Approximately 4,000 government employees currently on the public payroll have outstanding student loan obligations. The Controller and Accountant-General's Department (CAGD) will collaborate with the Student Loan Trust Fund (SLTF) to recover these debts. This recovery will primarily occur through direct salary deductions, aligning with established legal and regulatory frameworks for public-sector payroll.
This recovery effort is a critical step to ensure the financial health of the student loan scheme. It aims to strengthen loan recovery mechanisms and ensure the long-term sustainability of the SLTF. The goal is to allow more students to access financial support for their tertiary education in the future. The initiative also seeks to improve compliance among graduates now employed in the public sector.
Ghana's public finance stability relies on effective debt recovery across various sectors. The large amount of outstanding student debt impacts the government's ability to fund other essential services. This move follows broader efforts by the SLTF to improve repayment rates and broaden access to tertiary education financing. Loan recoveries are a key pillar in sustaining the SLTF's operations, as evidenced by its recent disbursement of GHS 127 million to over 46,000 students.
Kwesi Agyei, the Controller and Accountant-General, made this disclosure on Thursday, June 18. He spoke at the launch event for the 20th anniversary of the Student Loan Trust Fund. Mr. Agyei stated, "We have already identified over 4,000 on the government payroll through the collaboration with the Trust Fund." He added that details for implementing these deductions would be finalized soon. He expects these deductions to become a significant statutory sanction on salaries.
The planned deductions are set to improve repayment compliance among former beneficiaries working in the public sector. This measure will also enhance overall loan recoveries, boosting the SLTF's financial sustainability. This ensures future generations of students can continue to benefit from the scheme. The timely release of funds from the Ghana Education Trust Fund (GETFund) has significantly boosted the SLTF's capacity.
Dr. Saajida Shiraz, CEO of the Student Loan Trust Fund, announced a 50 percent increase in access to the regular student loan package. She attributed this positive development to GETFund's consistent and timely release of funds. The fund has disbursed over GHS 127 million to more than 46,000 students. This achievement reflects ongoing efforts to expand educational opportunities and reduce financial barriers for students. Emmanuel Bedzrah, Board Chairman of GETFund, reaffirmed GETFund’s commitment to supporting student financing.