Ghana's Controller and Accountant-General, Kwesi Agyei, revealed that more than 4,000 public sector employees have outstanding student loan debts. These debts are owed to the Student Loan Trust Fund (SLTF). The Controller and Accountant-General’s Department (CAGD) will work with the SLTF to recover these monies.
The recovery process will involve deducting loan repayments directly from the salaries of these government workers. This action follows existing legal rules for managing public sector payrolls. Mr. Agyei made this announcement on Thursday, June 18, during the SLTF's 20th-anniversary celebration. The initiative aims to strengthen loan recovery methods and ensure the student loan program can continue helping students.
This development comes as Ghana faces ongoing pressure to manage public finances efficiently. Recovering these outstanding loans will help reduce the financial burden on state institutions. It also highlights the broader effort to enforce financial discipline among public sector employees. Such measures are crucial for the sustainability of government-backed schemes like the student loan program.
Mr. Agyei stated, “We have already identified over 4,000 on the government payroll through the collaboration with the Trust Fund.” He added that discussions are underway with the SLTF to finalise the details of these deductions. These deductions are expected to become a standard part of public sector salaries. They will compel beneficiaries to honor their repayment commitments.
These upcoming deductions are likely to increase compliance among former students who are now government workers. This will improve loan recoveries for the SLTF. Better recovery rates ensure the fund remains financially robust. This means future university students can continue to access financial support for their education. This initiative contributes to the national goal of increasing access to higher education in Ghana.
The SLTF has intensified its efforts in recent years to boost repayment rates. This also includes expanding access to tertiary education financing. Loan recoveries are vital for the fund’s continuous operation. Successful recovery efforts allow the fund to disburse more loans to new students.
Dr. Saajida Shiraz, the CEO of the Student Loan Trust Fund, announced a 50 percent increase in the regular student loan package. She credited this improvement to the timely release of funds from the Ghana Education Trust Fund (GETFund). This has significantly enhanced the fund’s ability to support students. The SLTF has disbursed over GHS 127 million to more than 46,000 students. This shows its commitment to broadening educational opportunities.
Emmanuel Bedzrah, the Board Chairman of GETFund, reaffirmed GETFund's commitment. He said GETFund will continue to support student financing by releasing funds promptly. GETFund will keep working with the SLTF. This collaboration ensures students receive necessary financial assistance for their academic pursuits. The Student Loan Trust Fund began providing financial aid to eligible university students two decades ago. It has become a vital source of education funding for thousands across the country.