Banks say they may look more ‘sympathetically’ on a scheme if the States committed to underwriting it. It would mean that if students are unable to pay back their debt, taxpayers would foot the bill.
Education Minister Rod Bryans and chief officer Justin Donovan said that extensive talks had been held with individual banks and the Jersey Banking Association about firms committing to offering a loan scheme but all have said such a move would be too risky and offer no commercial benefit.
However, Mr Donovan told the Education and Home Affairs Scrutiny Panel yesterday: ‘The Jersey Banking Association said they understand the position but the risks were just too high and the default rate would be too high, albeit lower than the UK. They do not want to get into the business, in such a small community, of taking people’s assets away.
‘They did say they would look at it more sympathetically if the States underwrote the loans.’
Treasury Minister Alan Maclean was unavailable for comment.
JEP Extra is more than just your daily newspaper. It’s multimedia package which delivers the paper to your door, your mobile and your tablet or PC daily
