Forgive education debt, says Lashley

A former minister of government is urging Government to wipe the slate of the most vulnerable who are currently indebted to the state-run, Student Revolving Loan Fund (SRLF).

In fact, Hamilton Lashley believes that a review committee should be established by the Ministry of Education to carry out means tests in order to re-evaluate and reassess those present and/or former students most in need of the goodwill.

In a recent interview with Barbados TODAY, Loans Manager Suzanne Griffith disclosed that due to the ongoing COVID-19 pandemic, the SRLF had embarked on a programme that would provide some ease to students who are struggling to repay their loans.

Though a noble gesture, Lashley, an ex-Minister of Social Transformation in a previous Barbados Labour Party (BLP) government, however contended that student loan forgiveness should be taken further. He suggested that these debtors ought to receive the similar treatment meted out to a number of businesses in 2019 when the Mia Mottley Government moved to write-off outstanding Value Added Tax (VAT) debts and waived their penalties and arrears.

“There are some people who of course can naturally repay because of their financial circumstances but for some reason or the other have not repaid. A means test should therefore be carried out. I am totally in agreement that in these harsh and difficult economic times that some consideration must be given to those who at this time, are having difficulty in surviving and meeting their payments because of these kinds of extenuating circumstances,” he said.

Lashley urged the SRLF to show some kindness, given the fact that most of the people who would have sought student loans would have done so under the belief that continuing their education was the only way that they could improve their lot.

He continued: “. . . . those that are in the lower socioeconomic bracket at that time, it seemed it was a good thing to do, because without an education the youths got stress. They felt it was a good investment but of course with this kind of global pandemic prevailing, then some consideration should be given to those persons and not to persecute and then prosecute them, but to work with them.

“If Student Revolving could have enough money that they could give to [a charity], I’m sure they could actually forgive people who used their initiative and saw education as a way to do better for themselves and their families.”

In the Fund’s most recent financial report the acting Administrative Manager Ambrose Johnson addressed the goal to reduce delinquent loans to less than 10 per cent by March 2022. At March 31, 2020 it stood at 17 per cent, an improvement from 27 per cent in recent years. Johnson also noted that in addition to local efforts, the SRLF had engaged international collection agencies to pursue borrowers living overseas. The cost of these efforts were not available. (KC)