The National Student Loans Company, which took over from the Student Loan Committee of 2002, has a loan portfolio of $32 million and 744 active accounts.
Currently, 187 students are benefiting from the program, and have accessed $5.4 million in loans.
Minister of Finance Camilo Gonsalves announced on Monday that the government had committed to furthering the Economically Disadvantaged Student Loan Program, which includes a reduction in interest rates to 4.5%.
While La Soufriere’s eruption and post-COVID-19 interest rate spikes delayed the pledge, consultation with the National Student Loans Company has resulted in the fulfillment of the promise.
Gonsalves stated that the interest rate reduction will be a relief to those who are currently benefiting from the program, as well as those who have been paying their loans diligently.
However, the government also recognizes the high rate of delinquencies within the program, and more needs to be done to address the issue.
According to recent analysis, many of the delinquent borrowers are employed individuals, including some within the civil service, who have chosen not to repay their loans.
