Education Minister announces measures to counter rising tuition

The gathering was called in the wake of reports that the average tuition for those students could increase by 100% in the next academic year.

Lenice Barnett, Executive Director of the Students' Loan Bureau (SLB), made the shocking revelation at Wednesday's sitting of the Public Administration and Appropriation Committee.

But according to the Education Minister, Government had made it clear on many occasions that a way had to be found to rebalance funding in education.

The Education Minister says there is general agreement and understanding the SLB will have to be sufficiently capitalised so that anyone who qualifies for attendance at a tertiary institution can access funding.

Mr. Holness says some persons who now qualify for tertiary education are unable to access funding as they don't meet the requirements for a Student Loan.

The Education Minister say Government is now moving to overhaul the requirements thereby allowing for additional students to receive funding.

“It means that the government, as soon as we have created the fiscal space within the budget, will have to dedicate resources, and those resources may come through borrowing, to expand the capital base of the Students' Loan Bureau. But as we reduce the subsidies to the universities, that reduction will also be channeled into the capital base of the Students' Loan Bureau, that’s two ways of expanding,” Mr. Holness said.

The Education Minister said the Government was also looking at another option.

“The third way is to interest the private sector, particularly those pension funds and long term real estate interest in investing in the student loan and then support the student loan with the necessary protection to ensure repayment,”

“The passage of the Credit Reporting Bill that will define credit bureaus and regulate credit bureaus, it is very important that the credit history of the borrower will follow that borrower around as he seeks to access further credit, therefore the borrower has an interest in ensuring that his credit history is well,” he said.

He says tertiary level students will be required to pay more, however there will be no immediate dramatic change.

The Education Minister says the changes will be done on a gradual basis.

He said adequate notice will be given, should there be any reduction in the subsidies from Government.