretary shall perform corporate secretarial duties
for the Board and such other functions as the Board may determine,
under the direction of the Board and the Director. 12. (1) A person who is present at a meeting of the Board or
any committee at which any matter is the subject of consideration,
and in which matter that person or that person’s relative or associate
is directly or indirectly interested in a private capacity shall, as
soon as is practicable after the commencement of the meeting,
declare such interest and shall not, unless the Board or the
committee otherwise directs, take part in any consideration or
discussion of, or vote on any question relating to that matter. Committees
Emoluments
Director
Deputy
Directors,
Secretary
and
other staff
Disclosure of
interest
652 No. 31 of 2016] Higher Education Loans and Scholarships

ees
Emoluments
Director
Deputy
Directors,
Secretary
and
other staff
Disclosure of
interest
652 No. 31 of 2016] Higher Education Loans and Scholarships

(2) A disclosure of interest made under subsection (1) shall be
recorded in the minutes of the meeting at which it is made. (3) A person who contravenes subsection (1) commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 13. (1) A person shall not, without the consent, in writing,
given by or on behalf of the Board, publish or disclose to an
unauthorised person, otherwise than in the course of duties of that
person, the contents of a document, communication or information
whatsoever, which relates to or which has come to the knowledge
of that person in the course of that person’s duties under this Act. (2) A person who contravenes subsection (1) commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.

liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.

(3) A person who, having any information which to the
knowledge of that person has been published or disclosed in
contravention of subsection (1), unlawfully publishes or
communicates the information to another person, commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 14. (1) A member of the Board shall, on appointment, take
an oath in accordance with the Official Oaths Act. (2) The Director, Deputy Directors, Secretary and other staff
of the Board shall, on appointment, take an oath in accordance
with the Official Oaths Act. 15. An action or other proceeding shall not lie or be instituted
against a member, a member of a committee of the Board or a
member of staff of the Board for or in respect of an act or thing
done or omitted to be done in good faith in the performance of any
of the functions conferred under this Act. PART III
THE H IGHER EDUCATION LOANS AND S CHOLARSHIPS F UND
16.

ne in good faith in the performance of any
of the functions conferred under this Act. PART III
THE H IGHER EDUCATION LOANS AND S CHOLARSHIPS F UND
16.

(1) There is established the Higher Education Loans and
Scholarships Fund to provide loans and scholarships to students
who require financial assistance or who are recognised for academic
excellence. Prohibition
of
publication
or
disclosure of
information
to
unauthorised
persons
Oath on
appointment
Cap. 5
Cap. 5
Immunity
Establishment
of Fund
[No. 31 of 2016 653Higher Education Loans and Scholarships

on
to
unauthorised
persons
Oath on
appointment
Cap. 5
Cap. 5
Immunity
Establishment
of Fund
[No. 31 of 2016 653Higher Education Loans and Scholarships

(2) Despite the generality of subsection (1), the Fund shall
provide—
(a) monies for granting loans to assist students to pursue higher
education within Zambia; and
(b) scholarships to assist students to pursue higher education
within or outside Zambia. (3) The Fund shall consist of—
(a) such monies as may be appropriated by Parliament for
the purposes of the Fund;
(b) such monies as are received by way of grants, gifts,
endowments, fees, loan repayments, interest and
donations;
(c) monies that may vest in or accrue to the Fund;
(d) charges and fees for services provided by the Board; and
(e) subject to the approval of the Minister, monies raised by
way of loans or interest accrued from any investment
made by the Board. 17. (1) There shall be paid from the Fund monies required to
meet the objectives of the Fund as may be approved by the Board
in accordance with section sixteen. (2) The Fund shall not be used to provide personal emoluments,
personal loans or for investment in any manner other than that
authorised under this Act or any other written law for the purposes
of the Fund. 18.

s,
personal loans or for investment in any manner other than that
authorised under this Act or any other written law for the purposes
of the Fund. 18.

