Reference is made to The Gleaner article of June 24, 2024, written by Barbara Gayle entitled “Debt Threat After Death”.

The Students’ Loan Bureau sincerely empathizes with Miss Brivit (Guarantor) given the distress and grief caused by the issuance of this demand letter. We have promptly initiated contact with her to resolve the matter. Our commitment remains steadfast in ensuring that all our customers receive the necessary support and assistance during challenging circumstances such as these. Furthermore, it is important to clarify that SLB does not attach collateral to their loans. Our lending practices are designed to prioritize fair and transparent interactions with our clients. It is crucial to note that only a court can issue an order regarding the enforcement of a judgment to settle a debt, underscoring our adherence to legal procedures and protection of our customers’ rights. We continue to work diligently to uphold our principles of integrity and customer-centric service, aiming to foster trust and positive relationships within our community.

The mandate of the Students’ Loan Bureau which is encapsulated in its mission is to “provide affordable financing to students pursuing tertiary education, thereby contributing to national development”. As with any other Financial Institution, the SLB provides insurance to mitigate the risks associated with the death or disability of its borrowers. Insurance premiums are calculated and charged in two distinct periods – moratorium (period while the student is in school) and repayment (post-scheduled course completion). Each new loan is insured while in moratorium with premiums being charged up front. Insurance during the repayment period, however, is charged and payable as part of the monthly repayment installments. Meaning the monthly installment includes principal, interest and insurance.

The requirements to substantiate a claim under the Insurance Fund are as follows:

1. That the account is current – i.e. has no arrears;
2. The insurance coverage is up to date;
(a) For Permanent Disability Claims, a medical report from a Medical Practitioner or Medical Facility;
(b) For Death Claims, a Death Certificate.

Given the abovementioned, as per the agreed schedule, it is critical that SLB Borrowers pay their monthly installments as per schedule to mitigate the risks to their Guarantors (where applicable), and to themselves of having to repay the debt in the event of any of the aforementioned circumstances. It is to be noted that where all requirements are met, the debts are settled within approximately five working days.

In the case of Ms Brivit (Guarantor), unfortunately, the Insurance Policy had lapsed as the account was delinquent for a significant period prior to the death of the Borrower. That is, the regular monthly payments were not made and therefore the insurance has not been paid for the loan. It is also to be noted that the loan amount was significantly understated in the article as there were several loans disbursed to the borrower.

Our records indicate that the death certificate was submitted in 2018, and despite the state of the policy, in order to assist the Guarantors and the family of the deceased, discretion was exercised to allow the settlement of the loan balance from the Insurance Fund, provided the arrears were settled. The arrears remain outstanding to date with only one payment being made.

We note that the Guarantor believed that “since the borrower died she would no longer have responsibility for the loan”. However, legally she remains obligated to repay the loan given that the requirements for settlement from the Insurance Fund were not met.

Whilst we note the legal positions posited in the article, it is critical to clarify that loans issued by the Students’ Loan Bureau are pursuant to statute, and our position is that the law provides that such loans are not simple contracts subject to the regular six years limitation period but extend to twenty years.

Having not availed themselves of the aforementioned discretionary exception presented, the loan remained in a delinquent state and had to be referred for recovery action. The correspondence from the law firm Richards & Richards, states that upon a judgement from the court, several outcomes may arise.

The SLB has been actively enhancing access and lowering interest rates for our students, while also extending our loan tenure to 15-20 years to alleviate the repayment burden. Currently, we offer highly competitive terms for student loans, with interest rates as low as 6% and repayment starting 14 months after graduation.

Recognising the challenges students face in securing guarantors and considering their legal obligations, effective April 1, 2024, the SLB will no longer require guarantors as part of the application process.

We encourage our customers to make immediate contact when they have difficulties making repayments as we offer other solutions regarding repayments and product offerings.

We would like to encourage our customers who have potential Insurance Claims (both death and disability), or other concerns to contact us directly, or via our agents or Attorneys so that we may provide the requisite assistance.

Insurance claim matters may be sent by email to att@slbja.com and you may visit the Legal Department during working hours without an appointment for an assessment. For other matters, you may contact info@slbja.com.