SLB Reminds Borrowers of Incentive for Maintaining High GPA

The Students’ Loan Bureau (SLB) is reminding borrowers that there is an incentive for maintaining a high grade point average (GPA) during their period of study.

Manager of the SLB’s Loan Servicing Department, Cheryl Surjue, told a JIS Think Tank on October 17 that students who maintain a GPA of 2.5 and over qualify for a reduction in their interest rate, adding that these students are classified as in ‘good standing’.

“During the moratorium period, we classify good standing… say for example, you’ve gotten your first loan and you’re now applying for a second loan. If you have a GPA of 2.5 and over, you automatically qualify for a reduction in the second-year loan in terms of interest rate. You get a two per cent reduction in the moratorium; the rate is now 5.8 per cent. Two per cent would be removed,” Ms. Surjue explained.

In the repayment period, there are also special rates that apply to a person’s performance.

“If it is that you’ve consistently maintained your account in the current status in the repayment stage, then by the following year April, you will qualify for a two per cent reduction in the interest rate,” Ms. Surjue said.

She explained that the measure has always been in place to incentivise repayment.

“So right across the board, your good performance is a benefit in terms of you being in school. In the moratorium stage for the targeted loan and also in repayment, it is beneficial for you to consistently repay your loan, maintain a current status, so you can further benefit from a two per cent reduction in your interest rate,” she said.

The targeted loan is the most popular loan offered by the lending institution.

It enjoys a moratorium period, wherein the borrower is not required to repay the loan while in school.

The moratorium covers the period in school and 14 months following the programme completion.