Student Loan Trust Fund unveils major reforms under Mahama’s reset agenda

The Students Loan Trust Fund says it has rolled out sweeping reforms to expand access, increase loan amounts and ease repayment for tertiary students across Ghana.

In a statement issued on Thursday, the Fund said the measures follow a directive from President John Dramani Mahama for student loan policies to be revised to improve affordability, accessibility and equity in higher education. Dr Saajida Shiraz, Chief Executive Officer of SLTF, said the reforms represent “a decisive shift toward a fairer system that supports every eligible student.”

A key highlight is the introduction of the Students Loan Plus package, described as a core component of the No Fees Stress Initiative. According to the Fund, the new package provides tertiary students with full-fee coverage loans disbursed directly to institutions.

“Tertiary students can now apply for Students Loan Plus to enjoy complete fee coverage,” the statement noted, adding that the goal is to remove financial barriers that prevent qualified students from enrolling.

The reforms also include a significant boost in loan amounts for regular beneficiaries. The Fund said disbursements for regular student loans have been increased by 50 percent, raising the yearly loan range from GHC 2,250 to GHC 4,500.

“This increment is meant to match rising costs of education and reduce the financial strain on students,” the CEO stated.

Another major measure is a reduction in the prevailing interest rate on student loans. The statement confirmed that the rate has been cut from 12 percent annual compound interest to 6 percent simple interest during both the study period and the mandatory one-year moratorium.

According to SLTF, this adjustment will “offer borrowers a more manageable repayment experience.”

To improve efficiency and eliminate delays, the Fund has also introduced a streamlined application and disbursement process. The statement said the requirement for an E-zwich card has been removed, while GCB Bank accounts for disbursement will now be created automatically for applicants under the No Fees Stress Initiative. “The new digital processes will cut down processing time and improve convenience for students,” SLTF added.

Dr Shiraz reaffirmed the Fund’s commitment to promoting inclusive and equitable tertiary education financing. She said the reforms align with the broader national agenda to make higher education accessible to all students regardless of economic background.

The SLTF under the Mahama administration has been assigned a prominent role in the government’s education policy drive. The fund oversees the flagship No Fees Stress policy, a financial program in which the government absorbs the academic fees of first-year students in public universities and colleges of education nationwide.