Student’s Loan Bureau reports big surplus
Despite what it describes as “intolerable levels of delinquency”, the Student’s Loan Bureau (SLB) made a surplus of just under half-a-billion dollars in 2001/2002.
The surplus of $455.31 million compared to a surplus of $388 million made in 2000/2001, which resulted in an accumulated surplus of $1.3 billion at March 31, 2002.
The revolving loan scheme had surplus of $94.3 million, an increase of $14.3 million over the $80 million recorded in financial year 200/2001. Government subvention of $82 million allocated to recurrent expenditure was the major source of income accounting for 51.3 per cent of the total $160-million revenue. This represented an increase of $51.5 million (168.8 per cent) over the $30.50-million recorded in the previous year.
Total expenses were $65.6 million, of which $23.5 million or 36 per cent represented provisions for loan losses on advances. The sum covered all outstanding balances under the scheme, as it was doubtful those amounts would be collected.
The information was contained in the financial report and audited financial statements for the year ended March 31, 2002 tabled in the House of Representatives by minister of finance and planning, Omar Davies, last week.
The report said that during the financial year 2001/2002 the SLB approved loans and grants valuing approximately $466.8 million for 4,818 applicants. A total of 5,548 applications were evaluated.
Students attending the University of the West Indies, University of Technology and Northern Caribbean University were the largest beneficiaries of loans, accounting for 81 per cent. Students at teachers’ colleges followed with 13 per cent; and the remaining six per cent was shared among students attending community colleges, private and other institutions.
However, the SLB said that it continued to experience intolerable levels of delinquency in loan repayments and, as a result, tough measures had to be employed to encourage repayment and reduce delinquency. The SLB’s auditor’s report showed that the Bureau’s five senior executives earned $15.75 million and accounted for 32 per cent of staff costs.
