The Education Minister, Dr Yaw Osei Adutwum, has revealed that tertiary students can henceforth apply for loans without a guarantor.
This follows the introduction of the ‘no guarantor policy’ which has been approved and passed into law by President Nana Akufo-Addo.
Speaking at a meeting with the management of the Kwame Nkrumah University of Science and Technology (KNUST) over the deferral of some 6,000 students, the Bosomtwe lawmaker said the move forms part of the government’s efforts of enhancing access to education in the country.
“The good news is that Nana Akufo-Addo gave the approval for the establishment of what is called the ‘no guarantor policy’ which is now the law of the land, which means students can apply for loans to be given the money without a guarantor,” he said.
He added that the Students’ Loan Trust Fund (SLTF) management will effectively engage students who may need financial support to pay for their academic fees.
Currently, students will be required to produce their Ghana Card to access loans.
According to Dr Adutwum, studies have shown that the implementation of this policy would lead to a 60% increase in demand for student loans.
“Traditionally, the SLTF has relied on funding from the GETFUND, the communications service tax and recovery of loans from borrowers to execute its mandate.
“With the increased demand for student loans, the major challenge of this Board will be to explore new funding sources to meet the needs of Ghanaian students,” he said at the inauguration of the new Board for the SLTF last year.