Approximately 4,000 public sector workers on Ghana's government payroll have outstanding student loan obligations. The Controller and Accountant-General’s Department (CAGD) will now deduct these debts directly from their salaries.
This recovery effort aims to strengthen repayment mechanisms and ensure the long-term viability of the student loan scheme. The Student Loan Trust Fund (SLTF) will benefit from these deductions, allowing it to fund more students’ tertiary education. This collaboration between the CAGD and SLTF will impact many public servants.
This initiative fits into Ghana’s broader strategy to enhance public sector financial discipline and improve the sustainability of state-backed funds. Past reports have highlighted concerns about the rising public wage bill and the need for stronger financial controls. Data from the Controller and Accountant-General's Department regularly scrutinizes payroll integrity. This move follows recent efforts, including verification processes for over 2,000 public workers.
Kwesi Agyei, the Controller and Accountant-General, stated that the CAGD is working with the SLTF. They will recover these debts through salary deductions. This aligns with existing laws governing public sector payroll. Mr. Agyei made this announcement on Thursday, June 18, 2026, during the SLTF's 20th-anniversary celebrations.
The planned deductions will improve compliance among former beneficiaries now in public service. These measures will boost loan recoveries, strengthening the Fund’s financial health. This ensures continued support for future generations of students. Dr. Saajida Shiraz, CEO of the SLTF, also noted a 50% increase in access to the regular student loan package. This improvement resulted from the timely release of funds from the Ghana Education Trust Fund (GETFund). The SLTF has disbursed over GHS 127 million to more than 46,000 students recently. Emmanuel Bedzrah, Board Chairman of GETFund, reaffirmed its commitment to timely funding.
Decision-makers and financial markets will closely watch the effectiveness of these deductions. Successful recovery could free up funds for other critical government expenditures. It could also influence future lending policies and financial management within state-backed institutions. This systematic approach to debt recovery signals a commitment to sound financial practices within Ghana’s public sector.
The Student Loan Trust Fund has been a significant source of educational financing for two decades. Strengthening its loan recovery mechanism is crucial for its continued ability to support tertiary students. This measure represents a significant step towards ensuring accountability and sustainability.