The Student Revolving Loan Fund, which is known as the SRLF, replaced the Higher Education Loan Fund when it was established in 1977 under the Student Revolving Loan Fund Act, 1976-20. It is a corporate body. The main purpose of the SRLF is to provide funding to eligible Barbadians for priority areas of study. The SRLF makes a significant contribution towards the increasing number of Barbadians who are able to attain tertiary level qualifications.
The SRLF secured three loans from the Inter-American Development Bank and with each loan agreement expanded its focus. The first loan of US$800,000 was for on lending to eligible Barbadians to pursue studies at the undergraduate level in areas which were considered crucial for the economic and social development of the country. The loan ceiling was Bds$30,000 and the maximum repayment period ten years. The SRLF had a staff of three and depended on a financial agent for accounting and financial support.
The second loan of US$2.0 million was disbursed over the period February 1984 to 1990. It allowed the SRLF to expand and modify its programme to include studies at the post secondary, technical and vocational levels at the Samuel Jackman Prescod Polytechnic, the Barbados Community College and the National Training Board as well as at the graduate level. In 1990, the SRLF also established a Guidance and Placement Unit to serve as a liaison between the job market and potential student borrowers.
The third stage of the SRLF’s development witnessed the disbursement of a final loan of US$6.8 million during the period April 1990 to 1996. The maximum loan amount increased to Bds$50,000 and the interest rate moved from 6% to 8%.
In 2009 the Student Revolving Loan Fund Regulations were amended to among other things increase its maximum loan to $100,000; provide loans to students studying online & part-time; change the interest rate to a variable rate of 4% based on a maximum of 2.5% above the minimum savings rate; and to hold security for loans.
The SRLF’s social responsibility features prominently in its lending in that it offers a preferred interest rate; no repayment is required during the agreed study period; and an extended repayment period as well as a moratorium of interest during the study period. In addition, at the conclusion of the agreed study period, students are afforded an additional period known as a grace period, where repayment is still not mandatory although interest accrues during this period. This extra time is designed to allow students to find employment without having to immediately worry about the repayment of the loan.