Cabinet on Tuesday approved the extension of the Student Loan waivers announced in August and added two new offers that seek to reward borrowers who have been honouring their repayment obligation to the Student Loan Agency.
The Ministry of Finance, in a statement this evening, announced the following:
- Persons with student loans will be granted a 75 percent reduction in the accumulated arrears of interest on their accounts if they clear their indebtedness in full no later than October 31, 2016.
- Persons who wish to bring their accounts up-to-date will be granted a 50 percent reduction in the accumulated arrears of interest, if their accounts are brought up-to-date by October 31, 2016. If, however, a borrower defaults, subsequently, the interest waived will be restored in full to the account.
- Borrowers whose accounts were current for at least three years at July 31, 2016 will benefit from a 50% reduction on all future interest once the account does not go into arrears. If the account lapses into arrears, all interest waived will be restored.
- Borrowers whose accounts were current for at least two years at July 31, 2016, will receive a 50% reduction on the interest accumulated prior to the repayment due date of the loan. This reduction will be given in the form of a monthly credit against future payments. If however, the account goes into arrears, all interest waived will be restored to the account.
The Ministry of Finance is urging all borrowers to visit the Student Loan Agency without delay to discuss repayment plans and how they can benefit from these offers.