Approximately 4,000 public sector workers on the government 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.
These overdue payments will be recovered through salary deductions from the government workers. This action follows existing legal and regulatory provisions for public-sector payroll administration. This initiative will strengthen loan recovery mechanisms and ensure the long-term sustainability of the student loan scheme. The SLTF disbursed more than GHS 127 million to over 46,000 students recently.
This development is crucial for Ghana’s public finance management and educational funding. The government aims to improve compliance among loan beneficiaries. Stronger loan recovery directly impacts the SLTF’s ability to provide financial support for tertiary education. This move also reflects broader efforts to enhance accountability within the public sector. Increased compliance ensures more Ghanaian students can access higher education.
Controller and Accountant-General, Kwesi Agyei, announced this plan on Thursday, June 18. He spoke at the launch of the SLTF’s 20th-anniversary activities. Mr. Agyei stated, “We have already identified over 4,000 on the government payroll through the collaboration with the Trust Fund.” He added that salary deductions would become a significant statutory sanction. The SLTF’s Chief Executive Officer, Dr. Saajida Shiraz, also reported a 50 percent increase in access to the regular student loan package. This improvement resulted from timely funding from the Ghana Education Trust Fund (GETFund).
The planned deductions will improve compliance among public sector employees who received student loans. This measure will also enhance overall loan recoveries, ensuring the SLTF's financial stability. Financial markets will watch closely for the successful implementation of these deductions. Increased SLTF sustainability will encourage continued investment in education. Decision-makers aim to ensure consistent financial support for future generations of students.
The Student Loan Trust Fund has been critical for educational financing for two decades. Its ability to collect outstanding loans ensures it can continue its vital mission. The Board Chairman of GETFund, Emmanuel Bedzrah, reaffirmed GETFund’s commitment to releasing funds on time. This ongoing support ensures the SLTF can continue to meet student loan requests. A robust SLTF means fewer financial barriers for students pursuing higher education in Ghana.