THE $450M cut from the 2014 National Budget, which was earmarked for loans to the University of Guyana (UG) students loans and the urgency to have the monies restored will be given attention.
Given that the new academic year is scheduled to commence in August underscored another problem, the dismal repayment rates, Finance Minister Dr. Ashni Singh pointed out on Thursday.He acknowledging that the facility was intended to be a revolving one supported by Government and bolstered by repayments to ensure the availability of financing support for UG students in need.
“The level of repayment of student loans is not where we want it to be…it is not where it should be,” Dr. Singh lamented during a news conference at the National Communications Networks (NCN) Homestretch Avenue, Georgetown studio.
He stated that alternative courses of action to encourage greater levels of repayment will be taken in the coming months.
“This is something that we recognise in Government and I believe that corrective action has to be taken to achieve higher level of compliance and a higher level of repayment,” the Finance Minister stated.
According to him, the repayment of the loans, which attract a “very low” interest rate, is very poor, with millions owed to the University.
In the meantime, he said he could not commit to a time when the current Administration would address the restoration of the $450M for the student loans but assured that the Government is cognisant of the urgency of the matter.
“We are fully mindful of the circumstances in relation to this item and we are attentive to its implications. The people of Guyana can be assured that the Government is mindful of the urgency of these matters and appropriate action will be taken,” Dr. Singh assured.
Additionally, the UG Vice-Chancellor, Professor Jacob Opadeyi, at a previous press conference, warned of possible reduction of programmes offered by the institution, which are not substantially subscribed to by student.
The implications of this action extends to the fate of lectures and have caused major uproar at the University.
President of the University of Guyana Senior Staff Association (UGSSA), Dr. Patsy Francis has since demanded that the Administration must devise a plan that will see the $450M student loan subvention restored, thus offsetting the looming call for the increase in tuition.
The total allocation of $450M was chopped from the National Budget by the combined Opposition, A Partnership for National Unity (APNU) and the Alliance for Change (AFC) in a parliamentary vote.
The parties have since maintained the defence that the allocation for UG was linked to other provisions for which they were opposed and, given the ruling by Acting Chief Justice Ian Chang that individual line items could not be cut from the Budget, the entire sum, that included the student loan monies was removed.
The Government, in turn, has underscored the fact that the National Budget is presented in the same format it has been for several years now and no allocations are linked, as is being claimed by the Opposition, but listed under the relevant section in the estimates as per normal.
The student loan allocation was listed under the Ministry of Finance’s Policy and Administration capital budget. Over the years, a vast majority of the student population at the country’s premier tertiary institution has benefited from such loans and a large percentage of prospective and current undergraduates depend on them. (Vanessa Narine)

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“This is something that we recognise in Government and I believe that corrective action has to be taken to achieve higher level of compliance and a higher level of repayment” — Dr. Ashni Singh