(1) The Board may, with the approval of the Minister,
appoint a Fund Manager to manage the affairs of the Fund. (2) The Board may appoint such other staff as the Board
considers necessary to assist the Fund Manager. (3) The Fund Manager appointed under subsection (1) is
responsible to the Board but shall report to the Director for
administrative purposes. 19. (1) The monies forming part of the Fund shall, pending
the investment or application of the monies in accordance with this
Act, be paid or transferred into a dedicated bank account with a
registered bank. (2) The monies of the Fund shall be index- linked. (3) The interest and income earned on the cash deposits of
the Fund shall, subject to the approval of the Minister responsible
for finance, be tax free. Disbursement
from Fund
Fund
Manager
and other
staff
Bank
account
654 No. 31 of 2016] Higher Education Loans and Scholarships

for finance, be tax free. Disbursement
from Fund
Fund
Manager
and other
staff
Bank
account
654 No. 31 of 2016] Higher Education Loans and Scholarships

20. The Board may, with the approval of the Minister, invest
any monies of the Fund that are not immediately required for the
purposes of the Fund in the manner authorised by the Minister, in
writing. PART IV
ADMINISTRATION OF LOANS AND S CHOLARSHIPS
21. (1) A student is eligible for consideration for a loan if the
student—
(a) is admitted to, or registered as a student at, a higher
education institution within Zambia for a course of at
least one academic year’s duration; and
(b) satisfies such other conditions as the Minister may
prescribe by statutory instrument. (2) A student is eligible for consideration for a scholarship if
the student satisfies such conditions as the Minister may prescribe
by statutory instrument. 22. (1) A student who wishes to be considered for the grant
of a loan or scholarship shall apply to the Board in the prescribed
manner and form. (2) A person who, in connection with an application for a loan
or scholarship, gives false or misleading information to the Board,
commits an offence and is liable, upon conviction, to a fine not
exceeding five hundred thousand penalty units or to a term of
imprisonment not exceeding five years, or to both. 23.

e, upon conviction, to a fine not
exceeding five hundred thousand penalty units or to a term of
imprisonment not exceeding five years, or to both. 23.

(1) The Board shall, within forty-five days from the date
of the closure of the application period, consider applications for
loans or scholarships and make a determination granting or not
granting a loan or scholarship in respect of each application. (2) The Board shall inform an applicant of its decision on the
application within seven days from the date of making the
determination referred to in subsection (1). 24. (1) Subject to the provisions of this Act, a loan or
scholarship granted to a student shall not exceed the aggregate
of—
(a) the fees payable to the higher education institution per
academic year;
(b) a prescribed sum of money per academic year to assist in
defraying the cost of books and other supplies required
by the student in the student’s faculty or department at
the higher education institution; and
Investment
of Fund
Eligibility
for
loan or
scholarship
Application
for
loan or
scholarship
Consideration
of, and
decision on,
application
for
loan or
scholarship
Extent of
loan or
scholarship
[No. 31 of 2016 655Higher Education Loans and Scholarships

tion
of, and
decision on,
application
for
loan or
scholarship
Extent of
loan or
scholarship
[No. 31 of 2016 655Higher Education Loans and Scholarships

(c) a living allowance in the prescribed amount per academic
year. (2) The fees or other charges that are payable to a higher
education institution by a student granted a loan or scholarship shall
be paid by the Board directly to the institution. (3) The Board shall, in granting a loan to a student, require
repayment of the loan at such times within such periods as the
Board may determine. 25. (1) A loan or scholarship granted by the Board may be
subject to such conditions as the Board may determine. (2) A loan or scholarship shall be granted in respect of a
particular course of study and shall not be used for any other
purpose. 26. (1) The Board may, in consultation with a higher education
institution, operate an office at the higher education institution for
purposes of administering loans and scholarships to students of
that higher education institution.

e an office at the higher education institution for
purposes of administering loans and scholarships to students of
that higher education institution.

