The Controller and Accountant-General’s Department (CAGD) is preparing to begin salary deductions for more than 4,000 public sector employees who previously benefitted from the Student Loan Scheme as part of efforts to enhance loan recovery and ensure the long-term viability of the programme.
The initiative is being undertaken in collaboration with the Student Loan Trust Fund (SLTF) and forms part of broader measures aimed at improving repayment rates and expanding access to financial assistance for tertiary students across Ghana.
The announcement was made during an engagement with tertiary students in Accra, where officials underscored the critical role of loan recovery in sustaining the revolving fund that supports thousands of students each year.
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Speaking at the event, the Chief Executive Officer of the Student Loan Trust Fund, Dr Saajida Shiraz, highlighted the fund’s progress in broadening access to higher education financing.
She disclosed that the Trust has disbursed GHS127 million in enhanced student loans to 46,679 students enrolled in both public and private tertiary institutions nationwide.
Dr Shiraz noted that the intervention has significantly reduced the delays in loan disbursement that previously affected beneficiaries and weakened confidence in the scheme.
She emphasised that while the Trust remains committed to supporting students, effective recovery mechanisms are necessary to sustain the programme and ensure that future generations continue to benefit.
The Controller and Accountant-General, Kwasi Agyei, revealed that through collaboration between the CAGD and the Student Loan Trust Fund, more than 4,000 former beneficiaries currently employed within the public sector have been identified on the government payroll.
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According to him, discussions are ongoing to finalise the framework for implementing the salary deduction system. He indicated that the deductions will be introduced once both institutions agree on the operational procedures.
Mr Agyei further suggested that student loan repayments could eventually be incorporated as a statutory salary deduction, similar to existing deductions such as Social Security and National Insurance Trust (SSNIT) contributions and Pay-As-You-Earn (PAYE) taxes.
Stakeholders at the engagement described the Student Loan Scheme as a vital intervention that has enabled thousands of students to access tertiary education despite financial constraints.
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They stressed that timely repayment by former beneficiaries is essential to preserving the revolving nature of the fund and ensuring that future students can continue to access financial support.
Officials emphasised that the objective of the recovery exercise extends beyond debt collection, noting that it is intended to safeguard a programme that has transformed the educational prospects of many young Ghanaians.
The Student Loan Trust Fund also disclosed that more than half of the loans disbursed under its recent interventions have benefitted persons living with disabilities, reflecting the Fund’s commitment to promoting equitable and inclusive access to higher education.