PM Gonsalves urges students to repay loans

Prime Minister Dr Ralph Gonsalves is urging delinquent recipients of the economically disadvantaged students loans to make a conscious effort to repay.

This call was made during a press briefing last week at Cabinet Room, when he disclosed that there is a 30 per cent delinquency rate on repayment of student loans.{{more}}

“I know that the vast majority of students pay back, because the delinquents are about 30 per cent. Which means that 70 per cent of the students pay back. I am urging those who are delinquent, please.

“You not paying back may make it difficult for your younger brother or their sister to get to university,” the Prime Minister said.

He said about 1,200 persons have benefited from the economically disadvantaged loan programme since inception and of the 521 students who have benefited from the programme since 2010, 161 have been delinquent in their payments, which amounts to nearly $3 million, while the overall outstanding balance is currently $21.8 million.

“When you get student loan is not a student gift, and the only way in which the programme is going to be properly sustained is if it is revolving. So you get your university degree by way of the student loan, you have an obligation to pay your student loan,” he pointed out.

He noted that of those who got loans, only a few cannot find jobs locally, regionally or internationally and he encouraged those who are having difficulty repaying their loan to visit the student loan company and explain themselves.

“I have started this programme by trusting the young people completely. Please let us work together on this. If you have difficulty for one reason or the other making your payments, go to the student loan company and explain, restructure where possible this loan. Don’t just stay away and if you migrate, don’t just lose yourself and don’t have any contact with it,” Gonsalves noted.

Gonsalves explained that the loans not only cover tuition, but they also cover the economic costs of the students.

He noted that for the students who are unsuccessful in securing loans, tuition grants, which are paid for with funds from the central government, are also provided.

“What the student has to pay if they don’t get a scholarship, they pay their tuition and they pay for their living expenses; the tuition is in the region of about $10,000 a year. But in order to help the students, we provide over 80 tuition grants. They get that from the central government; of course, not everybody gets a tuition grant, and there’s a pool of money which I put aside for that and there are criteria.”

He stated that many persons often ask why doesn’t the bank go after the delinquent students.

“The reason why the bank or credit union gives the loan is because I, as Minister of Finance … guarantee that if the student does not pay, the Govern-ment will pay,” he explained.

Gonsalves stated that he is pleased that an increasing number of persons are taking their courses online and are taking advantage of the ever expanding University of the West Indies Open Campus.

He mentioned that he is planning on visiting the St Vincent and the Grenadines Community College, along with representatives from the Ministry of Education to explain to the students about financing for university education.(CM)