Education Minister mulls review of student loan interest rates 

Mr Haruna Iddrisu, the Minister of Education, has hinted of a possible review of the interest rate structure governing the Students Loan Trust Fund (SLTF). 

That, he explained, will make repayment fairer and more considerate of graduates’ employment realities. 

Speaking before the Public Accounts Committee (PAC) of Parliament on Monday, in Parliament House, Mr Iddrisu expressed concern about the current system, where graduates were burdened with compound interest on their loans despite struggling to find employment after school. 

 “A student gets a loan, and that student gets out of school without any job, and you are compounding interest for the student mathematically; there is no fairness in that,” he added. 

He, therefore, suggested a possible shift to a simple interest regime, emphasising the need to balance the fund’s sustainability with empathy for graduates facing unemployment.  

“I do not think it is fair that we compound interest when they do not have jobs,” he said. 

Meanwhile, the SLTF has expanded its scope to include students at the Law School, with the Minister announcing that “Ghana Student Loan Trust has enrolled students at the Law School. They can now proceed with the student loan task,” he said. 

The SLTF is also set to receive increased funding, from GH¢70 million to GH¢150 million in 2026, to expand access to higher education. 

Source: GNA 

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