Petrina Francis, Staff Reporter
SOME BORROWERS of the Students' Loan Bureau (SLB) have welcomed the Government's decision to reduce the interest rate on old loans from 16 to 12 per cent but believe that the rate should be further reduced.
"That is good news; I am particularly glad that it has been extended to include old loans," said George Graham*, who has been a delinquent because of the high interest rate.
"It goes a far way with persons wanting to comply and I am looking forward to another reduction next year," he added.
Last year Dr. Omar Davies, Minister of Finance and Planning, announced that the rate of interest charged on new loans will be reduced from 16 per cent to 12 per cent.
OLD LOANS
In opening the Budget Debate last week, Dr. Davies announced that the same rate would apply to old loans.
"It's a welcome announcement because as a borrower I find it extremely hard each month to give so much money out of my salary," said Susan Barnes, a teacher.
Ms. Barnes, however, believes that the interest rate is still too high and should be reduced to single digit.
Kevin Miller, Cheque File Clerk at the Bank of Nova Scotia, echoed similar sentiments.
He told The Gleaner that, while the move is a good one, the Government should consider reducing the interest rate if it intends to have a highly skilled labour force. He noted that a lower interest rate would encourage more persons to access the loan.
*name changed to protect identity
