Posted By: Ken On: 8/10/2010

Title: depends on the objective

If the objective was to facilitate the development of Bahamians for the betterment of our people and the country it would be inconceivable that you apply the same conditions and terms as a car, furniture loan or home mortgage. However if it is your objective to puish those who dare to attempt to better themselves then those conditions would be most appropos.

Posted By: Empathetic On: 8/9/2010

Title: @Anonymous

I absolutely understand your frustration here, and I think it is admirable that you have stepped up to the plate and are willing to pay back on your loans. It is unfair the amount that you are ending up paying back, however, and this only highlights the degree to which banks in general are allowed to rip us off. Any institution that gives you a savings rate of 2% or less on your money and then turns around and charges you a rate of 9% or higher on loans is suspect and should be subject to tighter regulations while being forced to be fair to its csutomers. That's why so many of us just can't get ahead. You try to do the right thing and pay back your loans, but with the high interest rate, and the fact that the loans themselves are FRONTLOADED with the interest, you can't do much but scream in frustration. Minister of Finance...where are you?????

Posted By: Anonymous On: 8/9/2010

Title: Frustrated

As a recent graduate and employed receipient of the student loan scholarship, I am inclined to disagree with Education Minister Desmond Bannister. I do not feel that the his statement "We understand that things are tough and we are willing to work with them,” is correct. I received a 4 year scholarship valued $10,000 per an school year, i.e. $40,000 total. I approached the Bank of the Bahamas to set up an agreement to pay my loan back. The loan officer informed me that I would have to pay back approximately $500 per month for 12 years. I am frustrated to know that in one year since my graduation my loan amount owed has increased to $48,000 and that by the time I am "done" paying back the Bank. My total payback would be upwards of $80,000. IN ADDITION, to the $10,000 in interest my family paid over 4 years. I understand the concept of principal, interest, repayment, etc...But what I do not understand is how is this fair. I appreciate the opportunity the loan scholarship afforded me, as I would not have been able to complete my education abroad without it. However, is it fair to pay back $90,000 for less than $40,000 loan, as we never received the $10,000 a year because of bank charges etc. I signed the agreement to accept the terms of my loan and I fully intend to pay it back, however how many 18 year old's understand the implication of the agreed upon interest rate and terms. Do they really understand that in 4 years they will be paying more than double what they received. I think the Government should have negotiated a better interest rate for students. The bank officer told me that if a payment was missed or the full amount was not paid, I would incur additional charges and late fees.Even with a university education, $500 a month is alot for some, especially when you have so many other expenses to contend with. The bank officer told me no other agreement could be made, it was $500 a month or nothing. I think I could very well understand why person's are not paying back their loan.