PHILIPSBURG--Civil servants are not automatically entitled to the 50% student loan forgiveness that Prime Minister Dr. Luc Mercelina referred to during a press briefing in April 2025, he clarified during Parliament’s budget debate.
Mercelina said student loan forgiveness is an incentive that government may provide as part of its recruitment and retention policy for specific categories of employees, rather than an automatic entitlement or right.
The legal basis for the incentive is the Instroombeleid 2012 (LB 2011/1908). Under the policy, qualifying “Landskinderen” with student debt may receive forgiveness or reimbursement of up to 10% per year, to a maximum of 50%, subject to conditions including satisfactory performance and compliance with applicable procedures.
Mercelina said the statements made during the April 2025 press briefing were intended to highlight existing incentives available to attract graduates and professionals back to St. Maarten. He stressed that those statements should not be interpreted as meaning every civil servant automatically qualifies for 50% loan forgiveness.
Eligibility remains subject to the applicable policy, established criteria, approval procedures and available financial resources, he said.
Mercelina was also asked about cases in which an individual's study financing was revoked after the person had already entered government employment.
He said the Instroombeleid 2012 primarily addresses the existence and amount of study debt and the employee’s continued service and performance, but does not explicitly address every situation in which study financing is later revoked, modified or otherwise affected after employment begins.
Such cases should be assessed individually by P&O and the competent authorities, taking into account the facts, applicable policy and purpose of the incentive scheme.
Mercelina agreed that greater clarity and consistency are needed. He said the issue could be examined as government reviews its recruitment and retention incentives so employees have a clearer understanding of their eligibility and obligations under the policy.
