Student Loan Trust Fund increases students loan by 50%

The Students Loan Trust Fund (SLTF) has increased the loan amounts disbursed to regular students by 50 per cent.

Consequently, loan amounts now range from GH¢2,250 to GH¢4,500 per academic year.

It previously ranged from GH¢1,500 to GH¢3,000.

In addition, the SLTF has reduced the interest charged on loans.

Also, the prevailing interest rate on student loans has been reduced from 12 per cent annual compound interest to six per cent simple interest during period of study and the period of moratorium.

Reforms

The move is part of significant reforms introduced by the SLTF following President John Dramani Mahama's directive for loan amounts to be revised and for complementary measures to be undertaken to enhance affordability, accessibility, and equity.

As part of the reforms, the SLTF has streamlined application and disbursement processes for loan and  the E-zwich requirement for loan application is no longer mandated.

"GCB Bank accounts for disbursement will now be created automatically within the No Fees Stress portal for all new applicants," a release signed by the Chief Executive Officer, Dr Saajida Shiraz, indicated.

Loan Plus

It added the SLTF had also introduced the Students Loan Plus, a component of the No Fees Stress Initiative, which provides tertiary students with full fee coverage loans disbursed directly to tertiary institutions.

"Under the auspices of the Ministry of Education, SLTF remains committed to enhancing equitable access to affordable and inclusive tertiary education in Ghana," it said.

The reforms which take effect from the 2025/2026 academic year, form part of President Mahama's reset agenda for the country.