Government to Deduct Student Loan Repayments from Public Sector Workers' Salaries

Key Takeaways

• The government will start deducting student loan repayments from the salaries of over 4,000 public sector workers who have defaulted on their loans in July 2026.
• The measure aims to improve loan recovery and sustain the Student Loan Trust Fund (SLTF).
• The Fund has fallen short of its recovery target in 2025, collecting GH¢90 million against a target of GH¢120 million.

The Ghanaian government is set to implement a new measure aimed at improving student loan repayment rates. As of July 2026, the salaries of over 4,000 public sector workers who have defaulted on their loans will be deducted to recover the debt.

This move is part of efforts to improve loan recovery and sustain the Student Loan Trust Fund (SLTF), which provides financial assistance to tertiary students. The Fund's Chief Executive Officer, Dr Saajida Shiraz, announced the plan on Joy FM's Super Morning Show.

Background & Context

The Student Loan Trust Fund was established to provide financial assistance to Ghanaian students pursuing tertiary education. The Fund provides loans to students who are unable to finance their education through other means.

However, the Fund has faced challenges in recovering loans from borrowers. In 2025, the Fund fell short of its recovery target, collecting GH¢90 million against a target of GH¢120 million. This has raised concerns about the sustainability of the Fund.

The Fund's financial sustainability is crucial for its ability to provide loans to future students. When borrowers repay their loans, the Fund is able to use the funds to support other students.

Why This Matters

The new measure to deduct student loan repayments from public sector workers' salaries is expected to boost loan recovery and strengthen the Fund's financial sustainability. This will enable the Fund to expand access to student loans for more tertiary students.

The measure also highlights the government's commitment to improving student loan repayment rates. By implementing this measure, the government is taking steps to ensure that borrowers are held accountable for their loans.

The success of this measure will depend on the government's ability to effectively implement the salary deduction arrangement and ensure that borrowers comply with their repayment obligations.

Looking Ahead

The government's new measure is expected to have a significant impact on student loan repayment rates. However, the success of the measure will depend on several factors, including the government's ability to implement the salary deduction arrangement effectively and ensure borrower compliance.

The Fund has also begun discussions with the Ghana Revenue Authority (GRA) to establish a data-sharing system to track borrowers outside the public sector. This will enable the Fund to recover loans from borrowers who are not tied to employment in the public sector.

The government's commitment to improving student loan repayment rates is a positive step towards ensuring that the Fund is able to provide loans to future students. However, the government must continue to monitor the Fund's financial sustainability and take steps to address any challenges that arise.

Image Source: https://ghcampus.com/wp-content/uploads/2026/06/sltf-logo.jpg