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140m still owed in student loans

Fri, Jun 11th 2021, 03:52 PM
Education Finance Tribune Stories

MORE than $140m is still owed to the Education Loan Authority for its student loan programme, according to chairwoman Miriam Emmanuel.

Giving her contribution to the 2021/22 budget debate in the House of Assembly yesterday, Mrs Emmanuel noted that when she first joined the agency in 2018, she found that more than $150m was owed in loan payments by students.
#However, since then, she said the agency has made considerable strides to decrease that amount, with the current outstanding loan balance now standing at some $142m.
#The MICAL MP told Parliament: “At the beginning of my tenure in January 2018, the entire loan scheme stood at 4,426 loans which include two portfolios managed by the BOB, the combined value at the time being $152,092,274. During the June 2020 budget communication, the authority’s outstanding balance stood at $129,933,372 which accounted only for the two portfolios under the authority management at that time.
#“The complete turnover by the Bank of the Bahamas was finalised in December 2020 with the closing of all individual saving accounts. As of January 2021, the authority now manages four loan portfolios with 3,496 loans valuing $142,330,422.
#“Mr Deputy, for the period of January 2021 to March 2021, the authority has 132 persons that have upgraded to current status. This leaves our delinquent files to 3,364.”
#She also said the ELA continues to make progress in its debt recovery initiatives, pointing to the government’s student loan repayment incentive programme.
#“The incentive programme implemented in 2016 remains active and has proven beneficial to loan holders. To date, 657 persons have taken advantage of this programme,” Mrs Emmanuel continued.
#“The incentive programme has a total collection of $3,684,990 since its launch in 2016. Mr Deputy, this valued programme gives loan holders reasonable options for repayment including a 60 percent discount on the total balance all interest fees waived etc receiving a 60 percent discount on the principal balance once a one-time payoff is feasible.”
#She added: “Mr Deputy, during my mid-term budget communication, I mentioned that we were working towards obtaining the service of two collection agencies to assist in our debt recovery efforts. Today, I am elated to report that although the work was tedious, the contracts were signed in April of this year and the agency presently has the charge of the combined collection of 2,677 loans.

Giving her contribution to the 2021/22 budget debate in the House of Assembly yesterday, Mrs Emmanuel noted that when she first joined the agency in 2018, she found that more than $150m was owed in loan payments by students.

However, since then, she said the agency has made considerable strides to decrease that amount, with the current outstanding loan balance now standing at some $142m.

The MICAL MP told Parliament: “At the beginning of my tenure in January 2018, the entire loan scheme stood at 4,426 loans which include two portfolios managed by the BOB, the combined value at the time being $152,092,274. During the June 2020 budget communication, the authority’s outstanding balance stood at $129,933,372 which accounted only for the two portfolios under the authority management at that time.

“The complete turnover by the Bank of the Bahamas was finalised in December 2020 with the closing of all individual saving accounts. As of January 2021, the authority now manages four loan portfolios with 3,496 loans valuing $142,330,422.

“Mr Deputy, for the period of January 2021 to March 2021, the authority has 132 persons that have upgraded to current status. This leaves our delinquent files to 3,364.”

She also said the ELA continues to make progress in its debt recovery initiatives, pointing to the government’s student loan repayment incentive programme.

“The incentive programme implemented in 2016 remains active and has proven beneficial to loan holders. To date, 657 persons have taken advantage of this programme,” Mrs Emmanuel continued.

“The incentive programme has a total collection of $3,684,990 since its launch in 2016. Mr Deputy, this valued programme gives loan holders reasonable options for repayment including a 60 percent discount on the total balance all interest fees waived etc receiving a 60 percent discount on the principal balance once a one-time payoff is feasible.”

She added: “Mr Deputy, during my mid-term budget communication, I mentioned that we were working towards obtaining the service of two collection agencies to assist in our debt recovery efforts. Today, I am elated to report that although the work was tedious, the contracts were signed in April of this year and the agency presently has the charge of the combined collection of 2,677 loans.

 

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