The Students’ Loan Bureau (SLB) is projecting disbursements of $4.24 billion for fiscal years 2023/24.
This is $312 million more than the programmed sum for 2022/23, according to the Jamaica Public Bodies Estimates of Revenue and Expenditure for the year ending March 2024.
The document indicates that while an overall $6.13 billion was budgeted for disbursement last year, the sum included arrears of $2.2 billion for payment to institutions by the end of the period, on March 31, 2023.
On behalf of qualified applicants, the SLB distributes funds to approved institutions to finance their undergraduate or graduate studies.
The SLB has indicated that it will continue to provide funding to students attending 34 approved tertiary institutions through three loan products during 2023/24.
These, according to the Public Bodies Estimates, are targeted loans, pay-as-you-study (PAYS) loans, and postgraduate (PG) loans.
Targeted loans comprise approximately 99 percent of the loan portfolio, with applicants benefiting from extended moratorium periods (in school years) before repayment.
The PAYS and PG products do not have the moratorium feature and are earmarked for growing the portfolio.
Meanwhile, the SLB plans to employ several initiatives to strengthen customer engagement strategies.
The public bodies estimates indicate that these include loan management system implementation, loan restructuring to facilitate lower monthly payments, and product offering expansion, to include certification and online programmes.
Additionally, the income contingent approach will be continued to facilitate more affordable monthly payments, with increased use of debt collectors/bailiffs and litigation to curtail delinquency.
These measures are expected to result in a 3% decrease in the delinquency rate.
The SLB also plans to increase its public education and marketing strategies to improve customer satisfaction and brand and product awareness.
The entity is forecasting a 2023/24 net operational surplus of $1.74 billion and projects that its staff complement will increase by two to 117.
The Students’ Loan Bureau was incorporated as a statutory body in 1971 under the Students’ Loan Fund Act (SLFA).
Its stipulated functions under the legislation include making loan or grant provisions, in absolute discretion, to approved students and administering the Students’ Loan Revolving Fund (SLRF), which was established under the Act.
The funding supports various programmes of study, including business administration, social sciences, sciences, nursing, pharmacology, education, humanities, agriculture, engineering, information technology, hospitality and tourism management, law, maritime, medicine, sports education, and theology.
The Bureau provides funding to students attending approved tertiary institutions, inclusive of universities, teachers’ colleges, and community colleges.