BASSETERRE, ST. Kitts – Prime Minister Dr. Terrence Drew Thursday launched the “Graduate Finance Project” allowing for a significant reduction in the interest rates for students loans, saying that the initiative is vital to ensure that “meaningful change and development is fostered in education within the twin island Federation.
Prime Minister Terrence Drew announcing new student initiative (CMC Photo)”As of today, Thursday April 6, 2023, the interest rate on student loans accessed through the Development Bank of St. Kitts and Nevis (DBSKN) for new students has been reduced to five percent per annum,” Prime Minister Drew said, adding that the “intention is to ensure that graduates can live and plan for better lives”.
He said that the project offers five percent interest on a maximum of EC$100,000 (One EC dollar=US$0.37 cents) for a grace period of four and a quarter years, with a 15 year repayment term.
It also includes an EC$15,000.00 credit to all student loan holders to service their student loan during that period, which eliminates the payment of interest for the four years and three months.
Prime Minister Drew said that a lower interest rate reduces the lifetime costs of college and that under this new policy, students will now save up to EC$50,000.00 or more.
”Typically, students return from their studies to high-interest rates and terms that delay important life events such as building their own homes or purchasing a vehicle, and so, choose to remain at home with their parents to help ease the financial strain they have acquired.
“It can be challenging for someone to handle both a mortgage payment and a student loan payment. Having the debt can also make it hard to qualify for a mortgage in the first place,” Prime Minister Drew said, adding that “home ownership is one of the largest builders of wealth, so delaying the purchase of a home can have a major effect on a student borrower’s ability to increase his or her wealth”.
He said the reduction of the student loan interest rate to five percent, in addition to the credit offer will ease the student finance complex.
”We understand the financial strain that resulted from the COVID-19 pandemic and therefore, it is our aim to ensure that students who desire to pursue higher education receive the necessary financial support they require,” Prime Minister Drew said, noting “education is the key to a progressive and successful nation”.
