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🇬🇭 Ghana /Economy & Trade

Your phone is more expensive than your loan – Student Loan Trust Fund tells defaulters

From Daily Graphic · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Student Loan Trust Fund (SLTF) in Ghana has urged graduates to repay their loans, regardless of employment status.
  • The SLTF stated that expensive phone ownership and high data usage suggest beneficiaries have the capacity to pay, dismissing unemployment as a sole excuse.
  • The fund emphasized that loan repayments are crucial for the sustainability of the scheme, which finances current students.

Graduates who have completed their studies are being urged by Ghana's Student Loan Trust Fund (SLTF) to honor their loan obligations, with the fund pushing back against unemployment claims.

We do know that some of the phones that our beneficiaries carry are more expensive than the loan amount that they are expected to pay, and so we don't take kindly to statements like, 'I do not work, I'm not working, so I will not pay my loan.'

— Rosemary AryeeThe Head of Repayment and Recovery at the SLTF explained why the fund dismisses unemployment as a sole reason for non-payment.

Rosemary Aryee, Head of Repayment and Recovery at the SLTF, highlighted that many beneficiaries possess expensive mobile phones and consume significant amounts of data, indicating a financial capacity to repay their loans. She stated that the fund "does not take kindly to statements like, 'I do not work, I'm not working, so I will not pay my loan.'"

The amount of data the students use, the type of phones that students carry, are all indications that you can pay your loan if you really are set to pay your loan.

— Rosemary AryeeAryee elaborated on how beneficiaries' spending habits suggest an ability to repay their loans.

Aryee pointed out that the lifestyle choices of beneficiaries, including their data usage and the types of phones they own, serve as indicators that they can afford to repay if committed. She also clarified that formal employment is not a prerequisite for repayment, noting the prevalence of informal businesses and online ventures that offer income opportunities.

We also like to educate: you don't need to be working in a bank or be formally employed. There are several informal activities that are happening, even online businesses are thriving, the students are undertaking.

— Rosemary AryeeAryee addressed the common excuse of waiting for formal employment before repaying loans.

The SLTF is intensifying its recovery efforts to ensure the financial sustainability of the student loan program. Default rates have posed a significant challenge, threatening the scheme's long-term viability. The fund provides financing to Ghanaian students pursuing tertiary education, with repayment expected after graduation. To facilitate repayment, the SLTF has previously introduced measures such as mobile money options and flexible payment plans.

The longer you leave it, the more interest it accumulates.

— Rosemary AryeeAryee cautioned about the financial consequences of delaying loan repayment.
DistantNews Editorial

Originally published by Daily Graphic. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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