By Ruth Serwaa Asare
Education Minister Haruna Iddrisu has signaled a potential review of the interest rate policy of the Students Loan Trust Fund (SLTF) to ensure repayment terms are fairer and more responsive to the employment challenges faced by graduates.
Appearing before the Public Accounts Committee on Monday, November 3, the Minister voiced concern over the current loan structure, which subjects unemployed graduates to compound interest on their loans despite their financial struggles after school.
He also disclosed that the scope of the Students Loan Trust Fund has now been broadened to include students at the Ghana School of Law. According to him, while the government remains determined to maintain the fund’s sustainability, it must also show compassion toward graduates who are yet to secure jobs after completing their studies.
“I am happy to announce that the Ghana Students 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 disabilities.
“A student gets a loan, and that student gets out of school without any 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 jeopardize the income security of those from whom the money is sourced. I do not think it is fair that we compound interest when they do not have jobs. But the Students Loan Fund is doing well,” he said.
Established to support students in accredited tertiary institutions, the SLTF is also expected to see its budget increase from GH¢70 million to GH¢150 million in 2026, in line with the government’s efforts to widen access to tertiary education.
