The Government of Guyana has opted to grant a further reprieve to indebted students of the University of Guyana (UG), by slashing accumulated arrears by as much as 75 per cent if the monies in full are repaid by the end of next month.
The announcement was made on Wednesday by the Finance Ministry, which indicated that the decision came about as a result of a Cabinet decision made on Tuesday last.
Student Loan Agency
According to the Finance Ministry, the extension of the waivers has been approved for those indebted, but currently with payment schedules for their student loans.
Persons who wish to bring their accounts up-to-date will be granted a 50 per cent reduction in the accumulated arrears of interest, “If their accounts are brought up-to-date by October 31, 2016.”
The Ministry has cautioned “if, however, a borrower defaults, subsequently, the interest waived will be restored in full to the account”. The Ministry said borrowers whose accounts were current for at least three years at July 31, 2016 will benefit from a 50 per cent reduction on all future interest once the account does not go into arrears, but cautioned too that in this instance “if the account lapses into arrears, all interest waived will be restored”.
According to a missive issued by the Ministry’s Public Relations Office, “borrowers whose accounts were current for at least two years at July 31, 2016, will receive a 50 per cent reduction on the interest accumulated prior to the repayment due date of the loan.”
This reduction, however, will be given in the form of a monthly credit against future payments, but, “if however, the account goes into arrears, all interest waived will be restored to the account”.
The move to provide a reprieve for UG students in arrears was first raised in the context of Guyana’s 50th Independence Anniversary when Natural Resources Minister Raphael Trotman had indicated before the Independence anniversary, “we are hoping that we can be generous in the Jubilee year… to students and waive interest and so forth…So, there are considerations for passing or excusing or not insisting on payments for some things, but I would prefer the Minister of Finance to make those announcements”.
The reduction was recommended by an audit of the UG Student Loan Agency among other interventions, “to streamline the agency and set clear conditions for loan applications guarantees and repayment”.
