The recent announcement by the President of Chile, Gabriel Boric, about the end of State Guaranteed Credit (CAE) and the presentation of a new bill has generated great expectations among students and graduates of the country.
This project proposes a new financing mechanism for higher education, called Public Financing for Higher Education (FES), with three main axes: condonation partial debts, the reorganization of existing debts and the definitive elimination of the CAE. This change represents an effort to improve access and alleviate the financial burden of those who accessed education through this credit.
One of the most important aspects of the announcement is the condonation of debt for those who are indebted to the CAE. According to what the President stated, this remission will be partial and will depend on several factors. It will be evaluated whether or not the beneficiary finished his degree, if he keeps his payments up to date and how many installments he has paid so far. In this way, the aim is to provide greater support to those who have fewer resources, in addition to recognizing those who have consistently fulfilled their obligations.
The bill also contemplates the reorganization of the debt for those who, even after initial forgiveness, still have outstanding balances. In this sense, two alternatives will be offered: the first, aimed at those who can pay 75% of their balance in advance, which will allow them to put an end to their credit permanently. The second option will allow those who cannot make this prepayment to reorganize their debt into installments adjusted to their income, with the advantage that these installments will be lower than the current ones and will be exempt from certain payments.
This comprehensive approach, which combines forgiveness with rescheduling, is primarily intended to reduce the financial burden on debtors of the CAE. In addition, it seeks to encourage those who are not yet up to date with their payments to regularize their situation, granting them facilities to do so under a fairer and more accessible scheme. According to the above, these measures aim to balance the responsibility of debtors with more humane treatment in accordance with their economic circumstances.
