Ghana’s government will start deducting student loan repayments from the salaries of over 4,000 public sector workers from July 2026. These workers have outstanding loan obligations to the Student Loan Trust Fund (SLTF). This direct deduction system aims to enhance the recovery of overdue payments.
The Student Loan Trust Fund (SLTF) and the Controller and Accountant-General's Department have agreed on this arrangement. Improving loan recovery is crucial for the scheme's long-term sustainability. Many public sector employees have not repaid their student loans, prompting this new measure.
This move is part of broader efforts to strengthen public financial management in Ghana. The government seeks to reduce its debt burden and increase revenue mobilization across various sectors. Efficient loan recovery mechanisms contribute to fiscal discipline and resource allocation for critical public services. Data from the Controller and Accountant-General previously indicated thousands of state employees defaulting on their student loans.
Dr. Saajida Shiraz, CEO of the SLTF, confirmed the deductions will begin in July 2026. She stated this collaboration with the Controller and Accountant-General's Department is key to improved recovery. Dr. Shiraz also highlighted the importance of repayments in supporting new students gaining access to higher education. The SLTF missed its 2025 loan recovery target, collecting GHS 90 million against a GHS 120 million goal. Over GHS 300 million was actually due from borrowers.
This initiative will significantly impact the financial health of the Student Loan Trust Fund. It will also serve as a precedent for other institutional partnerships aimed at bolstering recovery efforts. The SLTF is also discussing data-sharing with the Ghana Revenue Authority (GRA). This will help trace borrowers outside the public sector payroll system. Enhanced recovery means more funds become available for future students. Decision-makers will closely monitor the initial phases of these deductions to assess their overall effectiveness.