The decision of the Students' Loan Bureau (SLB) to hire an overseas-based investigator to track down delinquent borrowers
living in the United States is but another sad commentary on the sense of responsibility of many of our Jamaican students.
We support this move by the bureau, the considerable expense involved notwithstanding.
For many years, the agency has relied on moral suasion to get students to service their loans so that other clients may benefit from what is essentially a revolving scheme. The general indifference shown on the part of some borrowers has forced the SLB into taking a tougher stance as they seek to collect. We support these moves, mindful of the fact that some students have been unable to find employment or may be faced with other financial demands as they seek to establish themselves as young professionals.
The fact is, the SLB has been able to establish that some of its borrowers are making payments to other institutions within Jamaica's banking system. So, it really is a matter of priorities. Unfortunately, the culture of deferred gratification is not very strong in Jamaica and so for some graduates, it is not only important that they should do well and establish themselves in their jobs, they must also be seen to be doing well. So the priorities for them are to acquire the status symbols that show they are 'making progress'. Clearly, as we have pointed out, not all borrowers who are unable to service their loans fall within this category, but there are systems in place to address and work along with those.
But as the SLB has pointed out over the years, there are many ways in which borrowers can service their debts without it being the tremendous burden that many complain of. For example, there are moratoriums on payments and sometimes deferred payment arrangements are made. The SLB's recent policy of publishing the photographs of chronic delinquent borrowers was resorted to only after repeated attempts to contact them failed or as a result of them having failed to contact the bureau for at least a year to work out a deferred payment plan.
This plan to hire a tracker may prove to be quite costly but would be unnecessary if more of our people accepted their responsibility and made good on their commitments. In other societies, including the United States, where a bad credit record carries some consequence for their ability to obtain access to other financial services, people have a better appreciation of the need to service their debts.
There will always be those who are sure they can beat the system. Let's hope that this latest attempt by the SLB will help plug another route through which they hope to escape.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
