KINGSTON, Jamaica – The Government says it will move to introduce laws that will allow employers to deduct money owed to the Students’ Loan Bureau (SLB) from the salaries of delinquent borrowers.

That’s one proposal to reduce the high level of delinquency at the SLB, Finance Minister, Dr Peter Phillips told Parliament at Thursday’s opening of the 2013/14 Budget Debate.

“Employers will be authorised to deduct payments from employees who have outstanding loans with the SLB and remit these to the Bureau,” Dr Phillips said.

The rate of SLB collections is just under 50 per cent, Phillips said, adding that it’s “inadequate to enable the fund to revolve in the way that was originally intended so that more persons can benefit.”

Applications for students’ loans have increased from 6,600 in 2007 to 16,600 in 2012, Phillips said, which has caused increased pressure on the SLB.

For the coming academic year, approximately $4.9 billion is required to cover the projected demand, which will be financed by the Education tax and loans from the Caribbean Development Bank.

The Budget Debate continues April 23 when the Opposition spokesman in Finance, Audley Shaw, makes his contribution.