(2) The office referred to in subsection (1) may, on behalf of
the Board—
(a) administer loans and scholarships granted to students
admitted to, or registered at, the institution;
(b) receive loan and scholarship applications from students
admitted to, or registered at, the institution;
(c) consider and assess applications using the criteria for the
granting of loans and scholarships determined by the
Board;
(d) grant loans and scholarships if the criteria are met, after
ascertaining that funds are available; and
(e) enter into written agreements with students granted loans
or scholarships on terms and conditions determined by
the Board. 27. (1) Subject to this section, a loan beneficiary shall repay
the loan and any interest or other additional charges accruing on
the loan in accordance with the loan agreement entered into between
the Board and student. (2) A loan beneficiary may repay the loan wholly or in part
before the due date. Conditions
of
loans and
scholarships
Loans and
scholarships
offices at
higher
education
institutions
Obligations
and liability
of loan
beneficiary
656 No. 31 of 2016] Higher Education Loans and Scholarships

ips
offices at
higher
education
institutions
Obligations
and liability
of loan
beneficiary
656 No. 31 of 2016] Higher Education Loans and Scholarships

(3) A loan beneficiary shall, in accordance with this Act or
any other written law, within one year after completion of the studies
in respect of which the loan was granted or within such period as
the Board may determine—
(a) inform the Board of the beneficiary’s contact address;
(b) begin repayment of the loan together with any interest
accrued on the loan; and
(c) if the loan beneficiary is in formal employment, authorise
the employer to deduct the loan repayment and to remit
it to the Board in such manner as the Board may direct. (4) A loan beneficiary who is self-employed in any trade,
occupation or profession upon completion of the studies in respect
of which the loan was granted or upon termination of such studies
for any reason shall, not later than twelve months after the
completion or termination of studies or engagement in self-
employment, remit to the Board such amounts of money as the
Board may determine for the purpose of settling the loan. (5) A failure by a loan beneficiary to comply with the obligations
specified in this section renders the loan immediately repayable. 28.

ing the loan. (5) A failure by a loan beneficiary to comply with the obligations
specified in this section renders the loan immediately repayable. 28.

(1) The Board may, by written notice, inform the employer
of a loan beneficiary—
(a) that the loan beneficiary is indebted to the Board on
account of a loan granted by the Board to the loan
beneficiary; and
(b) concerning the deductions that the employer has to make
from the remuneration of the loan beneficiary. (2) An employer who is given notice under subsection (1) shall
make deductions from the remuneration payable by the employer
to the loan beneficiary in accordance with prescribed scales. (3) An amount deducted by an employer under subsection (2)
shall be paid to the Board and the amount so paid over shall be
regarded as a proportionate discharge of the loan by the loan
beneficiary. (4) An employer who fails to make a deduction and payment
in accordance with this section is liable to a penalty equal to ten
percent of the total amount of the repayment for each month that
the loan remains unpaid. (5) The Board shall bear the administration costs for the
deductions made by the employer. Obligations
of employer
[No. 31 of 2016 657Higher Education Loans and Scholarships

r the administration costs for the
deductions made by the employer. Obligations
of employer
[No. 31 of 2016 657Higher Education Loans and Scholarships

29. Notwithstanding the provisions of the Income Tax Act
on confidentiality of taxpayer’s information, the Zambia Revenue
Authority shall, at the request of the Board, furnish the Board
with the names and address of the employer of a loan beneficiary,
if such information is known to the Zambia Revenue Authority. 30. (1) Where a loan beneficiary fails to make repayments,
in accordance with the loan agreement, the Board may place the
loan beneficiary’s name on a list of defaulting debtors published
by any person or body whose business it is to compile and publish
such lists. (2) The Board shall, before placing a loan beneficiary on a
list referred to in subsection (1)—
(a) notify the loan beneficiary of the failure to make
repayments and the intention of the Board to act in
terms of subsection (3); and
(b) afford the loan beneficiary a reasonable opportunity to
pay the amount in arrears on the loan. (3) A debt owed by a loan beneficiary who defaults on
repayment of the loan is recoverable as a civil debt owing to the
Board.

in arrears on the loan. (3) A debt owed by a loan beneficiary who defaults on
repayment of the loan is recoverable as a civil debt owing to the
Board.

