The Deputy Minister of Education (Tertiary), Samuel Okudzeto Ablakwa, has said the Student Loan Trust Fund remains viable to offer loans to students in colleges of education.
He said with the replacement of allowances previously enjoyed by students of such institutions with student loans – a move government said was necessary to banish the quota system of admission and increase intake – there had arisen fears that the fund would not be able to handle the explosion in applicants seeking loans to fund their education.
But Mr Ablakwa, who is also Member of Parliament (MP) for North Tongu, said in over a decade of the fund’s operation, government’s support and “prudent” financial management by the handlers of the fund had ensured that even more tertiary students, including 7,100 teacher trainees, had access to loans, while stating that prompt payment of such loans by beneficiary students after leaving school was also a reason for the fund’s viability.
“…I can say that, so far, in eleven years, we have not had any difficulty and the fund has not collapsed. I can say with all confidence that the board and management of the Student Loan Trust Fund, they are doing well. They are being financially prudent,” he said on Ghana Yensom on Accra100.5FM Monday May 30.
“So, there is no fear that there will be a time that there will be a collapse. Every year the government increases the allocation and repayment has also been very good. I can indicate to you that the repayment is even hitting 70 to 80 percent, which is very good, considering [student loan repayment] across the world, and Ghana is ranked very high in terms of repayment statistics.
“I can assure you that…even if all the trainees at the colleges of education indicate their preparedness to take the loan, we can sustain the fund.”
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