President Guillermo Lasso signed a decree that condones interest, fines, and surcharges for educational loans, scholarships, and financial aid. The document will go to the Constitutional Court.
President Guillermo Lasso signed a new decree law on July 4, 2023, this time the objective is to benefit citizens who have coactive for educational loans.
The document intends waive 100% interest, penalties and fees for educational credits, scholarships and financial aid that have expired.
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“This initiative will definitively support the financial burden of people with coercive processes, because the country needs them active, free of obstacles, producing,” said Lasso.
With this, the President wants to give way to the reforms that were denied by the National Assembly. The decree law would modify four laws and would allow citizens with coactives in this area to take advantage of the benefit.
In a event in Carondeletthe authorities explained that this will improve the credit rating of the beneficiaries and the measure may be extended to the main debtor, their spouse, dependent child and relatives who suffer from a disability.
What does the new decree law contemplate?
The proposal will encourage the payment of the outstanding principal of the credits, whose value amounts to USD 49.6 million.
It also establishes the possibility of signing a payment agreement for student debt up to USD 45,000.
And, if the debtor is unemployed, they will be able to access a six-month grace period, without interest or surcharges.
If the reform is applied, more than USD 1.1 million would be forgiven for default interest.
With this, according to Lasso, more than 60,000 beneficiariesamong people in coactivas, who are already currently paying their credit, family members and guarantors.
Like the other decree laws that the President has signed, this must pass the filter of the Constitutional Court (CC) to enter into force.
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2023-07-05 11:55:22
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