The Education System in Malawi
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costs for research and publications are also very low. The level of funding is against a background where most of the equipment is old, obsolete, and unserviceable. This is particularly so in the fields of engineering and science. The capital budget to public institutions has been non existent, although some commitment to this has been made in the National Education Sector Plan (NESP). The libraries are also old and inadequate for the level of enrollments in the colleges. Donor funding to institutions for equipment has been limited, leaving institutions totally dependent on government subventions for these items. The World Bank has provided some learning and teaching resources to Chancellor College, the Polytechnic, and MZUNI as part of the rehabilitation and staff development program. SIU has also provided some resources to UNIMA colleges through direct financing and linkages with external universities. Universities should therefore prioritize those categories that are directly related to their core functions. Recommendations from the MIM report suggested that UNIMA should devise ways to reduce unit costs given the high percentage allocation to higher education in the education budget. This has not apparently been the case since unit costs for both institutions are increasing with MZUNI having a much higher unit cost in 2008 than UNIMA. Steps have been taken in the public institutions to reduce unit costs by out sourcing some non professional services in the UNIMA colleges like cleaning, security, and ground maintenance. This is a step in the right direction. The impact of this initiative on unit costs has not been felt because the reforms started in 2008 and outsourcing of student provisions will only start in 2009. Student Financing
The National University Student Loan Trust (NUSLT), which should lend and recover the loans from graduates, was established in 2005. Before then, students received grants and loans, which were never recovered. The Malawi model, like many others in the world, is the mortgage type loan with a fixed rate of payment over a period of time. Other countries use the income contingency system, which is based on a percentage of the salary of the borrowers when they are in employment until the loan is repaid. The main objective of the NUSLT is to improve access, especially for the “needy”23 from poor backgrounds, thereby ensuring equity. This also constitutes a form of cost sharing, which would in turn be a source of revenue for the universities. A silent and not often mentioned objective is the increase in motivation and serious pursuit of learning among students who are paying for their education (albeit in the future). Unlike loan schemes in other countries, this system does not apply a “means test.” It is reported that about one percent of the applicants are turned down based on the information provided by the guarantor. Non residential, mature entry students; those in non degree programs in the public universities; and those in accredited private universities are not eligible for loans from the Trust. Like many other student loan systems, the National University Student Loan Trust (NUSLT) is solely financed by the government, although the Trust is empowered to solicit additional resources for the Fund. The loan provides for the fees that comprise tuition and accommodation and are paid directly to the institution. A book allowance of MK10,000 is part of the loan and is