THE CALL FOR delinquent beneficiaries of the Student Revolving Loan Fund to pay up has become somewhat of a broken record that no one is hearing.
So the latest plea from Minister of Education Ronald Jones for those with outstanding debts to pay up, is likely to be nothing more than talk. Few will pay him any serious attention. After all, pleas from previous ministers of education, in different administrations, have consistently mostly been ignored.
However, this is a serious situation, and one which can imperil a good vehicle which people can use to achieve their dreams of a quality education and, by extension, their aspiration for a better life. Accessing the revolving fund is a worthwhile investment, but it comes with one clear obligation: repayment is necessary.
Given the severity of the level of delinquency, what is needed is a set of clear proposals to resolve the problem. Measures must be put in place to ensure that delinquent borrowers face up to their legal responsibility, including continuing to place defaulters and their guarantors before the law courts, as well as naming and shaming them.
Admittedly, some defaulters may be facing undue hardship, but they must explain to the fund’s administrators their challenges, as is required with any other lending institution, allowing for loans to be restructured and, where necessary, financial counselling offered. But no one should expect to walk away from their obligations of repaying these loans.
Too many beneficiaries have failed to honour their commitments and in the process impede others from accessing the fund. The complaints about this type of behaviour have been echoed for too long and without meaningful success.
The way the loans are approved under the fund should be reviewed, with approval being tied to better security being offered. A robust loan recoveries programme must be instituted with outstanding debt pursued similar to what obtains at a commercial bank or a credit union.
This revolving fund is a critical plank in the development of Barbados’ human capital. This is why it should not be limited to students attending local or regional tertiary institutions, given the need to pursue the broadest possible study options. The country needs a corps of educated people to lead innovation, attract higher-paying jobs and improve productivity. It is through education that much of this will be achieved.
The Student Revolving Loan Fund is a generous financial scheme which can be accessed by people regardless of socio-economic backgrounds. It gives opportunities to many students and parents who deserve help. But, it is not a grant assistance fund, neither are the loans offered unconditionally.
The administrators of the fund must carry out their mandate, without fear or favour, by aggressively pursuing the outstanding funds. It is time for action and not just talk.