The People’s National Party (PNP) has committed to doing away with the requirement for two guarantors for tertiary level students seeking loans from the Students’ Loan Bureau (SLB) to pursue higher education.

Opposition Leader Mark Golding gave the commitment on Tuesday as he made his contribution to the 2021/2022 Budget Debate in the House of Representatives. He went one further than Finance and Public Service Minister Dr Nigel Clarke who, during his opening presentation in the Budget Debate on March 9, stated that the Government was reducing the number of guarantors needed for SLB loans from two to one.

“The next PNP government will reconfigure the loan structure used by the SLB so as to cap monthly payments at a reasonable percentage of their actual income, to ensure that it is manageable for young graduates.

“We will ensure that borrowing a student loan to invest in their education is something that students no longer fear,” said Golding

He continued: “The Minister of Finance announced last week that only one guarantor will be required by the SLB, going forward. That is a welcome step in the right direction, but it does not go far enough. When the Public Accounts Committee recently looked at the SLB, we found that the amounts recovered from guarantors are quite small in the scheme of things, which suggests that the retention of this requirement is not necessary for the sustainability of the institution. We know that many potential student loan applicants from low-income homes cannot find an acceptable guarantor. The requirement of finding a guarantor works against children from low-income households. The next PNP government will abolish altogether the requirement of finding a guarantor to access student loans”.

Golding argued that this will go some way in transforming the financing of tertiary education in Jamaica, in particular for young people whose parents just don’t have it.

“The State, and not the student, must bear the risk of employment creation,” he stated.