Guarantor policy contributed just 6 percent to loan recovery - SLTF CEO
The Students Loan Trust Fund says beneficiaries earn between 1500 and 3000 cedis.
The Chief Executive Officer of the Students Loan Trust Fund(STLF), Nana Kwaku Agyei Yeboah has indicated that the guarantor requirement for securing students loan contributed only six percent to recoveries made in 2019.
Read full articleThe recoveries were effected through collaboration with major stakeholders and constituents including the Social Security and National Insurance Trust (SSNIT), partner banks, the Controller and Accountant-General’s Department (CAGD) and employers in the public and private sector.
According to the boss of the STLF, his outfit gained 36.6 million cedis in loan recovery in the year 2020. However, the contribution from the guarantor system was marginal.
“Out of the 36 million cedis that we recovered, the guarantor system contributed about 6 percent to the loans that we retrieved. The only time that we go to the guarantor is when we figure out that he or she is going on pension.
“It is not like when you go to the guarantor the person gives you the pension pay to go and settle the loan. In most instances, they will find somebody to replace them or help us track the borrower,” he explained.
He further added that SSNIT reviewing its bulk payment to pensioners will equally impact the guarantor system hence the need to waive that requirement.
“From next year SSNIT is going to drop the bulk payment it makes to beneficiaries. We think the guarantor will commit the monthly money that SSNIT gives him or her to settle the borrowers' debt? No.”
Vice president Dr. Mahamudu Bawumia has promised that all tertiary students except those in teacher and nursing training institutions will be able to secure loans without a guarantor if President Nana Addo Dankwa Akufo-Addo is re-elected.
Dr Mahamudu Bawumia said the beneficiaries would only need their Ghana Card which will enable them to apply for loans to fund their education. He made these statements at the launch of the New Patriotic Party’s manifesto in Cape Coast.
The Student Loans Trust Fund (SLTF) was set up by government to give loans to Ghanaian tertiary students who are pursuing programmes in accredited tertiary institutions.
These students must be citizens who have gained admission to pursue undergraduate programmes only.
Recently, the Fund published the list of defaulters and declared July 2020 Repayment Awareness Month and is undertaking various activities nationwide.