(4) The Board shall, for the purpose of repayment of a
loan —
(a) enforce the debt incurred by a loan beneficiary in
accordance with the applicable laws;
(b) where a loan beneficiary is outside Zambia, request the
Zambian mission in the country in which the defaulting
loan beneficiary is located to assist in repatriating the
funds owing at the loan beneficiary’s own expense;
and
(c) add any expenses incurred by the Board and other
necessary costs of a defaulting loan beneficiary to the
amount loaned. 31. The Board shall keep and maintain a record of the loan
and scholarship applications and grants and awards and related
information for a minimum period of ten years from the date of
the repayment of the loan. 32. (1) The Board shall insure loans granted under this Act
against such risks as the Board may determine. (2) The insurance premium payable under this section shall
be borne by the loan beneficiary. (3) The Board may appoint a loan insurance provider on such
terms and conditions as the Board considers necessary. Obligation of
Zambia
Revenue
Authority
Cap. 323
Default and
recovery of
loans
Record of
loans
and
scholarships
Loan
insurance
scheme
658 No.

ecessary. Obligation of
Zambia
Revenue
Authority
Cap. 323
Default and
recovery of
loans
Record of
loans
and
scholarships
Loan
insurance
scheme
658 No.

31 of 2016] Higher Education Loans and Scholarships

31 of 2016] Higher Education Loans and Scholarships

PART V
FINANCIAL PROVISIONS
33. (1) The funds of the Board shall consist of such monies
as may—
(a) be appropriated to the Board by Parliament;
(b) be paid to the Board by way of grants or donations; or
(c) vest in or accrue to the Board. (2) The Board may, subject to the approval of the Minister—
(a) accept monies by way of grants or donations from any
source within or outside Zambia; and
(b) raise by way of loans or otherwise, such monies as it
may require for the discharge of its functions. (3) There shall be paid from the funds of the Board—
(a) the emoluments of the members and staff of the Board;
(b) such travelling and other allowances for the members
and the members of a committee when engaged on the
business of the Board, at such rates as the Emoluments
Commission may approve; and
(c) any other expenses incurred by the Board in the
performance of its functions under this Act. (4) The Board may, with the approval of the Minister, invest
in such manner as it considers appropriate such funds of the Board
that it does not immediately require for the discharge of its
functions. 34.

invest
in such manner as it considers appropriate such funds of the Board
that it does not immediately require for the discharge of its
functions. 34.

The financial year of the Board shall be a period of twelve
months ending on 31st December in each year. 35. (1) The Board shall cause to be kept proper books of
accounts and other records relating to its accounts. (2) The accounts of the Board shall be audited annually by
the Auditor General or an auditor appointed by the Auditor General. (3) The Auditor General’s fees shall be paid by the Board. 36. (1) As soon as practicable, but not later than ninety days
from the end of the financial year, the Board shall submit to the
Minister a report concerning its activities during the financial year. (2) The report referred to in subsection (1) shall include
information on the financial affairs of the Board and there shall be
appended to the report—
Funds of
Board
Financial
year
Accounts
and audit
Annual
report
[No. 31 of 2016 659Higher Education Loans and Scholarships

l be
appended to the report—
Funds of
Board
Financial
year
Accounts
and audit
Annual
report
[No. 31 of 2016 659Higher Education Loans and Scholarships

(a) an audited balance sheet;
(b) an audited statement of comprehensive income; and
(c) such other information as the Minister may require.
(3) The Minister responsible for finance shall cause to be
prepared an annual statement of the income and expenditure of
the Board to be laid before the National Assembly.
PART VI
GENERAL P ROVISIONS
37. (1) The Minister may, by statutory instrument, make
regulations for the better carrying out of the provisions of this
Act.
(2) Despite the generality of subsection (1), the regulations
made under that subsection may prescribe the—
(a) manner and form of applying for a loan or scholarship;
(b) loan application fees or other charges for loans;
(c) form of register to be maintained by the Board;
(d) form of insurance scheme to be established and the
application of the scheme;
(e) modalities of ensuring the efficient and effective
recovery of loans; and
(f) measures for tracing loan beneficiaries for purposes of
ensuring the repayment of loans.
38. The savings and transitional provisions are as set out in
the Schedule.
Regulations
Savings and
transitional
provisions
660 No. 31 of 2016] Higher Education Loans and Scholarships

provisions are as set out in
the Schedule.
Regulations
Savings and
transitional
provisions
660 No. 31 of 2016] Higher Education Loans and Scholarships

