THE Ministry of Finance has announced that persons with student loans will be granted a 75 per cent reduction in the accumulated arrears of interest on their accounts if they clear their indebtedness in full by October 31.

The Ministry in a release also said that persons who wish to bring their accounts up-to-date will be granted a 50 per cent reduction in the accumulated arrears of interest, if their accounts are brought up-to-date by October 31.

If, however, a borrower defaults, subsequently, the interest waived will be restored in full to the account, the release said.

The Ministry noted that borrowers whose accounts were current for at least three years at July 31, 2016 will benefit from a 50 per cent reduction on all future interest once the account does not go into arrears.

“If the account lapses into arrears, all interest waived will be restored.”

The Ministry further noted that borrowers whose accounts were current for at least two years at July 31, 2016, will receive a 50 per cent reduction on the interest accumulated prior to the repayment due date of the loan. This reduction, it said will be given in the form of a monthly credit against future payments, but if the account goes into arrears, all interest waived will be restored to the account.

“The Ministry of Finance urges all borrowers to visit the Student Loan Agency without delay to discuss repayment plans and how they can benefit from these offers,” the release concluded.