The Director of Finance of the Students Loan Trust Fund, Justice Wiafe Sarkodie, confirmed this during an exclusive interview in Accra.

"I can state unequivocally today that the legacy arrears component owed to us by GETFund, which has been a perennial challenge to our operations, has been fully liquidated," he said.

The director said that the clearance encompassed all financial obligations accrued from 2017 when the Akufo-Addo administration begun, right up to present date.

“This demonstrates the government's unwavering commitment to making tertiary education accessible to all citizens," he added.

Situation

The accumulated arrears was compounded by a long-standing statutory funding gap.

While the SLTF Act stipulates receipt of up to 10 per cent of inflows into GETFund to support student loans, receipts from GETFund over the years had often accounted for less than three per cent of GETFund inflows, according to internal SLTF data.

This meant the actual funds received were not only delayed, but were also far below the required level needed to meet growing students demand.

The chronic underfunding resulted in staggering annual disbursement shortfalls, leaving thousands of students without full financial support.

For example, SLTF's records shows that between the 2021/2022 and 2023/2024 academic years, the total unpaid loan amount stood at over GH¢ 244 million, with shortfalls of GH¢ 86.4 million for 2021/22; GH¢ 97.3 million for 2022/23, and GH¢ 60.4 million for 2023/24.

“The clearance of the liabilities, therefore, marks the end of the period of severe financial stress for the Fund, and provides a significant liquidity boost to SLTF, ensuring a stable and reliable stream of funding for student loans,” the director said. 

Significance

Mr Sarkodie further said that the injection of funds was crucial for the efficient and timely disbursement of loans, particularly as the Fund continued to implement progressive policies like the "No Guarantor" loan scheme.

"For students, this means an end to delays and uncertainty.

The financial challenges that often hampered the start of the academic year for beneficiaries due to cash flow issues are now largely mitigated.

“The government’s proactive approach, through the timely release of GETFund allocations, is directly strengthening the sustainability and impact of SLTF," he said.

The director commended the leadership of both the Ministry of Education and GETFund for prioritising such essential financial reconciliation.

The move is expected to cement the SLTF’s position to expand its reach and increase the amount disbursed per student, ultimately easing the financial burden on tertiary students across the country.