The Chief Executive Officer (CEO) of the Student Loan Trust Fund (SLTF), Nuhu Bayorbo Mahama, said the fund has released GH¢20 million for disbursement. This amount is for some 13,500 beneficiaries in tertiary institutions across the country.
The amount is to cater for qualified final-year and continuing students in the various tertiary institutions for the second semester of the current academic year.
With this disbursement, the amount of loans disbursed since January this year comes to GH¢60 million.
He said, “Last Friday, we were able to pay GH¢20 million to students in the various institutions. So, I can say that almost all the Level 400 students who are due have been sorted out. Unless somebody has issues with his/her Ezwich card or did not fill out the form correctly.”
Speaking to the daily graphic, Mr. Mahama said about GH¢15 million covered all the final-year students, with the rest going to the continuing students.
He hoped the organization would disburse funds to the remaining continuing students by December this year. He explained that about GH¢13 million of the money was recovered from debtors during the recovery month in August this year.
Mr. Mahama said the fund wanted to make the repayment month of August very relevant so that employers who had some debtors working with them would get them to pay.
He said the organization undertook various programs, including media interviews, engaging with employers, sending text messages, and writing letters, all during the repayment month to recoup some money.
On average, Mr. Mahama said, the trust fund mobilized between GH¢90,000 and GH¢100,000 a day during the period. He urged those still owing to settle their indebtedness with the SLTF to enable it to honor its obligations to other students.
The SLTF had targeted to recover GH¢80 million from debtors, a revision of last year’s GH¢75 million target.
“From January to date, we have recouped about GH¢54 million. We still have some GH¢12 million with the Controller and Accountant General’s Department (CAGD),” Mr. Mahama added.
“By the end of the year, we expect no less than GH¢20 million from Controller.”
Regarding the mode of repayment, Mr. Mahama said some debtors walked onto the premises of the SLTF to pay up. Others paid through mobile money. Those abroad used electronic money transfer platforms, he said.
“So this year, our target is to recoup GH¢80 million from our borrowers.” Mr. Mahama said the loan repayment was very important as it helped to build the credit score of those doing so.
Loan and Credit score
The CEO of SLTF, however, said those who did not pay would see their credit score drop, adding that “you cannot even go in for a facility because you are not creditworthy.”
“So if you are owing a student loan and you fail to repay, your credit score goes down.”
He said the trust fund knew everybody who owed because of the use of the Ghana Card.
“Currently, borrowers are around 280,000,” he disclosed.
Loan: “No Guarantor System”
He said the introduction of the “no guarantor system” had led to an increase in enrolment, having removed the barrier of finding guarantors.
“Since the inception of the ‘No guarantor system,’ the number has increased from 25,000 to 57,000 this year. First-time applicants were over 30,000,” he said.
In the case of teacher trainees, Mr. Mahama said the SLTF had paid GH¢60 million, which covered the allowances of 67,000 trainees.
He said 1,500 students were outstanding, who had challenges with their ezwich cards, among other issues. He said GH¢400 was given to each student per month.
