Accra: The Government has announced a major overhaul of the Students Loan Trust Fund (SLTF), reducing the interest rate on student loans by half. This initiative is a crucial component of President John Dramani Mahama's Resetting Agenda, aiming to make tertiary education more affordable and accessible.
According to Ghana News Agency, the interest rate has been cut from 12 percent to six percent, transitioning from an annual compound interest structure to a simple interest rate applicable during the period of study and moratorium. This significant reduction is expected to ease the repayment burden on graduates.
The reforms also introduce a new 'Students Loan Plus' package, which offers full fee coverage loans disbursed directly to tertiary institutions under the 'No Fees Stress Initiative.' Additionally, the regular loan amount, provided directly to students, has been increased by 50 percent, allowing students to access between GHS2,250.00 and GHS4,500.00 per academic year.
Application processes have been simplified, with the elimination of the mandatory E-zwich requirement. New applicants will now have Ghana Commercial Bank accounts created automatically within the 'No Fees Stress' portal. These measures, implemented through the Ministry of Education, underscore the government's commitment to ensuring equitable access to inclusive tertiary education by reducing the financial burden on students and their families.