At the launch of the 20th anniversary celebrations for the Student Loan Trust Fund (SLTF), Controller and Accountant-General Kwesi Agyei made a significant revelation: nearly 4,000 public sector employees currently on the government payroll have outstanding student loan debts.
Addressing the assembled audience, Mr. Agyei explained that his department is now partnering with the SLTF to develop a more robust system for recovering these loans. The plan, he revealed, is to implement payroll deductions, ensuring that repayments are made directly from the salaries of beneficiaries who work in the public sector.
Mr. Agyei emphasized the importance of strengthening loan repayment mechanisms to safeguard the sustainability of the student loan scheme. “Ensuring that loans are repaid is the only way the Fund can continue to support future generations of students,” he noted, highlighting the revolving nature of the Fund.
According to Mr. Agyei, the partnership between the Controller and Accountant-General’s Department (CAGD) and the SLTF will make it easier to identify public sector workers who are beneficiaries of the student loan scheme, and to recover outstanding debts efficiently through the government payroll platform.
He further explained that, once all necessary legal and regulatory frameworks are in place, the loan repayments could become statutory deductions, just like PAYE taxes and SSNIT contributions. This, he said, will improve compliance and streamline the recovery process for the SLTF.
Discussions on the details of the arrangement, he disclosed, will soon begin between the CAGD and the Student Loan Trust Fund. Mr. Agyei expressed confidence that the initiative will not only strengthen loan recovery efforts, but also protect the integrity of the Fund and ensure that more students can continue to benefit from financial support for higher education.
Source: Apexnewsgh.com