Financing tertiary education!

You have collected your high school certificate as you wore your cap and gown. You were so proud that you had passed all your subjects.

So what’s next on the plan for your life?

For a number of young ambitious Jamaicans, the next step is to matriculate to a tertiary level facility that will enable them to be fully qualified in their profession.

Cost of tertiary education

In my previous post, I had focused on the rising cost of secondary education but the heftiest price tag by far is to study at the tertiary level.

Of course, the cost depends on your area of study as some courses cost more than others.  There are also short programmes that last for a few weeks which will attract a smaller tuition fee.

The majority of degree programmes at accredited universities are between $200,000 – $350,000 per year.  This figure does not include exam fees or lab fees or any other books or materials needed for the course.

Paying the bills

One way in which students try to fill the gaps between their fees and what they can afford to pay is by taking out loans.

The Student Loan Bureau (SLB) offers loans to students and has been an option that many have used to finance their education.

The 2015/16 application period began on February 16 and will end on May 29, 2015. The Student Loan Bureau offers students a 9% interest rate and they get a moratorium after they complete their course of study before they have to repay the loan.

Students approved for loans will get up to 100 percent of the cost of their tuition fees. For persons studying programmes which fall in the non sponsored category, the SLB funds up to the amount of the sponsored programme.

Concerns

Recently, there has been a hike in fines for those students who take SLB loans and fail to pay on time. The SLB has advised that a new penalty of $750 will be applied to accounts which make a payment after the due date.

According to The Gleaner article published May 31, 2015, the increased fine will apply where persons pay less than the stipulated amount. The new fine will also apply to loans in arrears. The SLB says the $750 penalty will be applied monthly until the arrears are cleared.

Those delinquent borrowers who are no where to be found after they have completed their studies also prove an annoyance to their gurantors since they co-sign on the loan and are responsible for repaying the loans if the student defaults on the loan.

The situation then is clear, it is best to have a long term plan for studying at the tertiary level. The Students Loan Bureau might not be the perfect fit for everyone but it is a viable option that can be explored.

What’s your take? Drop me a line!

Teri Ann Renee Paisley

Gleaner online writer

Tags: student loans