Students loan beneficiaries to increase to 60 per cent

Chief Executive Officer of the Students Loan Trust Fund (SLTF), Nana Kwaku Agyei Yeboah

Chief Executive Officer of the Students Loan Trust Fund (SLTF), Nana Kwaku Agyei Yeboah

Beneficiaries of the students’ loan are expected to increase from 10 per cent to 60 per cent when the ‘no guarantor policy’ takes off this academic year.

Currently, only about 10 per cent of eligible students in public and private tertiary institutions benefit from the loans trust fund.

However, the Chief Executive Officer of the Students Loan Trust Fund (SLTF), Nana Kwaku Agyei Yeboah, has said a survey the Fund has conducted has shown that more students were keen to access the fund if the burden of getting guarantors was removed.

“On the average, about 10 per cent of eligible students apply for the loan. The current Guaranteed Scheme was also making it difficult for them to apply for the loan.

“But in preparation for the no guarantor policy, we did a survey and it shows that about 60 per cent of eligible students are likely to access the scheme, which is a huge jump from 10 per cent to 60 per cent,” the CEO of the SLTF, Nana Kwaku Agyei Yeboah told the Daily Graphic in an interview.

The no guarantor policy is a campaign promise of the ruling New Patriotic Party (NPP) during the 2020 electioneering. It is also captured in the party’s 2020 manifesto.

During the party’s manifesto launch on August 23, 2020, the Vice-President, Dr. Mahamudu Bawumia, said: “All tertiary students except teacher and nurse trainees who will be on allowances, all tertiary students will now be able to get the option to obtain a student loan without the requirement of a guarantor."

He explained that: "The current loan scheme asks for guarantors and you know a lot of people are not willing to put their pensions on line so the students are not able to access it. So you don’t need a guarantor; all you need is your national ID card (Ghana card) that is all

Without a guarantor, how do they get them to pay the money back? We are in Ghana and we know what our people can do. Ask MTN QuickLoan and they will tell you.

Why is the government risking this, I believe they have a plan on how they are going to get the money back , without guarantors seems too good to be true. This will help tho! Most of us cannot continue tertiary because of financial difficulties

Even with guarantors, the beneficiaries are not paying back. SLTF published their names and pictures in newspapers but to no avail. The system isn’t favorable so they don’t have the money to pay back after many years of completing school.

I wonder how the "no guarantor policy " of the student loan trust fund is going to help the trust fund itself in future. Even with the guarantor system, students are not repaying the loans after the complete school so how can you open another floodgate them to default loans.