Latest update February 3rd, 2025 7:00 AM
Latest News
- Govt. assures Exxon not hiding true oil data
- Sheriff Holdings distances self from convicted fraudster Ed Ahmad over suspicious Ogle land deal
- Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China
- Soesdyke man killed after car crashes into truck
- Patterson pillories govt. for reckless spending of oil money
UG Student Loans…Min. of Finance extends waivers, offers rewards to borrowers with up-to-date payments
The Ministry of Finance announced yesterday that it will extend the period for waivers and to award borrowers with a reduction of the interest payable on the outstanding Student Loans owed by graduates of the
The Student Loan Agency, University of Guyana Turkeyen Campus.
University of Guyana.
According to the Ministry, persons with a student loan will be granted a 75% reduction in the accumulated arrears of interest on their accounts if they are able to clear their indebtedness in full no later than October 31, 2016.
Those who wish to bring their accounts up-to-date will be granted a 50% reduction in the accumulated arrears of interest, if their accounts are brought up-to-date by October 31, 2016. In the event that a borrower defaults, consequently, the interest which was waived will be restored in full to the account.
The Ministry also took into consideration borrowers whose accounts were current for at least two years as of July 31, last, will benefit from a 50% reduction on the interest accumulated prior to the repayment due date of the loan.
This specific reduction will be awarded through a monthly credit set against future payments. If the borrower’s account goes into arrears, all interest waived will be restored to the account.
Minister of Finance, Winston Jordan, had made a similar offer in July, whereby borrowers who were in default were expected to bring their accounts up-to-date by August 31. However, if this could not be done and borrowers were able to bring their accounts up-to-date by September 30 of this year, they would receive a 50% reduction in accumulated arrears of interest.
Greater attention has been placed on graduates of the University repaying their loans since a forensic audit into the University’s loan agency had revealed that from the year 1994 to May last year, 69.4% of 25,335 student loans were described as delinquent because students were not honouring their indebtedness.
Loans issued during the audit period, (academic years 2011-2012 to 2014-2015) reached a total sum of $1,581,422,277 of which $1,432,669,005 was issued to students at Turkeyen Campus and $148,753,272 was issued to students at the Tain Campus.
The total number of students who would have obtained loans up to December 31, 2014 was 25,335. The total value of the loans was $9,159,644,463. Of the total number of students who have received loans (25,335): 4,713 or 18.6% are recent graduates or are still students; 1,776 or 7% were able to repay their loans totalling $679,918,794 including principal and interest.
Five students had their loans written off while 1,278 or five percent have been paying. However, they have not been up-to-date, the report showed.
The report had also stated that there was a clear indication that the then Ministry of Finance and by extension, the Agency, did not pursue the defaulters with a view to recover their indebtedness.
The Ministry is now urging all borrowers to visit the Student Loan Agency without delay to discuss repayment plans, and how they can benefit from the offers which are now available.
The government has also extended the loan repayment centres, bringing into play entities; like Western Union, Bill Express, the commercial banks, and Mobile Money.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The PPP/C’s greatest liability
Peeping Tom Kaieteur News- One might have expected that a ruling party basking in the largesse of oil wealth would chart... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
