Students Loan Trust Fund Intensifies Crackdown on Loan Defaulters
The Students Loan Trust Fund (SLTF) has stepped up efforts to recover outstanding debts from borrowers who have failed to meet their repayment obligations. In recent weeks, the fund has publicly named and issued final warnings to hundreds of graduates, marking one of its most aggressive recovery drives in recent years.
Second Batch of Defaulters Published
On May 30, 2025, the SLTF published the names of over 100 loan defaulters in the Daily Graphic. This list included the full names of borrowers, their tertiary institutions, the year they completed school, the amounts owed (including interest), and the names of their guarantors.
The action followed a demand notice issued in March 2024 under Section 26 of the Students Loan Trust Fund Act 2011 (Amendment Act 1065, 2021), which gave borrowers one month to settle their debts or face legal consequences.
Final Demand Notice to 102 Defaulters
In its most recent move, the SLTF released a final demand notice on August 6, 2025, naming 102 defaulters. The notice warned that failure to repay within one month would lead to court action, resulting in automatic judgments and an additional 5% penalty imposed on both the borrower and their guarantor.
Graduates from top institutions such as the University of Ghana, Kwame Nkrumah University of Science and Technology (KNUST), and the University of Mines and Technology (UMaT) were among those listed. The highest recorded default was GH₵18,623.82, while the smallest was GH₵6,343.37.
Impact and Reaction
The SLTF’s decision to name and shame defaulters has sparked mixed reactions. While some support the move as a necessary measure to protect the sustainability of the student loan scheme, others question whether it might harm graduates’ reputations and job prospects.
Civil society organizations have also raised concerns about the funding and structure of the student loan system. Earlier this year, advocacy groups revealed that the scheme had received only GH₵53 million in funding, far short of the GH₵160 million initially promised. They warned that without adequate resources and reforms—such as pre-admission loans and guarantor-free access—the scheme’s ability to support students could be undermined.
Conclusion
The SLTF’s latest crackdown sends a clear message: student loan obligations are not to be taken lightly. Borrowers and their guarantors are being urged to settle their debts promptly to avoid legal action, additional penalties, and public exposure. As the debate continues over how to balance repayment enforcement with student support, the outcome of these measures will likely shape the future of tertiary education financing in Ghana.
