Jamaica Labour Party (JLP) to extend student loan repayment period

Published in the Jamaica Gleaner: Wednesday | August 1, 2007

In its manifesto, released on Monday, the JLP said it would issue government guaranteed education bonds to significantly increase the loan amounts available to tertiary level students through the SLB at reduced interest rates subsidised by annual budgetary provisions.

"We would extend the period to 15 years, excluding the three that you study as that would be a good amount of time," Andrew Holness, JLP spokesman on education told The Gleaner yesterday.

"Education is a lifetime investment. It will last as long as you live, so essentially you could treat it (SLB repayment)as a mortgage," the Opposition Spokesman said.

Currently students are given 10 years to repay their loans, including the number of years they study. This means if a student studies for three years, upon graduation, that student would have seven years in which to repay.

Mr. Holness further stated that the JLP would restructure the payment plan so that in the first five years, students would have the option of just repaying the interest on the loan, allowing them time to get settled in their jobs and make the repayment plan more affordable and less burdensome.

Currently students start repaying their loans about six months after leaving school at an interest rate of 12 per cent.