By Jibril Abdul Mumuni, GNA
Accra, Nov. 10, GNA – The Government has halved the interest rate on student loans as part of a major overhaul of the Students Loan Trust Fund (SLTF), a key pillar of President John Dramani Mahama’s Resetting Agenda.
The drastic reduction, which sees the rate drop from 12 per cent to six per cent, headlines a series of reforms announced, aimed at making tertiary education more affordable and accessible.
A statement from Dr. Saajida Shiraz, the Chief Executive Officer, SLTF, confirmed that the new interest rate would be a simple interest of six per cent, applicable during the period of study and moratorium.
This change from the previous annual compound interest structure is expected to significantly reduce the repayment burden on graduates.
The reforms also introduced a new “Students Loan Plus” package, which would provide full fee coverage loans disbursed directly to tertiary institutions under the “No Fees Stress InInitiative, the statement said.
The amount for the regular loan, paid directly to students, have seen a 50 per cent increase.
Students can now access between GH¢2,250.00 and GH¢4,500.00 per academic year.
The statement said the application process had been simplified with the removal of the mandatory E-zwich requirement.
The Ghana Commercial Bank accounts for disbursement will now be created automatically for new applicants within the “No Fees Stress” portal.
The statement noted that those measures, undertaken through the Ministry of Education, were a clear demonstration of the government’s commitment to equitable access to inclusive tertiary education by lessening the financial strain on students and their families.
GNA
Edited by Agnes Boye-Doe