The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

THE Education Loan Authority’s outstanding balance decreased by nearly $2 million between June 2019 and March 2020, ELA chairman Miriam Emmanuel said yesterday during her budget communication.

“As of June 2019’s budget communication, the Authority’s outstanding balance stood at $131,731,964. As of March 2020, that balance has decreased to $129,933,372,” she said.

In November, the ELA published names of delinquent loan holders who could not be reached. Ms Emmanuel said as a result of that campaign to contact the loan holders, 68 new repayment agreements were signed.

She said: “The loan programme was intended to be a revolving door so that as the borrowers pay the monies are re-lent to assist other qualified students. Unfortunately because of the high default rate the programme had to be suspended in August 2009. The Education Loan Authority Act 2002 was amended by the Education Loan Authority Act 2015 to basically give the authority more flexibility to pursue and collect default loans.

“There are hundreds of students that graduate every year and there are many who do not have the financial means to continue. The loan scheme has awarded more than 4000 loans and approximately $100m in funding. The loan scheme was dispersed to Bahamian students as follows: 3,938 loans worth $42.56 million were awarded in New Providence; 669 loans worth $7.41 million were awarded in Grand Bahama; 126 worth $1.39 million were awarded in the Family Islands.

“As of December, the Authority’s portion of the loan scheme portfolio stood at approximately $84,564,362 which represents 2,050 loans. As of the same date, the scholarship and education loan division portfolio stands at $47,328,486 or 954 loans which represent the accumulation of interest and principle.”

The ELA has a staff complement of eleven people, Ms Emmanuel said, including “the chairman, financial officer and nine persons in the loans support unit which include four compliance officers.”

“This unit oversees the authority’s default loans files,” she said. “Our compliance officers are assigned an equal amount of the 2,726 delinquent loans. Each officer has the responsibility to contact, negotiate and follow up with loan holders, exhausting every avenue to locate loan holders including utilising social media. The authority today has 210 current files.”

In February 2016, the Christie administration announced an incentive programme to address delinquency and to reward borrowers who wanted to honour their obligations. That programme, which ended in 2018, was restarted in March 2019, Ms Emmanuel said.

She said as of December 2019, 620 borrowers paid off their loans through the incentive programme, which allows them to settle their balance by repaying 40 percent on their total balance, including principal and interest.