Interest Rate On Existing Student Loans At DBSKN Reduced To 5%

Interest rates on existing student loans at the Development Bank of St. Kitts and Nevis (DBSKN) will be reduced to 5%, effective today, June 1. This new initiative, which is expected to bring financial relief to students, is part of the second phase of the government’s Graduate Finance Project.
 
Prime Minister of Saint Kitts and Nevis and Minister of Finance Hon. Dr. Terrance Drew made the announcement recently.
 
“Students who are presently paying at 9%, from the 1st of June you are encouraged to go to the Development Bank and have your interest reduced from 9% down to 5%. This will give students space to buy a home, invest in a business, after all this is what they left to study for”, said Prime Minister Drew during his Opening Statement at the press conference. The initiative, which was listed among the proposed projects in the SKNLP’s POST COVID RESET campaign, brings substantial relief to our students affording them adequate opportunity to pursue their life goals.

“We want that when students go to study, they can quickly transition into independent living,” Dr. Drew stated.

All students with existing student loans are asked to contact the Development Bank of St. Kitts and Nevis to schedule an appointment with a bank officer to initiate the process. Students will be required to complete the necessary paperwork and ensure that they have two (2) pieces of Identification Cards and proof of address for their appointment.

The Graduate Finance Project was introduced on April 6, under the theme “Removing Financial Barriers to Education” and offers 5% interest on student loans, to new students within the Federation, on a maximum of EC$100,000.00 for a grace period of four and a quarter year (4 years, 3 months), with a fifteen (15) year repayment term. It includes an EC$15,000.00 credit to service the student loan during that period, which eliminates the payment of interest for the 4 years, 3-month period. The 5% interest takes effect after the 4 years, 3-month period.