Finance and the Public Service Minister Dr Nigel Clarke has announced interest rate cuts for borrowers of the Students’ Loan Bureau (SLB) who are in good standing.

In his maiden contribution to the Budget Debate in Gordon House today, Clarke told his colleague lawmakers that, in keeping with the objective of expanding economic opportunity for all, the SLB will implement the following reforms.

1. Effective immediately, eligible borrowers in good standing with the SLB will be entitled to a reduction in their interest rates of two percentage points:
(a) Post-graduate loans – From 9.5 per cent to 7.5 per cent
(b) Pay-as-you-go loan – From 6 per cent to 4 per cent

2. For new loans, application of payments will be made to the most outstanding balance first: 
Historically, payments made to the SLB by borrowers are applied first to penalties, then to interest and finally to principal.

3. Ten per cent loan balance cut for borrowers employed to charities:
All borrowers employed full time to registered charities, which are in good standing, will have 10 per cent of their loan balance forgiven for each full year that they are employed full time to a registered charity effective April 1, 2019.

4. For the new fiscal year, the Government will provide grant support of $3.0 billion to the SLB:
In the past three years, the value of loans disbursed by the SLB has increased by more than 22 per cent.

In the 2017/2018 year, 99 per cent of applicants to the SLB were successful.

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