THE EDITOR, Sir:WE REFER to the writer Jerome Henry, whose letter in the Financial Gleaner of May 19, sought to discourage borrowers from accessing the new loan products of the Students' Loan Bureau (SLB), SLB ParentPlus and SLB PostGrad.
We wish to point out to Mr. Henry that considerable research was done, and at present, no other financial institution offers rates for unsecured facilities as low as those currently provided by the SLB, for these products which are designed to supplement the funds of students for their higher education. There is no collateral required for these loans, an important distinction in comparing these options.
We have a commitment to the public of Jamaica to ensure that the viability of the student loan scheme is maintained for succeeding generations of Jamaican students. Fiscal prudence demands that we maintain a rate that makes economic sense. We reiterate that 13.5 per cent (add-on) is the most affordable rate now on the market, which is subject to annual review and is adjusted according to market conditions.
In addition, there should be no confusion between ParentPlus and PostGrad loans with SLB Targeted loans, which are the traditional products of the SLB, targeting the needy. SLB Targeted loans are offered at a rate of 12 per cent (add-on) with a moratorium on repayments during their studies.
We are of the view that the SLB is acting responsibly in seeking to assist all sections of the tertiary population; this is certainly in furtherance of its mandate.
The suggestion that the Students' Loan Bureau, a critical, not-for-profit public agency providing loans for over 7,000 students a year, would be engaged in any plan to "sell the country's future to the highest bidder" can be refuted by even a cursory examination of its performance to date.
I am, etc.,
LENICE BARNETT
Executive Director,
Students' Loan Bureau
