The acting Chief Executive Officer of the Students Loan Trust Fund (SLTF), Dr Saajida Shiraz, has announced that salary deductions for student loan beneficiaries will begin in August as part of efforts to improve loan recovery and ensure the Fund’s long-term sustainability.
Speaking on the Super Morning Show on June 19, Dr Shiraz said the Fund had received assurances that the necessary arrangements were almost complete.
“We are working through the modalities, but I have the assurance of the department that starting next month, we should be able to have deductions,” she said.
SLTF expands recovery efforts
Dr Shiraz revealed that the Fund is strengthening its recovery strategy through partnerships with key state institutions.
She said the SLTF has started discussions with the Ghana Revenue Authority (GRA) to develop a data-sharing arrangement that will help identify beneficiaries outside the public sector payroll system.
“We have started engagement with the Ghana Revenue Authority, and we are working on the modelling for a data-sharing arrangement to support the collection of loans from people who are not tied to public sector employment,” she explained.
The Fund is also collaborating with the Registrar-General’s Department to improve tracking of beneficiaries who own businesses or operate private companies.
“We have also engaged the Registrar-General’s Department and are exploring how that arrangement can help support our collections, especially for those in private business and those who own companies,” she added.
Focus on sustainability
According to Dr Shiraz, stronger loan recovery measures are necessary to keep the Fund financially viable.
She noted that the institution cannot depend indefinitely on government support to finance its operations.
“Twenty years after the establishment of the Fund, we should be looking at ways to ensure that it remains viable and sustainable,” she said.
Support for borrowers
Dr Shiraz stressed that the Fund remains committed to supporting students and graduates despite the renewed focus on loan recovery.
She pointed to recent reductions in interest charges as evidence of that commitment.
“We have reduced the interest burden on those taking loans, and that demonstrates that we are not only focused on collections,” she said.
She described student loans as a social intervention designed to improve access to higher education rather than a commercial lending product.
“We recognise that student loans are social loans, not commercial loans. The objective is to support access to education while ensuring the Fund remains sustainable,” she noted.
Income-linked repayment under consideration
Dr Shiraz also disclosed that discussions with the Minister for Education have explored the possibility of introducing an income-contingent repayment system.
Under such a model, loan repayments would be linked to a beneficiary’s income level or employment status.
“That would make the system more responsive to the realities graduates face,” she said.
The proposed reforms come as the SLTF seeks to improve loan recovery while maintaining support for students pursuing higher education.
