While new schemes have been introduced for students, Finance Minister Professor Biman Prasad says to obtain an equitable return of investment in the bond service, students with overseas scholarship schemes will be bonded 2.5 times of the duration of the study.

He says effective from 1st January 2025, new and continuing students will be granted only two probations for failing to maintain the required GPA and pass rate for respective schemes after which they will be suspended for one academic term.

The three-probation granted from the Covid-19 period will no longer be applicable.

He adds that as a responsible government, they need to ensure that they are able to reap the benefits of investment.

“We are introducing a 50 percent penalty on non-served bond periods. If students do not wish to fully serve the bond period and pay off the remaining bond service on apportioned amount, then a penalty will be applied on the remaining amount. A 50 percent penalty will be applied to the balance of the bond service. The 50 percent penalty is based on the previously used penalty rates, which was initially set at 100 percent, reduced to 50 percent and later reduced to 10 percent. The rationale is in the national interest and to get maximum return of the investment by having the graduates to serve the country.”

Prasad says all students have to fully serve their bond.

He says if they choose to migrate before the completion of the bond, then they will have to pay the remaining balance with a 50 percent penalty before leaving the country.

If students do not have sufficient funds to pay off, the overseas employer should clear full payment and students can make repayment arrangements with them.

Effective from 1st August 2024, graduates will not be allowed to make arrangements to do bond repayment from overseas unless determined by FRCS and TSLS on a case-by-case basis.