Government Assures Continued Support for Students Under ESP Education Loan Scheme

The Government has assured students and parents that support for higher education financing will continue under the Economic Stimulus Programme (ESP) Education Loan Scheme, despite overwhelming demand that recently led to the temporary closure of applications.

The issue was raised during the third round of Question Hour in the National Assembly by Menbi–Tshenkhar Member of Parliament Tempa Dorji, who sought clarification from the Ministry of Industry, Commerce and Employment (MoICE) on the sudden suspension of applications and the measures being taken to ensure deserving students are not denied access to higher education due to funding limitations.

Responding to the concerns, Minister for Industry, Commerce and Employment Namgyal Dorji informed the House that the education loan scheme has emerged as one of the most successful components of the Economic Stimulus Programme.

According to the Minister, participating financial institutions received an unprecedented number of applications immediately after the scheme was launched. Demand was so strong that some banks reached their allocated targets on the very first day, forcing them to temporarily halt the acceptance of new applications.

“The response to the programme exceeded our expectations,” Lyonpo Namgyal Dorji said. “However, following concerns raised by students and parents, the Government directed financial institutions to keep the application window open for one month to ensure that more students had the opportunity to apply.”

The Minister said the Government recognizes the growing demand for higher education financing and remains committed to supporting students pursuing further studies.

“No deserving student from a low-income or financially disadvantaged family should miss the opportunity to pursue higher education because of financial constraints,” he said, adding that additional budgetary support would be considered should demand continue to rise.

To date, around 500 students have benefited from the scheme. The Minister noted that loan approvals are processed through a transparent system based on established eligibility criteria to ensure fairness, accountability, and equal opportunity for all applicants.

The discussion comes at a time when many Bhutanese families are facing rising education costs, particularly for students pursuing studies abroad or enrolling in private institutions. For many households, education loans have become an essential source of financial support.

Parents have welcomed the Government’s decision to extend the application period following the initial closure of applications. Many said the move demonstrated the Government’s responsiveness to public concerns.

Tashi Dorji, a father of three, said the programme has provided hope to families struggling to meet the high cost of tertiary education.

“Without this loan scheme, many parents would find it difficult to support their children’s education. The extension allowed more students to submit their applications and gave families like ours much-needed reassurance,” he said.

Similarly, Pema Dorji, a high school graduate, said the overwhelming response to the scheme reflects both the aspirations of Bhutanese youth and the growing need for accessible financing options.

“The large number of applications shows how important higher education is for young people and why continued financial support is necessary,” he said.

Education advocates and members of the public have also welcomed the Government’s assurance that additional funding may be made available if required. However, some have called for a more sustainable long-term financing mechanism to ensure future students can access support without uncertainty during application periods.

The issue generated considerable discussion in the National Assembly, underscoring the importance of accessible education financing as Bhutan continues to invest in human capital development. Members acknowledged that higher education plays a critical role in building a skilled workforce, expanding opportunities for young people, and supporting the country’s long-term socio-economic development.

With the Government reaffirming its commitment to supporting students, many families across the country remain hopeful that access to higher education will become more inclusive and affordable in the years ahead.

Sherab Dorji, Thimphu

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