SCHEDULE
(Section 38)
SAVINGS AND TRANSITIONAL P ROVISIONS
1. The Bursaries Committee constituted pursuant to the
Education (Bursaries Committee) Regulations, 1973, shall stand
dissolved on the appointed date. 2. (1) On or after the appointed date, the Minister may, by
statutory instrument, approve arrangements under which all or some
of the public officers from the Bursaries Committee shall be
transferred to the Board from the public service. (2) Where a person is transferred in accordance with the
arrangements made under subparagraph (1), the terms and
conditions of that person with the Board shall be no less favourable
than those applicable while in the public service, and for the purposes
of determining rights to, or eligibility for, any pension, gratuity, leave
or other benefits, the pensionable service of that person with the
public service shall be treated as continuous service. 3.

pension, gratuity, leave
or other benefits, the pensionable service of that person with the
public service shall be treated as continuous service. 3.

(1) On or after the appointed date, there shall be transferred
to, vest in and subsist against the Board by virtue of this Act and
without further assurance—
(a) the affairs of the Bursaries Committee; and
(b) subject to this Act, all property, rights and obligations which
immediately before the appointed date were the property,
rights and obligations of the Government in respect of
Bursaries Committee.

obligations which
immediately before the appointed date were the property,
rights and obligations of the Government in respect of
Bursaries Committee.

(2) Except as provided in this Act, every deed, bond and
agreement, other than an agreement for personal service, to which
the Government was a party immediately before the appointed date
in respect of the Bursaries Committee, whether or not of such a
nature that rights and obligations under it could be assigned shall,
unless its subject matter or terms make it impossible that it should
have effect as modified, as provided under this paragraph, have
effect as from the date of its assignment as if—
(a) the Board had been party to it;
(b) for a reference to the Government there were substituted,
with respect to anything falling to be done on or after
the appointed date, a reference to the Board; or
(c) for a reference to an officer of the Bursaries Committee,
not being a party to it and beneficially interested in it,
Vesting of
assets and
liabilities
Dissolution
of Bursaries
Committee
S. I. No. 182 of 1973
Transfer of
staff
[No. 31 of 2016 661Higher Education Loans and Scholarships

and
liabilities
Dissolution
of Bursaries
Committee
S. I. No. 182 of 1973
Transfer of
staff
[No. 31 of 2016 661Higher Education Loans and Scholarships

there were substituted, with respect to anything falling
to be done on or after the appointed date, a reference
to such officer of the Board as the Board shall
designate. 4. (1) Where under this Act, any property, rights or obligations
of the Government through the Bursaries Committee are deemed
to be transferred to the Board in respect of which transfer a written
law provides for registration, the Board shall make an application,
in writing, to the appropriate registration authority for registration
of the transfer. (2) The registration authority referred to in subparagraph (1),
shall make such entries in the appropriate register as shall give
effect to the transfer and, where applicable, issue to the transferee
concerned a certificate of title in respect of the property or make
necessary amendments to the register and shall endorse the deeds
relating to the title, right or obligation concerned and registration
fees or other duties shall not be payable in respect of the
transaction. 5. (1) Any legal proceeding or application pending
immediately before the appointed date by or against the
Government in respect of the Bursaries Committee may be
continued by or against the Board.

ing
immediately before the appointed date by or against the
Government in respect of the Bursaries Committee may be
continued by or against the Board.

(2) After the appointed date, proceedings in respect of any
right or obligation which was vested in, held, enjoyed, incurred,
suffered by, or sustained against the Government in respect of
the Bursaries Committee, may be instituted by or against the Board. Registration
of property
Legal
proceedings
662 No. 31 of 2016] Higher Education Loans and Scholarships