Gov’t releases  GHS20 Million for student loans

The government, through the Student Loan Trust Fund (SLTF), has released GHS20 million for the payment of loans to students in various private and public tertiary institutions across the country.

This funding, announced on Friday, June 21,  aims to benefit 10,243 students who have applied for loans to finance their education.

Mr. Nuhu Bayorbo Mahama, Chief Executive Officer (CEO) of SLTF, disclosed to the media that the trust fund has disbursed approximately GHS58 million to 54,658 students for the 2023/24 academic year. Out of this amount, GHS27 million was allocated to about 68,000 teacher trainees as allowances.

Mr. Mahama assured students that the government, through the Education Ministry and the SLTF, will continue to prioritize their needs to enhance their studies. He emphasized that the recent payment was intended to help students register and sit for their examinations.

The CEO also mentioned that the government had released funds in May to settle outstanding student loans and teacher training allowances. He highlighted that since the introduction of the No Guarantor Policy two years ago, the demand for student loans has increased significantly. This policy removed the previous requirement for students to secure guarantors for their loans.

Each beneficiary student is expected to receive between GHS1,500 and GHS3,000, depending on their individual needs. This financial support is a significant relief for many students who face difficulties in financing their education.

For decades, one major challenge confronting many tertiary students in Ghana was securing guarantors to access student loans. To address this issue, the Nana Addo Dankwa Akufo-Addo-led government launched the No Guarantor Policy in June 2022.