Petrina Francis, Staff Reporter

Dr. Omar Davies, Minister of Finance and Planning, has announced that an additional $1.7 billion will be allocated to the Students' Loan Bureau (SLB) to facilitate the increasing demand for loans.

According to Dr. Davies, a significant number of students from the lower income group are accessing tertiary education and applying for loans.

"So we have to make more (money) available because it is the country's commitment that no student who has the capability should be deprived of tertiary education," he said on Friday at the Ministry of Finance, Heroes Circle head offices, Kingston.

The finance minister said the additional funds would come from the private sector and the proposal to allocate the money to the SLB, is currently before Parliament. he said an increase in the pool of funds to the SLB will be ongoing.

Rate revision urged

Dr. Christopher Tufton, an advocate for the reform of the SLB has welcomed Dr. Davies' announcement. However, he noted that a revision of the interest rates is urgently needed, saying that although there was a reduction from 16 to 12 per cent, more could be done to decrease it further.

Dr. Tufton, who is also the president for Generation 2000, a group of young professionals affiliated with the Jamaica Labour Party (JLP), told The Gleaner yesterday that the means test should also be addressed, as there is still a challenge for students who cannot find suitable guarantors.

Contacted yesterday, Lenice Barnett, executive director of the SLB, said she did not have any information on Dr. Davies' proposal which is currently before Parliament.

She noted, however, that the means test is reviewed annually and some students who were not likely to get loans last year, were able to access loans this year because the threshold was changed.

Mrs. Barnett said the interest rate for all students is now 12 per cent. She noted that students with old loans, who used to pay 16 per cent, would have seen the new interest rate reflected in their September 30 payments.