Student loan delinquency reaches 48.22% as lawmakers scrutinise borrowing costs

Almost half of the Students’ Loan Bureau’s borrowers had overdue payments as at March 2026, triggering concern about whether Jamaica’s education loan system is affordable for graduates. The matter was examined on Thursday by Parliament’s Public Administration and Appropriations Committee.

SLB Executive Director Nickesha Walsh told the committee that delinquent accounts represented 48.22 per cent of the bureau’s borrowers. Committee members questioned whether the terms attached to the loans were making it harder for people who intended to repay their debts to remain current.

The lawmakers suggested that an expensive repayment framework could force some borrowers into arrears, even while allowing the bureau to collect substantial sums from those with stronger finances.

According to Walsh, borrowers have blamed their missed payments on several pressures. These include unpredictable earnings from self-employment, other financial commitments and an inability to secure adequate employment after completing their studies.

The bureau expects digital services and greater engagement with borrowers to improve repayment levels. Walsh said an online portal now enables customers, including Jamaicans who have moved overseas, to view their accounts and submit payments from wherever they are. She expressed hope that delinquency would fall during the 2026-2027 period.

However, PAAC member Mikael Phillips argued that easier payment access would not resolve the wider challenges. He said students, especially those living in rural communities, required additional assistance before their loans entered the repayment phase.

Phillips also challenged the affordability of the SLB’s interest structure, comparing it with commercial lending and noting that some vehicle loans were available at lower rates.

Walsh accepted that borrowers were facing difficult economic circumstances and said the bureau was revising its policies and methods. She indicated that the SLB no longer wanted to rely on its previous approach when dealing with people trapped in recurring financial difficulty.

The agency is holding community fairs and plans to work with outside organisations to expand its presence in communities. The outreach is intended to help more Jamaicans understand the benefits and services offered by the SLB.