Over 4,000 workers on gov’t payroll owe student loans—Controller and Accountant-General

The Controller and Accountant-General, Kwesi Agyei, has revealed that more than 4,000 public sector workers currently on the government payroll have outstanding student loan obligations owed to the Student Loan Trust Fund (SLTF), prompting plans to recover the debts through salary deductions.

According to Mr. Agyei, the Controller and Accountant-General’s Department (CAGD) is working closely with the Student Loan Trust Fund to implement a structured repayment mechanism aimed at improving loan recovery and ensuring the long-term sustainability of the student financing scheme.

He made the disclosure on Thursday, June 18, during the launch of activities marking the 20th anniversary of the Student Loan Trust Fund, where stakeholders reflected on the Fund’s achievements and discussed strategies to strengthen access to higher education financing.

Mr. Agyei explained that the collaboration between the CAGD and the SLTF has enabled authorities to identify thousands of beneficiaries who are currently employed in the public sector but have yet to fully repay their student loans.

“We have already identified over 4,000 on the government payroll through the collaboration with the Trust Fund. In the coming days, we will engage with the Trust Fund on the modalities of implementing these deductions. We envisage that this deduction will become one of the important statutory sanctions on their salaries,” he stated.

He noted that the proposed salary deductions are intended to improve compliance among loan beneficiaries who have completed their tertiary education and are now earning regular incomes through public sector employment.

According to him, effective loan recovery is essential for maintaining the revolving nature of the student loan scheme, which relies on repayments from past beneficiaries to support future students seeking financial assistance for their education.

The Controller and Accountant-General stressed that strengthening repayment systems would not only improve accountability but also help expand the Fund’s capacity to provide loans to a growing number of students across the country.

He added that the planned deductions would be implemented in accordance with existing legal and regulatory frameworks governing public sector payroll administration and debt recovery.

The announcement comes as the Student Loan Trust Fund continues efforts to enhance loan recovery rates and improve financial sustainability amid increasing demand for tertiary education financing.

Meanwhile, the Chief Executive Officer of the Student Loan Trust Fund, Dr. Saajida Shiraz, announced a significant expansion in access to student loans, revealing that the Fund has recorded a 50 percent increase in the number of beneficiaries accessing its regular loan package.

She attributed the improvement to the timely release of funds by the Ghana Education Trust Fund (GETFund), which has strengthened the Fund’s ability to meet growing demand from students across tertiary institutions.

According to Dr. Shiraz, the Student Loan Trust Fund has disbursed more than GH¢127 million to over 46,000 students and successfully fulfilled every eligible loan request received during the period under review.

“The support from GETFund has enabled us to expand access significantly and ensure that no qualified student who applied for assistance was left behind,” she indicated.

She noted that the achievement reflects the Fund’s commitment to reducing financial barriers to higher education and creating opportunities for more young people to pursue academic and professional aspirations.

Dr. Shiraz further emphasized that improving loan recovery remains critical to sustaining the programme and ensuring that future generations of students can continue to benefit from affordable educational financing.

Also addressing the anniversary event, Board Chairman of GETFund, Emmanuel Bedzrah, reaffirmed the Fund’s commitment to supporting tertiary education financing through the timely release of resources to the Student Loan Trust Fund.

He assured stakeholders that GETFund would continue collaborating with the SLTF to ensure students receive the financial support needed to complete their studies and contribute meaningfully to national development.

The Student Loan Trust Fund was established two decades ago to provide financial assistance to eligible tertiary students who may otherwise struggle to fund their education. Since its inception, the Fund has supported thousands of students across Ghana and remains a key pillar of the country’s higher education financing system.

As the Fund marks its 20th anniversary, stakeholders say strengthening loan recovery mechanisms, expanding access to financing and ensuring prudent management of resources will be crucial to safeguarding its future and enhancing educational opportunities for generations to come.