DEBT FREE!
SLB releases senior citizen guarantor from obligation to pay $1.1 million owed by borrower who died
Published:Thursday | June 27, 2024 | 12:09 AMBarbara Gayle/Gleaner Writer
Senior citizen Cynthia Brivit was rejoicing yesterday and praising the Students’ Loan Bureau (SLB) for releasing her from the threat of being left homeless as a result of an unpaid loan for which she stood as guarantor in 2007.
“They have released me, they have released me. Praise God!” Brivit shouted with gratitude and excitement yesterday after receiving communication from the SLB.
“This letter hereby serves to advise that you have been released of your liability on the captioned account effective June 26, 2024,” stated the document signed by Shellian O’Gere, manager of the SLB.
“As a result, you no longer have an obligation to the Students’ Loan Bureau.
“We extend our best wishes for your future endeavours.”
The other guarantors were copied on the release letter which was dated June 26.
On Monday, The Gleaner carried an article outlining the plight of Brivit who said she was distressed and having sleepless nights after receiving a demand letter this month for $1.1 million, arising from what she said was a loan of $100,000, for which she stood as guarantor. The demand letter, from a law firm representing the SLB, included threats of court proceedings and the likelihood of her house in Greater Portmore being sold to recover the debt.
SLB advertisement
Today, the SLB responded to Monday’s Gleaner article, by way of an advertisement published in this newspaper.
The SLB states in the ad that it “sincerely empathizes with Miss Brivit (Guarantor) given the distress and grief caused by the issuance of this demand letter. We have promptly issued contact with her to resolve the matter”.
Brivit, along with the two other persons, had guaranteed a loan for Marvalee Martin, who was delinquent in paying the loan. Martin has since died and the SLB acknowledged that its records indicate that a death certificate was submitted to the SLB in 2018. The SLB stated that each new loan is insured, but disclosed that, in the case involving Brivit as guarantor, the insurance policy had lapsed, as the account was delinquent for a significant period prior to the death of the borrower. The monthly payments were not made and therefore the insurance had not been paid for the loan. The arrears remain outstanding to date, with only one payment being made, the SLB stated. It also noted that the guarantor stated that she believed that, since the borrower died she would not have responsibility for the loan. The borrower had attended the St Joseph’s Teachers’ College during the academic years of 2007, 2008 and 2009.
“However, she remains obligated to pay the loan, given that requirements for settlement from the insurance fund were not met,” the SLB states in its advertised statement.
“While we note the legal position posited in the article, it is critical to clarify that loans issued by the Students’ Loan Bureau are pursuant to statute and our position is that the law provides that such loans are not simple contracts subject to the regular six years limitation period, but extend to 20 years,” the SLB argued.
The SLB said it was encouraging customers to make immediate contact when they have difficulty making repayments “as we offer other solutions regarding repayment and product offerings”.
Effective April 1, students entering tertiary institutions no longer need guarantors for loans from the SLB.