The government's low-interest student loan scheme will offer a haircut and unpaid interest reduction to encourage its debtors to repay after the default rate surged to 70% of loans outstanding, says Areepong Bhoocha-oom, the finance permanent secretary.
Student loan debtors can apply for the programme between November and March. The scheme will offer a 3.5% principal haircut to debtors who have a good payment record and want to pay off the lot in one lump sum.
It will also cut overdue interest by 50% to delinquent debtors who want to pay off the debt at one time, and waive ongoing overdue interest for those who want to pay off the debt in instalments.
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