Many Colombians to complete their studies must go to a loan with Icetex, which often becomes a headache to have a debt present for many years. However, from next year those who are beneficiaries of this type of credit will have the option to decide if they want the installments of the payment of this obligation to be adjusted to their monthly income so that they can have a payment facility.

This new modality was included in the draftGeneral Budget of the Nation (PGN) 2022that was approved by the Congress of the Republic, in article 118, and is called a contingent payment mechanism.

How will it work?

The value of each monthly installment will depend on the debtor’s income in the previous month. To have control over this, it will be the employer itself who has the management of the collection.

Do you want to have a new job opportunity? Register your resume here.

This will benefit families and young students who will no longer have to pay a monthly fee while they are studying asthey will be able to start paying only when they enter the formal labour market.

The salary

One of the questions that arises in the face of this new mechanism is whether it will apply to young people who earn a minimum wage. At this point, according to Icetex, the formula to determine thevalue to be paid each month will depend on the salary received by the debtor. This is regardless of the salary that the person has, however, it should be noted that the first minimum wage will be excluded from collection.

So, in the event that a young person is earning a minimum wage or lesshe will not have to pay that month since his income status was below this threshold.

This amount paid will be adjusted depending on the income that the person has.

New credit term

Now it will be allowed that ina maximum period of 20 years the debt can be canceled.

During this time the person can pay the full value of the debt and be released from the obligation.

In addition, in the event that the person who takes advantage of this formula and reaches year 20 paying his quota month by month, without being able to cancel the entire value of the credit, the obligation is forgiven without prejudice to the beneficiary.

So far it has not been defined how many people will be able to access this, however, although it is designed for new users, old debtors can also be welcomed, but they must request it voluntarily.