Students Loan Trust Fund to Commence Statutory Salary Deductions for Loan Recovery in August

The Students Loan Trust Fund (SLTF) is set to begin recovering outstanding loans through direct salary deductions for over 4,000 beneficiaries starting in August. This initiative follows a strategic partnership between the SLTF and the Controller and Accountant-General’s Department (CAGD) to streamline repayments for public sector employees. According to Dr. Saajida Shiraz, the acting Chief Executive Officer of the SLTF, the arrangements are in their final stages, marking a significant shift toward ensuring the fund's financial sustainability and maintaining it as a revolving resource for future students. Under the new arrangement, student loan repayments will be treated as statutory deductions, appearing on the payroll alongside Social Security and National Insurance Trust (SSNIT) contributions and Pay-As-You-Earn (PAYE) taxes. The Controller and Accountant-General, Kwasi Agyei, noted that these deductions will be prioritized following the mandatory SSNIT and PAYE requirements. While the initial phase focuses on public sector workers, the SLTF is also in discussions with the Registrar-General’s Department and the Ghana Revenue Authority (GRA) to facilitate similar collections from borrowers employed within the private sector. The move comes as part of broader reforms aimed at making the fund more robust and accessible. Dr. Shiraz emphasized that the SLTF is transitioning toward a model that relies less on direct government support and more on effective recovery strategies. To alleviate the financial burden on graduates, the fund has recently reduced interest rates, reinforcing its status as a social intervention rather than a purely commercial lending scheme. Future plans discussed with the Ministry of Education include the potential implementation of an income-contingent repayment model, which would adjust repayment amounts based on the borrower’s earnings level. Speaking at the 20th-anniversary celebration of the fund, stakeholders underscored the importance of collective responsibility in financing higher education. The SLTF remains committed to ensuring that financial barriers do not prevent Ghanaian students from accessing tertiary education. By institutionalizing these repayment mechanisms, the Fund hopes to secure the capital necessary to support the next generation of scholars, ensuring that the dream of higher education remains attainable for all regardless of their economic background.