The Student Loan Trust Fund (SLTF) in Ghana: Explained

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The Student Loan Trust Fund (SLTF) plays a crucial role in financing higher education in Ghana. Established in December 2005 under the Trustee Incorporation Act 1962, Act 106, the SLTF aims to provide financial resources for the benefit of students and to promote national ideals enshrined in the 1992 Constitution.

Objectives of the Trust Fund

The objectives of the Trust Fund are:

  • To provide financial resources for the sound management of the Trust for the benefit of students.
  • To help promote and facilitate the national ideals enshrined in Article 25 and 38 of the 1992 Constitution.

For the purpose of achieving the objectives of the Trust Fund, monies from the Trust Fund shall be applied to the relevant activities that the Trustees of the Fund may determine, including, in particular:

  1. The provision of facilities to enhance the tertiary education to support students.
  2. The provision of moneys to support any other activities and programs for the promotion of relevant courses as determined by the Trustees, in consultation with the Minister.

Governance and Administration

The Students Loans Trust Fund is governed by a Board of Trustees that comprises distinguished individuals of relevant backgrounds. The members of the board are appointed by the President of the Republic. The day-to-day administration of the SLTF is headed by a CEO, assisted by a team of dedicated professionals. The SLTF also has Campus offices in major institutions.

Functions of Campus Offices:

  • Provide first stop for student inquiries.
  • Pickup and drop off points for Loan Application forms.
  • Loan Application verification for completeness of forms.
  • Liaise between the SLTF and the loan applicants.
  • Disseminate information to students in a timely manner.

Sources of Loanable Funds

The sources of loanable funds for SLTF include:

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  • Monies paid into the Trust Fund representing up to ten percent of all the inflows into the Ghana Education Trust Fund.
  • Voluntary contributions which will be tax deductible.
  • Mobilization of resources from Ghana’s international partners interested in the advancement of tertiary education.
  • Contributions from the corporate sector that shall be tax deductible up to the equivalent of 0.5% of the company’s actual profit before tax.

Loan Repayment

The Students Loan Trust Fund (SLTF) wishes to notify all borrowers of the fund that loan repayment can be made at any branch of the following partner banks nationwide:

  1. GHANA COMMERCIAL BANK: SMART PAY
  2. NATIONAL INVESTMENT BANK: SPECIAL SLTF PAY IN SLIP

Direct periodic payments to the SLTF by beneficiaries who are not employees of any organization.

The Challenge of Financing Higher Education

Student loans program is one of the most controversial phenomena in financing higher education in Ghana, but its importance as a cost sharing mechanism is incontestable. The paper outlines the new policy framework, critically looks at some implementation problems and provides some practical policy recommendations. The paper questions the mechanisms put in place to ensure the sustainability of the new policy? It concludes that a more efficient student loans scheme should strike the balance between lenders risk and borrowers aversion.

Application Information

2022/2023 Applications have been closed. Students will be informed when the 2023/2024 applications are opened.Before an applicant applies for the loan he/she will require the following in order to successfully apply.

Note: 2022/23 application will be closed on the 20th November 2023.

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Table 1: Key Aspects of the SLTF

Aspect Description
Establishment Established in December 2005 under the Trustee Incorporation Act 1962, Act 106.
Objectives Provide financial resources for students and promote national ideals.
Governance Governed by a Board of Trustees appointed by the President.
Administration Headed by a CEO and supported by dedicated professionals.
Funding Sources Ghana Education Trust Fund, voluntary contributions, international partners, corporate sector.

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