Paula Gordon, Star Writer

The new amnesty being offered by the Student's Loan Bureau (SLB) does not seem to be catching on with borrowers, as some are not aware that it exists and others believe it is senseless and unrealistic.

THE WEEKEND STAR understands the amnesty that began on March 1, and will run until May 31, is geared towards benefiting borrowers with matured loans; borrowers with loans in arrears that have not matured, but desire to close the loans; and those with loans in arrears that have not matured, but desire to make their accounts current.

When THE WEEKEND STAR contacted Analisa Downes, public relations officer at the SLB, she said there are benefits to be gained from the amnesty.

She said, there is a 100 per cent waiver of all late fees that would have accrued on the loans. There is also a waiver of a percentage of the insurance and interest amount on the loan.

She, however, noted this aspect of the benefit is subject to conditions adding, "not everybody will get the same percentage waiver, that is determined on a case-by-case basis."

boost credit rating

Another benefit, she said, is the amnesty would allow beneficiaries to boost their credit rating. She noted, "A credt-rating bureau is coming on stream so most people want the opportunity to have their rating on stream."

Downes said since the beginning of the amnesty, "we have seen a considerable number of persons come in to bring their loans current and a few came to close."

UWI graduate Nickesha said although she is aware of the amnesty, she has not been able to apply for it.

She said: "I spoke to my loans officer but they are only taking off the late payments, and I have to find the rest, which I can't. The late fee might only amount to $7,500, I don't see the sense in it, really, 'cause I can't pay the full amount after the late fee comes out. I am in arrears of over $200,000, so how am I gonna pay it all?"

She further added: "It's not even like they spread out the payments over months."

In addressing the complaints, Downs said: "Persons unable to take up the amnesty shouldn't just assume they can't benefit from it, they should just call their officers to see what can be done for them, we are not hard and fast."

Meisha, another borrower, told THE WEEKEND STAR she totally disagreed with Downes. She claimed she has made several visits to the bureau in order to work out a suitable payment plan. However, no solution has been reached because the SLB is allegedly unwilling to accept what she said she can afford to pay.

She recalled that after leaving university in 2006, it was very difficult finding a job, hence arrears had started to accumulate on the loan.

"When I got a job and they knew, they sent a blank salary-deduction form, that they said I signed during the application process to my employer, for a deduction of more than half my salary," she remarked.

salary deduction

She added: "Is when I went to the ATM machine to draw some money payday, I saw that I only had $20,000 in my account. When I went back to my office and asked, they showed me a salary deduction form, sent by student loan, which ordered them to make the deduction."

She said when she contacted SLB, she was told they had the right to order the deduction as she, along with every borrower, signed three blank salary-deduction forms during the application process.

"After all that, I went in to get them to lower the amount being deducted because $20,000 could only cover my rent, they didn't even budge, I had to leave my job because I found myself borrowing a bus fare everyday, it was embarrassing," she recalled.

The borrowers said they don't feel like much is being done to address their issues. Nickesha said, "I don't understand why I'm paying back triple time what I borrowed. I can't bother, I feel like I can't live."

Meanwhile, the borrowers believe if Government is unable to lower interest rates and monthly payments, they should be allowed to pay lower taxes once they start earning. Added to that, they believe the bureau needs to recognise jobs are hard to find, so the system in place, where borrowers are required to start repaying six months after graduation, needs to be modified.