No clear answer has been given as to why the Samoa National Provident Fund's Educational Loan Scheme has been put on hold. Many are frustrated and want answers.

The Chief Executive Officer for SNPF, Lemalu Selesitina Meni-Reti was asked by the media last week about the reasons for the Education Scheme being halted, but no clear answer was given.

Last week, the SNPF paid out a four per cent dividend, which was welcomed by many. However, questions still linger on the education loan. Some parents claim they are going through some difficulties in trying to apply for the SNPF. 

Through this scheme, members can apply to borrow a sum of $1,000 up to a maximum of $10,000 for education purposes such as payment of school fees for members, including their children, textbooks and other educational materials. All payments are made directly to schools or suppliers.

According to the Samoa National Provident Fund policies, members can borrow up to 50 per cent of their contribution balance without any security, as this loan is secured against their contributions.

This new line of credit allows members to borrow up to 15 per cent of their total contribution, but to a maximum amount of $10,000 based on their contribution balance and ability to service the loan. Members with contribution balances exceeding $100,000 can apply up to a maximum of $15,000. 

 It has been confirmed by senior employees at SNPF that the Education Loan Scheme has been put on hold since January this year.

A woman who is a contributor said it was frustrating as she was looking forward to this use the scheme to pay for her daughter's tuition at the National University of Samoa.

"I was told it has been on hold, and this was the only option I was looking at to pay for my daughter's tuition of $2000 for this next semester," the mother said.

Another concerned father who works for the government is also feeling the hardship of trying to pay for his two daughters' tuition next semester.

"The SNPF Education Loan Scheme was a very useful way for us whose children are now in universities to get their tuition paid through this loan, but sadly, I was told last week it has been put on hold," this father said.

"Whatever reasons the SNPF management has for the halt of this scheme, they should reconsider it for the sake of our children who have reached the tertiary education level."

Meanwhile, it was disclosed last week, the for vehicle loans, the SNPF now demands a security which includes freehold property.