Accra: Mr Haruna Iddrisu, the Minister of Education, has indicated a potential review of the interest rate structure governing the Students Loan Trust Fund (SLTF). This consideration aims to ensure that the repayment of student loans is fairer and takes into account the employment challenges faced by graduates.
According to Ghana News Agency, Mr Iddrisu shared his concerns while addressing the Public Accounts Committee (PAC) of Parliament. He highlighted the burden that compound interest places on graduates who often struggle to secure employment after completing their education. This current system, he argued, lacks fairness as it compounds interest for graduates who have yet to find jobs.
Mr Iddrisu proposed a shift towards a simple interest regime, emphasizing the importance of balancing the fund’s sustainability with empathy for unemployed graduates. He stated, “I do not think it is fair that we compound interest when they do not have jobs.”
In addition to considering changes to the interest rate structure, the SLTF has broadened its scope to include students at the Law School. The Minister announced, “Ghana Student Loan Trust has enrolled students at the Law School. They can now proceed with the student loan task.”
To further support access to higher education, the SLTF is set to receive a significant increase in funding, with an allocation rising from GHS70 million to GHS150 million by 2026.