In keeping with what was promised at the presentation of the 2024 National Budget, Finance Minister Dr. Ashni Singh on Monday announced the commencement of phase one of the student loan write-off.
In this first instance, the government will write off all loans owed by Guyanese who can demonstrate that they completed their studies, graduated, and were employed in Guyana for a minimum of three years.
To prove this, the person is expected to show proof of 156 contributions made to the National Insurance Scheme (NIS).
Dr. Singh, in the short televised broadcast, said this is intended to acknowledge the contributions made by persons who utilized their education to contribute to the the development of country.
Their employment could have been in the public or private sector.
Dr. Singh believes some 13, 000 Guyanese stand to benefit in this first phase that will see up to $11 billion in student loan debt being written off by the government.
He further noted that this is in keeping with plans to create a society where all Guyanese have the opportunity to lead productive and happy lives while reducing the inequality in education, health and social services.
The People’s Progressive Party Civic (PPP/C) government has promised to make tertiary education free by 2025 but before that, it has begun to wipe out loans owed by University of Guyana (UG) graduates.
In December last year, President Dr Irfaan Ali said the government would deliver on its promise to make university education free and will undertake a step-by-step approach from 2024.
During a year-end interview with the News Room, President Ali said the government would deal with students paying loans first.
Dr. Singh said this is a long way from the travel bans imposed by the former government on students who had outstanding loans.
Earlier this year, Vice President Dr. Bharrat Jagdeo also said the UG debt wipeout could potentially cost $18 billion.