The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

EDUCATION Loan Authority chairwoman Miriam Emmanuel says the Authority has seen a 29 percent decline in the number of delinquent accounts, which now stands at nearly 3,500 loans.

The decline was attributed in part to 37 people who paid off their student loans totaling $467,702.78, Mrs Emmanuel said yesterday.

Noting this marked decrease in Parliament, the MICAL MP said the ELA is “ready to move forward” with collection efforts on 3,294 files that have been prepared to date.

“The Authority headed by the board of directors has engaged the services of two collection agencies to assist with the collection of outstanding debt,” Mrs Emmanuel said during yesterday’s evening sitting of the House of Assembly.

“To ensure that this process was executed in the most efficient manner, the Authority has contracted individuals to work with this project. To date our team has prepared 3,294 files for this collection effort and we are ready to move forward.

“Mr Speaker, many of our loan holders were not able to make consistent payments because of the economic fallout from COVID-19. However, during the period of March 1, 2020 through December 31, 2020, the Authority was able to maintain 693 current files.

“At this time, I wish to thank those special persons who although they may have been affected by Hurricane Dorian and COVID-19 still saw the importance of honoring their commitment to the Bahamas government by remaining current. We also had 37 persons who paid off their student loans during the period of January 2020 to January 2021 totaling $467,702.78.”

Additionally, 33 people entered new payment agreements. The government further extended a three-month deferral to loan holders during the pandemic.

She said the Authority continues to be able to meet its financial commitments and there are plans to continue the programme once certain provisions are put in place.

“We are pleased that despite the COVID-19 pandemic we were able to make the interest payment of August 2020 and February 2021, which totaled $2.6m. Mr Speaker, the Authority’s collection for the period of January 2020 to January 2021 stands at $842,191.97.

“At the beginning of my chairmanship at the Authority in 2018 the total amount of outstanding loans stood at 4,426, which to date now totals 3,495 loans.

“This, Mr Speaker shows a 29 percent decrease in the outstanding debt.

“Before the COVID- 19 pandemic in accordance with the minister of education and the board of directors, great efforts are being made to restart the student loan programme.

“They also want to ensure the necessary control provisions are in place to sustain its viability.”

Last June, Mrs Emmanuel said the ELA’s outstanding balance decreased by nearly $2m between June 2019 and March 2020.

At the time, she said: “As of June 2019’s budget communication, the Authority’s outstanding balance stood at $131,731,964. As of March 2020, that balance has decreased to $129,933,372.”

The prior year, the ELA published names of delinquent loan holders who could not be reached. Mrs Emmanuel said as a result of that campaign to contact the loan holders, 68 new repayment agreements were signed.