Incentive for loans repayment
THE Ministry of Economy is in talks with credit institutions to allow students on State loans to obtain loans.
Tertiary Scholarships and Loans Service (TSLS) chief executive officer Hasmukh Lal said they were in touch with the ministry and were working with financial institutions, particularly the credit organisations to give loans to the students.
He said the Accelerated Repayment Incentives were categorised in three stages and were dependent on the period taken by students to pay the accrued amount.
“For example, if you have got the debt between $20,000 to $49,999, you got three years to get that 50 per cent discount,” he said.
He said the ministry was working with the financial institutions, particularly credit organisations, to provide loans to students so they could maximise the benefits of the 50 per cent discount.
“We are in touch with the Ministry of Economy, and they are working with the financial institutions, particularly credit organisations to give loans to the students so that they can maximise the benefit of this 50 per cent discount that is given to them.
... credit organisations to give loans to the students so that they can maximise the benefit of this 50 per cent discount ... – Hasmukh Lal
“So, the Ministry of Economy is in touch with the financial institutions and more details will be divulged by the Government as they progress with this initiative that they’re working with the financial institutions.
“For example, if a student completes MBBS program on Tertiary Education Loans Scheme (TELS), the total debt amounts to $130,000 so, if you can get half of $130, 000 you can repay to Fiji Revenue and Customs Service (FRCS) and the remainder you can pay as a debt to the financial institution.
“So, if you do economics and mathematics, you will be still paying less to the financial institutions compared to paying the total amount to FRCS.”