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Jul 20, 2016 News
The Sub-Committee reviewing and implementing the criteria for accessing student loans for University of Guyana students is completing its report for submission to Cabinet.
This is according to Public Relations Officer (PRO) of the Ministry of Finance, Wanita Huburn.
Huburn said that the Cabinet will first deliberate and then make decisions with respect to the way forward before making public pronouncements on the matter.
In response to questions by Kaieteur News, the PRO also provided information on the time frame in which students are given to repay the monies. She outlined that borrowers have one year from the time of graduation to begin repaying their loans.
“The Student Loan Agency monitors all repayments,” Huburn added.
A recent forensic audit into the Ministry of Finance’s Student Loan Agency (SLA) revealed that from 1994 to May 2015, some 17,567 or 69.4% of 25,335 student loans were deemed delinquent because students were not honouring their indebtedness.
The audit report contained names of some 488 persons who were deemed “delinquent” in the loans. The list included the names of prominent Guyanese professionals and politicians. The Ministry of Finance has since taken steps to recover the outstanding monies owed to the Student Loan Agency by graduates of the University of Guyana.
The Finance Ministry PRO had earlier revealed that the Department is in the process of upgrading the Student Loan Agency via the sub-committee set up to oversee matters of loan recovery.
According to Huburn, current student borrowers have to meet only criteria before they are granted the funds; the student must have been accepted for a programme of study at the University of Guyana.
“Student Loans are given to any student who qualifies based on the requirements of the contract.”
Huburn had previously noted that the sub-committee is expected to create measures in which the loans will be repaid in a timely manner.
A list of the names of students who are yet to repay the loan had been previously publicized in this newspaper. The list had received objections from a number of persons who claimed that they had repaid or were repaying their loans.
However, officials attached to the department have said that the SLA received no objections from any of the names used in the sample of the audit.
Last week, a staffer attached to the Student Loan Agency said that since the list was published, a significant number of persons have come forward to clear their debt.
“There are at least 17 persons who came forward after the list was published and made payments to the agency. Some persons paid in full, while others have made arrangements to pay in parts.
“What has happened is that some persons have been paying the loans. It’s just that they haven’t cleared them as yet. Hence their names may appear on the list,” the SLA staffer explained.
In recently published notices, the Ministry of Finance sought to remind persons with outstanding balances at the SLA, of the payment options available to them.
According to the advisory, the outstanding amounts can be taken via deductions from the salary of places of employ of persons with the outstanding debts; standing orders via Citizen’s Bank, Scotiabank, Republic Bank or GBTI or by cash or Managers Cheque at the Student Loan Agency.
Additionally, persons are asked to contact the Student Loan Agency via the Ministry of Finance to discuss their payment plans.
The audit report had indicated that the previous Government – the People’s Progressive Party/Civic – had approved some $9,489,453,973 or US$45.5M through the National Budget, for student loans.
According to the report, during the period from April 2011 to December 2014, $1,800,000,000 (US$8,571,429) was received through a process whereby the Agency Head was informed by the Budget Department that funds have been approved to be released to the Agency.
Loans issued during the audit period (academic years 2011-2012 to 2014-2015) amounted to $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.
Of the total number of students who 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 totaling $679,918,794 including principal and interest.
“Five students had their loans written off, while 1,278 or five percent have been paying,” the report outlined.
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