THE EDITOR, Sir:
THE NATIONAL Housing Trust (NHT) recently reduced its interest rate, thus making home loans more affordable and less burdensome for NHT borrowers. This reduction in interest rate will not only benefit new applicants, but will also be applied to existing borrowers.
I would like to suggest that, the Students Loan Bureau (SLB) adopt a similar policy. Over the last few months a significant number of persons have been expressing their grave concerns about the ridiculously high interest rate being charged by the SLB.
EXCESSIVE AND EXORBITANT
One writer said that he will be required to pay as much as $30,000 per month. While this amount may seem excessive and exorbitant, this is not an isolated case. Many of my colleagues are at present paying as much as 25 per cent to 35 per cent of their income to the SLB for seven years.
One really has to wonder though, why the interest rate charged by the SLB has to be so high when the SLB receives most of its funding from the World Bank at low concessionary interest rates. In addition, this bureau which was formed with a social objective is now operating with one of the largest profit margins of all times. The borrowers are in no way benefiting from the concession the SLB receives from the World Bank.
This is very unfortunate and I am imploring the Minister of Finance, or even the Prime Minister, for that matter, to look into this matter urgently. The borrowers are crying foul!
I am, etc.,
KEMMEHI LOZER (Mr)
35 Garfield Avenue
Kingston
