The University students' organisation Pulse has expressed concern over uncertainty on the future of the stipends system. It also insisted that stipends should not be converted into loans.

Pulse said it viewed stipends as a form of social benefits which helped the students to further their studies. Therefore, it said, stipends should never be threatened.

Referring to a recent proposal by the University Rector, which was yesterday backed by the Governor of the Central Bank, Pulse said it disagreed with any loan scheme instead of stipends.

It said it agreed that students should have the option whether to receive their stipends or not;. If not, the same amount should be invested in the Trust Fund as proposed by the Rector, and the students would be given tax-refunds when they were employed.

"However, students who would like to receive their stipend should not be forced to pay it back or engage in any other form of loan."

Pulse said the Trust Fund should not be sustained only by the funds of students who opt not to take their stipend, and the government should give tax incentives to companies to invest in it.

The students organisation also called for a revision of stipends to make allowance for inflation.