CAGD Partners SLTF to Recover Student Loans Through Public Sector Payroll Deductions
Ghana's government is turning up the heat on public sector workers who haven't paid back their student loans. Kwesi Agyei, the Controller and Accountant-General, recently revealed that his outfit has flagged about 4,000 government employees who still owe the Student Loan Trust Fund (SLTF).
To get this money back, his office is teaming up with the SLTF to pull the outstanding balances directly from the workers' monthly salaries.
Speaking at the launch of the SLTF’s 20th-anniversary celebration, Agyei explained that the move is all about making sure the student loan system doesn't run dry for future generations. He noted that his team is currently ironing out the exact details of how these salary deductions will work, treating them as a standard, mandatory payroll deduction.
“We have already identified over 4,000 on the government payroll through the collaboration with the Trust Fund. In the coming days, we will engage with the Trust Fund on the modalities of implementing these deductions. We envisage that this deduction will become one of the important statutory sanctions on their salaries,” he added.
While the government is tightening the reins on debt collection, it is also making it easier for current students to get financial help. Dr. Saajida Shiraz, CEO of the SLTF, announced that the standard student loan package has been bumped up by 50 percent.
She credited this expansion to steady funding from the Ghana Education Trust Fund (GETFund), which has allowed the trust to pay out over GH¢127 million to more than 46,000 students—effectively clearing every single loan application they received.
Backing this up, GETFund's Board Chairman, Emmanuel Bedzrah, promised that his office will keep prioritizing these timely cash releases so that no student is left stranded.
Read:
Frim Pong
Comments ()