UNE: Changes to FIES are part of a series of setbacks imposed on education.

Following the enactment of Provisional Measure 785, concerning the reduction in the number of places in the FIES (Student Financing Fund), the Chamber of Deputies approved a substitute text formulated by the rapporteur, Alex Caziani (PTB-PR); among the main changes is the entry of banks into the financing system, previously guaranteed by the government; the National Union of Students (UNE) expressed criticism of the changes; "The program, which in 2014 alone served more than 700 students, will be reduced to less than 100 beneficiaries. Since the coup, a series of setbacks have been imposed on Brazilian education, from basic education to university," says the director of educational policies at UNE, Julia Louzada.

November 02, 2017, 23:28 PMUpdated June 27, 2018, 13:20 pm

Following the enactment of Provisional Measure 785, concerning the reduction in the number of places in the FIES (Student Financing Fund), the Chamber of Deputies approved a substitute text formulated by the rapporteur, Alex Caziani (PTB-PR); among the main changes is the entry of banks into the financing system, previously guaranteed by the government; the National Union of Students (UNE) expressed criticism of the changes; "The program, which in 2014 alone served more than 700 students, will be reduced to less than 100 beneficiaries. Since the coup, a series of setbacks have been imposed on Brazilian education, from basic education to university," says the director of educational policies at UNE, Julia Louzada (Photo: Romulo Faro).

Forum Magazine "Under the guise that the changes to the Student Financing Fund (Fies) rules were intended to reduce default rates, the coup government is significantly reducing the number of scholarships offered," says federal deputy Paulo Pimenta (PT-RS), regarding the changes to the program promoted by the government of Michel Temer (PMDB).

After the publication of a Provisional Measure (MP 785) on the subject, yesterday (31), the Chamber of Deputies approved a substitute for the text formulated by rapporteur Alex Caziani (PTB-PR). Now, the matter will be processed in the Senate and must be voted on by the 17th. If approved in the second House, it will be up to Temer to sanction the proposal. Among the main changes is the entry of banks into the financing system, previously guaranteed by the government.

The National Union of Students (UNE) has expressed its criticism of the changes. "The program, which in 2014 alone served more than 700 students, will be reduced to fewer than 100 beneficiaries (...). Since the coup, a series of setbacks have been imposed on Brazilian education, from basic education to university. MP 785 is yet another of these attacks," stated Julia Louzada, director of educational policies at UNE.

Another point of criticism is the way students access the program. "Currently, all scholarships are granted to students with a family income of up to three minimum wages. With the new proposal, the program will classify students into three income brackets, in which only the first corresponds to students with an income of up to three minimum wages; the other two are for higher incomes. This will restrict access for the most vulnerable students," says Julia.

Julia also highlights the conflict of interest regarding the rapporteur of the proposal in the Chamber of Deputies. "Alex Canzani, who voted in favor of the coup, received a declared donation of R$ 200 in his campaign from the Atenas Maranhense Teaching Center, incorporated in 2011 into the Kroton group, one of the largest education companies in the world. If he who pays the piper calls the tune, we can assume that the large education companies will follow suit with this change. Just as the big banks continue to profit."

In addition to the changes already mentioned, the Provisional Measure requires universities to join a fund and for students to pay the loan installments immediately after graduation, ending the previous 18-month grace period before payments began.

The Provisional Measure creates the FIES Guarantee Fund (FG-FIES), with an initial contribution from the Federal Government of R$ 3 billion and proportional participation from universities. The text provides for the allocation of resources from regional funds to FIES, such as the Central-West Development Fund (FDCO), the Amazon Development Fund (FDA), as well as the BNDES (Brazilian Development Bank).