The government will from July 2026 begin deducting student loan repayments directly from the salaries of more than 4,000 public sector workers who have defaulted on their loans.
The move, announced by the Chief Executive Officer of the Student Loan Trust Fund (SLTF), Dr Saajida Shiraz, is part of efforts to improve loan recovery and sustain the scheme.
“We are working through the modalities, but I have the assurance of the department that starting July 2026, we should be able to have deductions from them,” she said on Joy FM’s Super Morning Show.
The arrangement follows collaboration with the Controller and Accountant-General’s Department, which revealed that thousands of workers on the government payroll have failed to repay loans they received from the Fund.
Dr Shiraz said recovering the loans is critical to maintaining the Fund and supporting future students.
“The sustainability of the Fund is important because when you pay back your student loan, we are able to help other students benefit from it,” she explained.
She disclosed that the Fund fell short of its recovery target in 2025, collecting GH¢90 million against a target of GH¢120 million, despite more than GH¢300 million being due.
According to her, the salary deduction arrangement is the first of several measures to improve repayment compliance.
The SLTF has also begun discussions with the Ghana Revenue Authority (GRA) to establish a data-sharing system to track borrowers outside the public sector.
“We are working on a data-sharing arrangement, which would help us collect repayments from people who are not tied to employment in the public sector,” she said.
The Fund expects the new measures to boost loan recovery, strengthen its financial sustainability, and expand access to student loans for more tertiary students.
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