An audit into the Education Loan Authority, found that in June 2017, the authority’s loans receivable, net provision of $16,336,710 amounted to $60,507,578 of which $51,384,289 was over 90 days in arrears.

The report revealed that the authority was unable to obtain the necessary historical default rates in its loans receivable portfolio.

It also found that repayments of loans receivable by students in the current and subsequent years have not been sufficient to meet the authority’s obligations in relation to the loan commitments and operating expenses.

The report also noted that loans in default, where students have been delinquent in their monthly payments for more than three months, amounted to $67,720,999 compared to the $81,334,161 in 2016.

During the year, the authority wrote-off bad debts amounting to $1,861,065 representing 70 percent of the current principal and interest pertaining to accounts settled in relation to the incentive program.

Further, the authority recorded a reversal of provision for impairment, amounting to $1,173,823 pertaining to penalties and late fees.

In total, loans settled including interest and penalties in relation to the incentive program amounted to $3,034,888.

Meanwhile, total administration fees for the year amounted to $165,419 compared to the $169,726 in 2016 and administration fees payable amounted to $250,159, compared to the $84,740 the year before.

Bond interest incurred by the authority during the year amounted to $3,222,767 of which $1,063,740 was outstanding.

According to the report, prior to July 2007, the Ministry of Finance advanced $2,000,000 to the authority.

The advance bore interest. However, effective July 1, 2007, the amount due to the Ministry of Finance totaling $2,900,193 was converted to contributed surplus,  pursuant to instructions from the Ministry of Finance.

The audit was conducted by Grant Thornton Bahamas.