Fies: Chamber approves debt renegotiation proposal – 09/05/2023 – Education

The Chamber of Deputies approved on Tuesday night (5) the bill that proposes a new renegotiation of student debts in Fies (Student Financing Fund).

Reported by Federal Deputy Flávia Morais (PDT-GO), the text authored by the Executive was approved in a symbolic vote (when there is no vote counting) and will proceed to the Senate.

The article also changed criteria for the contribution that educational companies make to the so-called Guarantor Fund, which works as a kind of guarantor of funding. In general terms, it increased the amounts that companies must pay to the fund, which has been criticized by the private sector.

The approved PL establishes that students who have overdue and unpaid debts by June 30 of this year will be able to negotiate them through a transaction.

For those with overdue debts for more than 90 days (considering the established period), there will be a 100% discount on charges and up to 12% of the principal amount for cash payment; or through installments in up to 150 monthly and successive installments —with a 100% reduction in interest and fines, but without reducing the principal amount.

In cases of overdue debts that have not been paid for more than 360 days and if the student is enrolled in the federal government’s CadÚnico (Single Registry) or has received Emergency Aid in 2021, there will be a discount of up to 99% of the consolidated debt amount (including the principal) if it is paid in full.

For students with overdue debts that have not been paid for more than 360 days, but who are not enrolled in CadÚnico or received Emergency Aid amounts in 2021, the discount will be up to 77% of the consolidated debt amount, if paid in full.

In Fies, the government pays the monthly fee, in whole or in part, for students in private institutions, and the debt is later paid by the students after a grace period. The program’s Guarantor Fund is funded by both the government and institutions and aims at the program’s sustainability in the face of high Fies defaults.

Since 2017, more than half of beneficiaries in the amortization phase are in arrears. Companies must commit, when joining Fies, to make contributions related to educational charges (which are monthly fees financed by the program).

In the case of changing the share of companies to the Fundo Garantidor, the government planned a ceiling of 40% on these educational charges —currently, this ceiling is 25% from the sixth year of membership. The calculation takes into account evasion and default variables.

In the initial version of the project, the ceiling percentage was 35%. The project was updated before the vote to 27.5% — a rate that was approved.

Companies and entities representing the sector defend maintaining the 25% on the grounds that, above that, the program may not be economically viable for colleges and universities. Private institutions also claim that default is a variable they cannot control and recent debt renegotiations and forgiveness discourage students from paying.

MEC and the government’s economic area discarded the lowest ceiling, as companies requested. Even initially defending the 40%, behind the scenes there was a willingness to get close to what was approved.

The issue of Fies debts was included at the request of the Lula government (PT) in a bill that initially dealt with the resumption of unfinished works in the area of ​​education and had been sent through an MP (provisional measure).

At that time, the government stated that the measure should generate investments of BRL 3.5 billion by 2026 for the conclusion of around 3,500 works.

Faced with the deadlock on the rite of processing the measures in Congress, there was an agreement for the government to send a bill with constitutional urgency.

In the new text, the Executive increased the scope of the matter and also included paralyzed or unfinished works in the health sector, creating the National Pact for the Resumption of Works and Engineering Services Destined for Basic and Professional Education and Health.

Use of resources for Culture was also discussed

The approved text also has a device that determines that during the term of the PAC (Growth Acceleration Program), the Ministry of Culture will be able to define guidelines for the application of resources from the Aldir Blanc Law for the construction, expansion and renovation of cultural spaces, as well as acquisition of equipment and collections and other national culture policies and programs.

The matter determines that a maximum of 30% of the values ​​of the Aldir Blanc Act may be used for these purposes. Of this percentage, up to 10% of the amounts must be used in specific national cultural policies and programs and at least 10% of the total amount for the National Culture Policy.

The measure was proposed by the Ministry of Culture in conjunction with deputies José Guimarães (PT-CE), leader of the government in the Chamber, Jandira Feghali (PC do B-RJ) and Maria do Rosário (PT-RS). Minister Margareth Menezes was in the Chamber this Tuesday to discuss the issue with parliamentarians.