Samuel Ekow Sagoe, the President of the Graduate Students Association of Ghana (GRASAG) says he is concerned about the decision of the NPP government to initiate a policy that will scrape off the guarantor system in students loan.
Mr Sagoe says should this happen it will make it difficult for the Students Loan Trust Fund to recoup disbursed funds.
“The Secretariate for the Students loan is already struggling to recoup the loans they have given out loans and they have the leverage of relying on the guarantor’s pension to recoup some amount so if you remove the guarantor system then we are creating a problem for the Students Loan Trust Fund.”
Vice President Dr Mahamudu Bawumia during the NPP’s manifesto launch said they would initiate a policy that would see tertiary students access student loans without guarantors.
Over the years many have failed to access the loans because of the lack of guarantors and that has led to many dropping out or not being able to enter tertiary institutions.
Dr Bawumia further said the current problem with the student loans scheme is the issue with guarantors because lots of people do not want to put their pension schemes on the line and that has seen many students not being able to access the loans.
He added that when a student accesses the loan and completes school, repayment will be deferred, students will get one year grace period before they start paying.