Government extends student loan repayment grace period to 14 months

Graduates who take a student loan to fund their studies will now have a 14 months grace period to start repaying it.

This is an extension of the six months grace period that was allowed previously.

The announcement was made by Minister of Finance, Dr Nigel Clarke during his presentation of the budget yesterday.

He said the same interest that currently applies will be maintained with this new policy.

Minister of Finance, Dr Nigel Clarke

“All students who graduated in June last year, who would have ordinarily been required to begin repayment in January will now have until September 2020 to do so. This change will be applicable to all future borrowers. That is, Mr Speaker, students will now have 14 months from graduation to begin repaying their student loan at the low rates that exist of 4 per cent and 5 per cent,” he said.

He said he’s hoping that this new policy will reduce the amount of student loan delinquent borrowers.

“The previous policy made delinquents out of well-intentioned students who were finding themselves in the working world, making adjustments from student life. It was also problematic for those, who despite their best efforts took longer to find jobs,” he said.

Adding that a configuration of the Loans Management System is being done by the developers (eGov Ja Ltd) to facilitate modernization of this policy.