KINGSTON, Jamaica – The University of Technology (UTech) says that over $800 million in tuition-fee arrears has resulted in cash flow difficulties and affected its capacity to provide staff loans.

Defending its position regarding staff loans, the management UTech said Wednesday afternoon that the university has nonetheless disbursed over $90 million between April and November 2013, “satisfying almost all applicants in this regard”.

Wednesday morning members of staff demonstrated in front of the university’s gate claiming that the administration’s policy on staff loans was uncaring and high-handed. The demonstrators charged that a staff member died after she was denied a loan to get medical treatment.

But the university in response late Wednesday said that owing to cash flow challenges UTech could not fulfill all the loan requests and priority was given to applicants who needed to take care of health and medical issues, and school fees.

“The difficulties with the University’s cash flow resulted from outstanding tuition fees,” UTech contended in a statement.

“In acknowledging the challenging economic plight being faced by all, including our students, the University decided to lower the registration requirement to accommodate students who could pay at least 30 per cent of their tuition fees, with the understanding that the balance would be due November 19, 2013. Unfortunately, a significant number of students still have outstanding debt to the tune of over $800 million,” the UTech statement added.

“In this regard, until the cash flow situation is improved, the University will continue to give priority to staff loan applicants with special needs,” the UTech statement said.