The Student Loan Trust Fund (SLTF) has issued a strong warning to loan beneficiaries who have completed their studies but continue to default on repayments, insisting that unemployment is not a valid excuse for failing to honour their obligations.
According to the Fund’s Head of Repayment and Recovery, Rosemary Aryee, many graduates who claim they cannot repay their loans often maintain lifestyles that suggest otherwise.
“We do know that some of the phones that our beneficiaries carry are more expensive than the loan amount that they are expected to pay,” she said.
“And so we don’t take kindly to statements like, ‘I do not work, I’m not working, so I will not pay my loan.'”
Expensive Phones and Data Usage Raise Concerns
Ms Aryee said the type of mobile phones used by many beneficiaries, as well as their spending on internet data, indicate that they have the means to make loan repayments if they prioritise them.
“The amount of data the students use, the type of phones that students carry, are all indications that you can pay your loan if you really are set to pay your loan,” she stated.
Her comments come as the Fund intensifies efforts to recover outstanding loans and improve compliance among graduates.
Repayment Not Limited to Formal Employment
Addressing the belief that repayment should only begin after securing a formal job, Ms Aryee stressed that beneficiaries do not need to work in banks, offices or other white-collar professions before paying back their loans.
“We also like to educate: you don’t need to be working in a bank or be formally employed,” she said.
“There are several informal activities that are happening. Even online businesses are thriving, and students are undertaking them.”
She encouraged beneficiaries earning income through small businesses, freelancing, online ventures or other informal work to begin making repayments rather than waiting for permanent employment.
Delayed Payments Increase Debt
Ms Aryee warned that postponing repayments could make the debt more difficult to settle over time because of accumulating interest.
“The longer you leave it, the more interest it accumulates,” she cautioned.
She urged beneficiaries to take advantage of available repayment options and begin servicing their loans as early as possible.
Sustainability of the Loan Scheme
The Student Loan Trust Fund relies heavily on repayments from former beneficiaries to finance loans for current and future students.
However, persistent loan defaults have posed a challenge to the long-term sustainability of the scheme.
To improve recovery rates, the Fund has introduced several measures in recent years, including mobile money payment platforms and flexible repayment arrangements designed to make it easier for graduates to meet their obligations.
The SLTF provides financial support to eligible Ghanaian students pursuing tertiary education. Beneficiaries are expected to begin repaying their loans after completing their studies, helping to ensure that future generations of students can also access financial assistance.
