- The Mahama-led government Reduces Student Loan Interest Rate By 50% and Increases Loan Amount By 50%.
- What this means is that, while students can now have more funds through the student loan scheme, the interest rate has also fallen in terms of rates as well as from compounding
The Students Loan Trust Fund (SLTF) has just unveiled the most significant student financing reforms in a generation, directly responding to President John Dramani Mahama’s sweeping ‘Reset Agenda’ directive. This is not merely an adjustment; it is a game-changing overhaul designed to dramatically enhance affordability, accessibility, and equity in higher education for every Ghanaian tertiary student.
The new policy package, dubbed the “No Fees Stress Initiative”, introduces four major reforms that will immediately impact the financial landscape for students nationwide.
1. Introducing: The Students Loan Plus
In a move set to eliminate major financial barriers, the SLTF is introducing the Student Loan Plus. This revolutionary component of the No Fees Stress Initiative will provide tertiary students with full fee coverage, with loan amounts disbursed directly to their institutions. This ensures that students, particularly those from low-income backgrounds, can focus entirely on their studies without the constant burden of fee deadlines. This is the ultimate tool for achieving equitable access to tertiary education in Ghana.
2. Loan Amounts Skyrocket by 50%!
Recognizing the biting effects of inflation, the loan amounts for the Regular Student Loan have been substantially increased by 50%. Loan disbursements, which go directly to students for maintenance and other expenses, now range from GHC 2,250.00 to GHC 4,500.00 per academic year. This significant hike—from a prior range of approximately GHC 1,500.00 to GHC 3,000.00—is a critical injection of financial muscle, finally aligning the loan values with the actual cost of living and studying in Ghana.
3. Interest Rate Crisis Averted: Slashed by Half!
Perhaps the most impactful relief for future graduates is the drastic Interest Rate Reduction. The prevailing annual compound interest rate of 12% is being replaced with a far more manageable 6% simple interest during the entire period of study and subsequent moratorium. This move drastically reduces the debt burden on graduates, promoting economic freedom faster and encouraging more students to access the scheme without fear of overwhelming repayment terms.
4. Application Process: Streamlined to a Single Click
In a massive technological upgrade, the cumbersome E-zwich requirement for loan application and disbursement has been eliminated. The process will now be simplified through the No Fees Stress portal. Crucially, GCB Bank accounts for loan disbursement will be created automatically for all new applicants, cutting out bureaucratic delays and making the entire application process seamless, fast, and digital-first.
READ: SLTF increases tertiary student loan amounts by 50% (¢2,250 to ¢4,500)
Signed by Dr. Saajida Shiraz, CEO of the Students Loan Trust Fund, this announcement solidifies the commitment to an affordable and inclusive tertiary education system in Ghana, championed under the President’s national Reset Agenda. These reforms are a powerful testament to prioritizing student welfare and national human capital development.