KINGSTON, Jamaica — Opposition Leader, Mark Golding, says the People’s National Party (PNP) will abolish the requirement for a guarantor for people seeking to access loans from the Students’ Loan Bureau (SLB), whenever the party next forms the government.

Golding made the promise Tuesday, during his contribution to the 2022/23 Budget Debate.

He argued that tertiary education should be more accessible, in particular for young people from low income families.

“The state, and not the student, must bear the risk of employment creation. Students should not have to fear borrowing to fund their education,” said Golding.

“We must make changes to the Students’ Loan Bureau so that it will make funding more accessible and attractive. The next PNP government will reconfigure the loan structure used by the SLB.  We will cap monthly payments at a reasonable percentage of their actual income,” he added.

He stressed that “we must ensure that student loan payments are manageable for young graduates”.

The Opposition leader acknowledged a statement last year from the Minister of Finance, Dr Nigel Clarke, that only one guarantor will be required by the SLB, going forward. Golding said this was a step in the right direction, but suggested that it does not go far enough.

The Member of Parliament for St Andrew South said many students from low income homes are unable to find an acceptable guarantor so that requirement excludes them. He also pointed out that when the Public Accounts Committee last looked at the SLB, it found that the amounts recovered from guarantors were “quite small in the scheme of things”.

“This tells us that the retention of the requirement is not necessary for the sustainability of the institution. The next PNP government will abolish altogether the requirement of finding a guarantor to access student loans. We will give students a chance to build their careers without the mental stress and financial pressure,” Golding said.

Pointing out that many students have been hit hard by the COVID-19 pandemic, Golding proposed a ‘Fresh Start’ programme where the SLB forgives $7.5 billion in student-accrued loan interest and penalties. He said this would cost the SLB nothing additional, as these amounts have already been provided for over the last five as an expense in the SLB’s annual income statement. The Opposition leader said a fresh start would remove the bad credit rating from these students, giving them a chance to build a better future as they step forward in their adult lives.

“This is a pragmatic and humane approach. Many students, anxious to get a university education, earn a degree and improve their prospects, borrowed student loans and agreed to loan repayments that have just been beyond their capacity to pay, even with the best will in the world. Many have now just given up and accepted their lot,” he noted.