Published 6 April 2023
Buckie Got It, St Kitts Nevis News Source
GOVERNMENT OF ST. KITTS AND NEVIS LAUNCHES ITS GRADUATE FINANCE PROJECT TO REDUCE THE INTEREST RATE ON STUDENT LOANS
BASSETERRE, St. Kitts, April 06, 2023 (SKNIS) – Students in St. Kitts and Nevis received some good news today (April 06), as Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew officially launched the Government’s Graduate Finance Project that will see the interest rate on student loans accessed through the Development Bank of St. Kitts and Nevis (DBSKN) reduced to five (5) percent per annum.
Prime Minister Dr. Drew made the announcement during a brief televised address to the nation.
“As of today, Thursday, 6th April, 2023, the interest rate on student loans accessed through the Development Bank of St. Kitts and Nevis for new students has been reduced to five (5) percent per annum. The intention is to ensure that graduates can live and plan for better lives,” said Prime Minister Dr. Drew.
Dr. Drew added that “The Graduate Finance Project offers five percent interest on a maximum of EC$100,000 for a grace period of four and a quarter years with a 15-year repayment term. It also includes EC$15,000 credit to service the student loan during that period, which eliminates the payment of interest for four years, three months.”
The Finance Minister said through this initiative, St. Kitts and Nevis students stand to save thousands of dollars upon their return from universities.
“A lower interest rate reduces the lifetime cost of college. Under this new policy, students will now save up to EC$50,000 or more. Typically, students return from their studies to high-interest rates and terms that delay important life events such as building their own homes or purchasing a vehicle, and so choose to remain at home with their parents to help ease the financial strain they have acquired,” Prime Minister Dr. Drew said.
The Prime Minister said this policy comes as his administration understands and appreciates that the education of the nation’s youth is of critical importance if St. Kitts and Nevis is to remain competitive.
“We understand the financial strain that resulted from the COVID-19 pandemic and therefore, it is our aim to ensure that students who desire to pursue higher education receive the necessary financial support they require. Education is the key to a progressive and successful nation. It is indeed a new day and a better way for students with this new Graduate Finance Project,” said Prime Minister Dr. Drew.