Minister for Education, Hon. Haruna Iddrisu, has revealed that government is considering a review of the interest rate structure governing the Students Loan Trust Fund (SLTF) to make repayment fairer and more sensitive to the employment challenges faced by graduates.
Speaking before the Public Accounts Committee on Monday, November 3, Hon. Iddrisu expressed concern that many beneficiaries of the fund are compelled to repay their loans with compound interest, even when they are yet to secure employment after graduation. He described the situation as unfair and unsustainable, adding that government must demonstrate empathy toward graduates who are struggling to make ends meet.
He hinted that a return to a simple interest regime could be considered to reduce the burden on unemployed graduates while ensuring that the fund remains financially viable. “If a student leaves school without a job and continues to accumulate compound interest, there is no fairness in that,” he stated. “We must make repayment realistic but also protect the sustainability of the fund.”
The minister also announced that the SLTF, which provides financial assistance to students in accredited tertiary institutions, will receive a major boost in funding — from GH¢70 million to GH¢150 million in 2026. The increase is aimed at expanding access to higher education and supporting more students across the country.
In a significant development, Hon. Iddrisu confirmed that the fund has now been extended to include students of the Ghana School of Law, who can for the first time apply for student loans. He said the inclusion is part of government’s broader commitment to equitable access to education, including special support initiatives for persons with disabilities.
He reaffirmed that while government remains committed to maintaining the SLTF’s sustainability, reforms are necessary to ensure fairness, compassion, and inclusivity in Ghana’s education financing system.
