BAVINA SOOKDEO
The transition from vacation to the classroom is an exciting time for students, parents, and teachers alike.
Yet, the financial pressures of back-to-school expenses can cast a shadow over this enthusiasm.
What is there to assist with the financial strain many families experience during this time? These financial pressures have led to a growing need for solutions that can alleviate the burden, and financial institutions have responded by offering tailored education loans.
According to Dianne Joseph, CEO of the Co-operative Credit Union League of TT, “All credit unions offer loans for education purposes or what is popularly known as 'back to school' loans.”
These loans are made available with an interest rate of around 6.6 per cent per annum, which is notably lower than other forms of borrowing.
Additionally, Joseph mentioned that many credit unions offer even lower interest rates of around 0.75 per cent. These loans are structured to ensure minimal fees and manageable terms, aligning with members’ financial capabilities.
The concept of education loans within credit unions is not a recent development; rather, it aligns with the fundamental principles of these organisations.
She said, “Since the inception of credit unions, the facility of loans for education purposes has been in effect.”
These loans adhere to co-operative principles that emphasise education, training, community support, and empowerment. Education loans cater to primary, secondary, and tertiary level students, as well as parents and teachers who may require financial assistance to support their return to classes.
She pointed out that over 60 per cent of credit unions offer bursaries for primary, secondary and tertiary students to minimise the hardship that they face in properly funding their educational needs. Many credit unions have been donating items – school notebooks and other necessities – to members of the credit unions and those within the community which they serve.
As the years have progressed, the need for education loans has witnessed a steady rise. However, a noteworthy shift occurred in the wake of the covid19 pandemic.
“Following the return to normalcy after the covid19 pandemic, several members have shown a higher level of caution in their borrowing,” she said.
Economic uncertainty prompted individuals to tap into their savings and share accounts to cover expenses such as school-books, uniforms, and related items. This trend reflects a broader sense of financial prudence and a desire to ensure financial stability against potential shocks.
Moreover, the economic challenges brought about by the pandemic have led to a reconsideration of additional income-generating activities.
[caption id="attachment_1031859" align="alignnone" width="683"] Dianne Joseph, chief operating officer of the Co-operative Credit Union League. -[/caption]
She said, “Many members have cited a reduction in their ability to pursue additional jobs due to the high crime rate in the country.”
The impact of these circumst
