Education Loans

Loans will be granted to finance local, regional (Caribbean and Central America) and Extra Regional (North America, Canada, Europe, UK, etc.) courses of studies as follows:

• Tertiary level courses for up to five years duration or parts thereof  including the final year
• Specialized vocational & Professional Courses not exceeding three years

Who can borrow?

Any student who is 15 years of age or over may participate in the Student Loan Program. For cases below the lending age (18 years), the application must be done through a parent, guardian, and/or sponsor. Students whose parents or guardians earn an average gross annual income under $79,600 are eligible for loans under the program.

What courses can be financed?

Loans can be used to finance courses in accordance with the priority list approved by DFC’s Board of Directors as follows:

• Agriculture/Agriculture Economics
• Engineering including Petroleum Engineering
• Natural Resource Management & Environmental Studies
• Accounting
• Computer Science/Information technology
• Curriculum Development and Planning
• Economics
• Education
• Hospitality Management
• Finance
• Psychiatry
• Nursing Administration
• Public administration
• Sociology
• Business & Management Studies
• Tourism

Loans to study abroad will not be available for courses which are available at local institutions. However special consideration may be given to deserving cases (e.g. students with if scholarships).

Eligible Purposes

• Cost of Enrollment
• Tuition, books and related expenses
• Transportation and personal expenses (boarding and lodging)
• Loan closing costs and life insurance during grace (in deserving cases only) 

What are the Collateral Requirements?

Security requirements will vary with the size of the loan:

• Loans up to $7,500, require one third Party guarantor
• Loans ranging from $7,501 to $15,000 require two Third Party guarantors.
• For Loans in excess of $15,000 security in the form of real estate or other accepted instruments will be necessary

Loan Size

• Loan size will not exceed $40,000 for courses of studies with the duration of up to two years and $60,000 for courses of studies in excess of two years.
• Disbursement of loan funds will normally be made directly to the institutions or service provider on behalf of the borrower. Only in exceptional circumstances will loan funds be disbursed directly to the borrower. Clients are required to account for disbursement by providing receipts where practical.

Repayment Terms

• Repayment terms vary with loanamount
• A student can be allowed up to 6 months after completion or termination of the course of study to begin repayment of the outstanding principal balance (grace period).
• The period of repayment can beup to 12 years inclusive of up to 5 ½ years grace period on principal payment depending on the course of study.
• Interest charges will be 11%(variable) per annum on the outstanding loan balances.
• The borrower is required to pay whatever interest becomes due on the outstanding loan balance during grace period

N.B. All student loan beneficiaries will be required to effect Mortgage Cancellation Insurance coverage under DFC’s Group Insurance Scheme for the duration of the loan. Payment of premiums will be the responsibility of the client/guardian.
Submissions

• Application form (to becompleted at the time of the interview).
• Copy of a valid photo identification (social security card , passport, voter’s identification)
• Certificates, Diplomas andTranscripts from recently attended institution
• Letter of acceptance from school including details and cost of course
• Particulars on security (RealEstate, guarantor(s))
• Evidence of client’s contribution including school grants, scholarships, etc.