The Government Must Cut Down Repayment Interest on Student Loans and Stop Interest Accrual for Unemployed Graduates – Anthony Cobbinah, EAI
Educate Africa Institute (EAI) applauds the Government of Ghana for its continuous support in the form of student loans for tertiary students. The Student Loan Trust Fund (SLTF), established in 2005, provides financial assistance to students pursuing tertiary education in accredited institutions across the country. This initiative serves, but is not limited to, the following purposes:
a. Providing financial support to needy and brilliant students.
b. Promoting equitable access to tertiary education.
c. Reducing the financial burden on students and their families.
d. Encouraging students to pursue higher education, regardless of their financial background.
While we commend the government for its continued commitment to these objectives, it is crucial to highlight concerns regarding the loan repayment policies.
Loan repayment is expected to commence after graduation. Though the government has introduced a flexible payment plan, repayment remains a significant challenge for many graduates who lack start-up capital to establish businesses or struggle to secure employment in both the private and public sectors.
Having engaged with graduates facing genuine financial difficulties, Educate Africa Institute (EAI) calls on the government to implement proper measures to either halt the accumulation of interest on student loans for unemployed graduates or provide interest-free loans to help them establish businesses, allowing them to clear their debts. Student loans should not become a source of stress and financial hardship for graduates simply because they remain unemployed after school.
We hope the government will revisit the current repayment structure and consider the plight of unemployed graduates who relied on the Student Loan Trust Fund to finance their education.
Signed,
William Boadi
Executive Director, EAI
Educationist, Political Analyst, and Social Worker
Published by,
Anthony Cobbinah
Director of Quality Assurance and Advocacy, EAI
EAI: EDUCATION AND SOCIAL JUSTICE.