SLB working to address problems with new reducing balance system
Executive Director of the Students’ Loan Bureau (SLB), Monica Brown, says the lending agency is working to address problems with its system which has caused some borrowers not to benefit from the new reducing balance scheme.
Last year April, the SLB moved to a reducing balance system under which the interest on loans is calculated on the outstanding balance.
Previously, the SLB used the add-on method where interest was computed on the principal amount borrowed.
However, some borrowers have been complaining that they are still being charged under the old system.
However, Brown says only a small number of borrowers are being affected.
She notes that about 99 per cent of loans have been converted to the new system.
Brown, who was speaking in an interview on Independent Talk on Power 106 FM this morning, said the SLB is undertaking efforts to fix the problem.