• About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV
Friday, December 8, 2023
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Opinion
  • Infographics
  • Listen To CitiFM
  • Watch Citi TV
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Opinion
  • Infographics
  • Listen To CitiFM
  • Watch Citi TV
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
No Result
View All Result

Over 55,000 defaulters owe Student Loan Trust Fund GHc75m

September 12, 2019
ShareShareShareShare

More than 55,000 people owe the Students Loan Trust Fund (SLTF) GH¢75 million, representing default in the repayment of the loans students took to cushion them while in school.

Out of the number, about 35,000 have made some form of payment, leaving more than 20,000 who have not paid anything at all, after the two-year grace period for repayment elapsed.

The debt standing in the names of those who have not paid anything at all stands at GH¢35 million.

With some of the debts dating as far back as 2012 from the first batch of beneficiaries who took the loan in 2006, the fund managers have warned the borrowers that they will begin to publish the names and pictures of the defaulters in the national dailies in the coming weeks.

The measure, according to the Chief Executive Officer (CEO) of the fund, Nana Kwaku Agyei Yeboah, was to improve inflow into the fund to satisfy the needs of the thousands of applicants expected this academic year.

He told the Daily Graphic that the recovery rate of the fund was currently 65 per cent.

Data from the fund indicated that 35 per cent (about 7,000) of borrowers who had not paid anything to the fund said they were unemployed.

However, Mr Yeboah said “the payment of the loan is not contingent on being employed. Even for those who are not working, the amount used in buying airtime alone could be saved to defray part of the loan”.

Projections

The fund has projected that it will cost about GH¢189 million to provide loans for the almost 50,000 tertiary students who are likely to apply for loans in the 2020/2021 academic year.

The estimated number of applicants represents 10 per cent of the annual tertiary enrolment, which is expected to hit 145,000 in the 2020/2021 academic year.

Those figures, Mr Yeboah said, made it necessary for borrowers to fulfil their obligation to the fund to ensure its sustainability, as it anticipated a rise in new applicants, especially brilliant, needy students, from next year.

Recovery trip

As part of its recovery plan, the fund managers recently visited the United States to engage Ghanaians in the Diaspora who had taken loans or guaranteed for students to make good their promise, while calling for voluntary contributions from them.

Mr Yeboah said the trip took the team to the Ghana Mission in New York, the Ghana Embassy in Washington, DC, as well as engagements with the Ghanaian community in churches, at African markets and on community radio stations, including the Sankofa, Unity, Highlife and Golden FM stations.

He said the Ghana Mission, for instance, bought into the idea and expressed interest in supporting the fund’s awareness creation on the need to pay back the loans on its agenda during townhall meetings.

The mission would also engage Ghanaians who visited its offices for passport renewal and application and other documents on the issue.

Mr Yeboah said it was a long-term strategy of the fund to wean itself from government support, but that could not be achieved next year, as its intermediate plan was to increase recovery and use its internally generated funds.

“We are talking to the Ministry of Finance, the Ghana Education Trust Fund (GETFund) and others for the timely release of funds into the fund. If we get the funds allocated to us released on time, it will minimise the stress. We can plan ahead and deal with the figures.

Fruits

The Senior Operations Manager in charge of the Repayments and Recovery Unit, Mr Justice Sarkodie, said although there was no database on those who took the loan and decided to relocate to the United States, through the campaign, a number of people showed up, indicating that they had taken the loan or guaranteed for some people.

“We met people who came out to ask questions about guaranteeing for people, and how they could get them to pay. We showed them how to push the borrowers to pay because if they don’t, the consequence will be on them,” he explained.

Engagement with employers

The Students Loan Trust Fund Act 2011, Act 820, enjoins employers to ascertain from employees who are beneficiaries of student loans about their status and report those who have not fully repaid their loans to the fund.

Employers are further mandated to withhold monthly instalments from the salaries of employees and remit same to the fund within 15 days after deduction.

Mr Sarkodie said the fund had flexible payment terms which included debtors paying as little as GH¢50 a month, adding that the fund had introduced payment platforms such as myghpay.com, mobile money, in addition to paying at partner banks, including the GCB Bank, the National Investment Bank, Ecobank, GT Bank and zonal offices of the trust in major tertiary institutions.

Source: graphic.com.gh
Tags: Ghana NewsLoan defaultersSTLFStudent Loan Trust Fund
Previous Post

Total Ghana rewards outstanding transporters and drivers

Next Post

Accra-Nsawam train derails during first movement on rehabilitated rail lines

Next Post

Accra-Nsawam train derails during first movement on rehabilitated rail lines

TOP STORIES

Bagbin proposes to lock Parliament at 10:00 am to crack down on lateness

December 8, 2023

ECG pays Sunon Asogli $30m out of $60m debt

December 8, 2023

Senya Bereku: Residents clash with military over disputed land

December 8, 2023
Load More
ADVERTISEMENT
Citinewsroom - Comprehensive News in Ghana

CitiNewsroom.com is Ghana's leading news website that delivers high quality innovative, alternative news that challenges the status quo.

Archives

Download App

Download

Download

  • About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV

© 2023 All Rights Reserved Citi Newsroom.

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Opinion
  • Infographics
  • Listen To CitiFM
  • Watch Citi TV
  • Videos

© 2023 All Rights Reserved Citi Newsroom.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT