The president of Chili, Gabriel Boricannounced this Monday his promised bill to forgive part of the debt that more than 1.2 million university students contracted in special loans to pay for their studies, while presenting a new public financing system.
“Most of those who are hearing these words today know someone who today is in debt for having studied in higher education with the Credit with State Guarantee (…) Today the CAE It’s a problem for everything Chili”, he said on national television Boric.
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Created in 2005 during the Government of socialist Ricardo Lagos (2000-2006), the CAE allowed thousands of young people with limited resources to access universities, but “Over time it became a burden for students and their families,” added the president.
Despite what was promised in the campaign, the condonation It will not be universal, but partial, and will be madebased on criteria of justice and merit“, and it will be taken into account whether the person finished his degree or if the debt is up to date, he explained. Boric.
“Thus, we will support debtors with fewer resources, we will recognize to those who have responsibly paid their dues and we will encourage regularization of those who still owe payments”, he indicated.
The legislative initiative, which will be presented this Tuesday in Parliament – where the Government does not have a majority – replaces the CAE by the so-called Public Financing for Higher Education (FES), an instrument with which the benefited students do not disburse resources or go into debt, but rather pay for their degrees with a kind of progressive tax when they join the labor market, of no more than 8% of their monthly salary.
The FES, pointed out Boric, “will imply a fiscal expenditure significantly lower than what the State currently disburses for CAE”which to date amounts to 9 billion dollars.
“The banks will not participate in this new instrument of financing. With the FESthere will be no room for speculation, the abuse“Not for profit, but fair remuneration for the training received.”he concluded.
Boric38 years old, forged his political career in the student mobilizations of 2011 in favor of free and against CAE.
The initial interest of CAE It was 6%, but after the mobilizations the rate was reduced to 2% during the center-right government Sebastian Piñera (2000-2014).
Still, those who graduate tend to earn low incomes and pay the credit to the banks for years.
