In 2009, the Students’ Loan Bureau of Jamaica (SLB) reported just over $700 million in outstanding loans. Horrifically, that figure has continued to rise since an increasing number of our tertiary graduates remain unemployed and are therefore unable to offset outstanding loans.

While many will argue that the unavailability of jobs in the country is the main reason for their delinquency, they have also failed to realise that most students are indeed not fully conscious of the terms and conditions under which they are granted these loans.

Consequently, upon discovering the real details, many students then accuse the Bureau of theft and become reluctant to repay their loans.

However, in an attempt to avoid a recurrence of such cases, TEENage advises that you first note the repayment period for each loan upon application.

Our research has shown that upon acquiring the loan, you are allotted 10 years for repayment, which is also inclusive of the time it takes to complete the programme. A student doing a degree at the University of the West Indies would therefore have seven years to repay the loan after completing their course in the prescribed three years. The repayment period begins exactly six months to the date on which your course is completed and not whenever you begin to work.

The loan will attract a 12 per cent add-on interest over the period of the course — note this is at a variable rate and can be reviewed at anytime. One must also note that each loan attracts insurance, which is calculated at a rate of $1.50 times every thousand dollar borrowed, times the number of months remaining for the course to be completed. This also takes into consideration the six months ‘grace period’ or moratorium. This ‘grace period’ is the time allotted for the borrower to find a job or source of income and begin reimbursing the SLB.

Students are required to pay two types of insurance — moratorium that is charged at the beginning of each academic year and repayment insurance, which should be paid at the beginning of the repayment period. All these fees, if not prepaid, are then combined with your principal amount along with the interest that as accumulate and give birth to the grand total that has many students running scared.

Students who drop out of school are required to start repaying their loans immediately, while those who repeat the academic year will not be entitled to any funds to offset the repeated cost.

As tertiary students enter their final semester for the current school year, the Students’ Loan Bureau again opens its door to applicants for the academic year 2010-2011. TEENage, in a bid to increase awareness of the delicacies pertaining to the SLB, would like to encourage students to be weary of the financial situation and view other alternatives.

While we may all feel that the SLB administration needs reconstruction, it is obvious that this will not happen in the near future. Therefore, to avoid falling prey to what is arguably a sloppy system, educate yourself about the terms and conditions you sign by further questioning and researching.

Finally, if you do borrow, repay your loan and give others an equal opportunity to realise their academic dream.