The government’s recent decision, through the Students Loan Trust Fund (SLTF), to increase student loan amounts by 50 per cent while significantly reducing interest rates marks one of the most impactful reforms in the country’s higher education financing in recent years.
At a time when the cost of tertiary education continues to rise and household incomes remain under strain, this intervention is not only timely but visionary.
It reflects a government that is listening, responding and deliberately working to remove barriers that limit access to higher educational opportunities.
By increasing loan ranges from GH¢1,500–GH¢3,000 and GH¢2,250–GH¢4,500, and slashing the interest rate from 12 per cent compound to six per cent simple interest, the SLTF is making higher education more affordable for thousands of young people.
For many families, this will be the difference between a child dropping out, delaying tertiary education or progressing with confidence.
The removal of cumbersome application requirements such as mandatory E-zwich registration, together with the automation of bank accounts, further demonstrates a commitment to efficiency, equity and accessibility. The benefits to both parents and students are enormous.For students, the relief is obvious.
A larger loan amount means they can focus more on academic work and less on the constant anxiety of unpaid fees, unpurchased books or unmet basic needs.
For parents and guardians, many of whom juggle multiple financial pressures, this provides a crucial buffer.
It eases the burden of having to continuously borrow, sell assets or sacrifice essential expenses simply to keep their children and wards in school.
Research across several jurisdictions consistently shows that when students are relieved of the immediate financial weight of tertiary education, their academic performance improves, completion rates rise, and national human capital deepens.Ghana’s move aligns with these global lessons.
A student who does not have to worry about unpaid fees is a student far more capable of excelling, innovating and contributing meaningfully to national development.
While the facility has become more generous and conditions more favourable, the Daily Graphic wants to emphasise that a student loan is not free money.
The reduced interest rate should not lure students into borrowing unnecessarily.
Those who genuinely do not need the loan should be empathetic and refrain from taking it simply because it has become easier to access.
Doing so allows room for truly needy students to benefit and support the sustainability of the entire scheme.
This is an important act of social responsibility.
We propose that to ensure fairness, the government must continue to develop robust mechanisms to identify genuine needy students.
Such mechanisms can include household income verification through the Ghana Revenue Authority and social protection databases.
The SLTF should also consider linkages with LEAP and other social welfare registries.
Again, the Fund can adopt community-level validation for applicants from rural and deprived areas, while digital assessments using data from the National Identification Authority (NIA) can be adopted.
We must also look at setting up independent means-testing committees at tertiary institutions to help ensure that the facility does not disproportionately benefit those who already have adequate financial support.
The paper reminds those who will benefit from the scheme that responsibility must match privilege.
Graduates should demonstrate patriotism by repaying their loans faithfully and promptly.
Defaulting on repayment not only jeopardises the sustainability of the fund but also denies future generations access to the same opportunity.
It would be deeply irresponsible to benefit today and, through inaction, deprive others tomorrow.
A sustainable education financing system thrives only when beneficiaries honour their obligations.
Repayment will keep the fund revolving and allow it to expand rather than shrink under the weight of defaults.
The government deserves commendation for taking bold, thoughtful steps to prioritise education financing.
This initiative will expand opportunity, ease burdens, strengthen scholarship and help cultivate the next generation of skilled leaders.
But its success will depend equally on responsible borrowing, efficient targeting and patriotic repayment.
Together, government and students can build a fair, sustainable system: one that uplifts not only the present generation but countless others to come.
