Monica Brown, executive director of the SLB
More problems are looming for Jamaica's cash-strapped Students' Loan Bureau (SLB) with news emerging that its bad debt portfolio continues to soar.
The Bureau revealed at Wednesday’s sitting of Parliament's Public Administration and Appropriations Committee (PAAC) that it will have financial challenges covering applications for loans for the 2013/2014 academic year. Information emerged that the SLB is also struggling to keep up with a massive amount that borrowers have not repaid.
Speaking on RJR's ‘Beyond The Headlines’, Monica Brown, executive director of the SLB, on Wednesday disclosed that loans in arrears amount to more than J$1 billion.
This category comprises borrowers who have fallen behind in payments by more than two months.
Ms. Brown added that the figure for delinquent borrowers - those who have not paid for an extended period, is two times the figure for those in arrears.
Dr. Dayton Campbell, member of the PAAC, is asking for urgent consideration to be given to a motion he tabled in Parliament to address the issue of tertiary funding.
The motion, tabled late last year, calls for Parliament to debate ways to fund tertiary education. It called for the Human Resource and Social Development Committee to be mandated to examine the adequacy and affordability of funding tertiary education in Jamaica and report its findings to Parliament.
Dr. Campbell acknowledges that previous motions were before Parliament, but wants urgency to be placed on this one because of the upcoming application period and the upcoming tabling of the 2013/2014 Budget.
The youth arm of the People's National Party (PNP) is calling for the Government to meet with all tertiary institutions with a view to capping their operational costs at current levels, so as not to increase tuition fees. It also wants a review of the Education Tax regime.
Alric Campbell, president of the PNP Youth Organization (PNPYO) spoke with RJR News.
“…By that I mean that the education tax should be reviewed. I believe the NHT model has served us well; and the Education Tax should be reviewed with a view to have it be implemented in that regard; and to use it, more importantly, to fund education and education alone at all levels - from early childhood to tertiary level.”
The organization is also suggesting that student loans be awarded based on disciplines that are aligned to the development goals of the country.
It is also urging parents and guardians to begin saving early for tertiary education so as to lessen the need to rely on Government resources.
The PNPYO wants recipients of students' loans to be bonded for a number of years in order to avoid delinquency due to migration.
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