Minister of Education, Haruna Iddrisu, has hinted at plans by the government to review the current interest rate structure of the Students Loan Trust Fund (SLTF), describing the existing compound interest regime as unfair to unemployed graduates.
Appearing before the Public Accounts Committee on Monday, November 3, the Minister said the review is part of efforts to make student loan repayment more humane and equitable, particularly for graduates who are yet to secure employment.
“We are thinking of reviewing the interest rate regime of the Student Loan Trust. A student gets a loan, and that student gets out of school without a job, and you are compounding interest for the student mathematically; there is no fairness in that. So we may have to go back to the simple interest regime, but also not jeopardise the income security of those from whom the money is sourced,” he said.
Mr. Iddrisu emphasised that while the SLTF’s financial health is critical, the fund must not become a burden on graduates already struggling with unemployment.
“I do not think it is fair that we compound interest when they do not have jobs. But the Student Loan Fund is doing well,” he added.
In a related developoment, the Minister also disclosed that students of the Ghana School of Law have now been enrolled onto the Students Loan Trust Fund scheme — a development aimed at expanding access to tertiary education financing.
“I am happy to announce that Ghana Student Loan Trust has enrolled students at the Law School. They can now proceed with the student loan task. Previously, this was not done. The President announced it when he launched the opportunity and facility for persons with disability,” he said.
Mr. Iddrisu also revealed that the Ghana Education Trust Fund (GETFund) will increase its annual allocation to the SLTF from GH¢70 million to GH¢150 million beginning in 2026, to sustain the growing demand for financial assistance among tertiary students.
Source:Lovinghananews.com
