Student Loan Insurance To Be Introduced

The Student Loan Trust Fund is to introduce a student loan insurance scheme in order to relieve guarantors from defraying debt incurred by students, who could not repay their loans as a result of temporary disability after school.

Borrowers would, however, continue to be solely liable to pay the loan and the Trust would not compromise any attempts to skip payment, Mrs Kokui Adu, Trustee for the Fund said yesterday.
     
She was addressing student representatives at a briefing session on the new Student Loan, which would replace the Social Security and National Insurance Trust (SSNIT) student loan scheme.
     
The Loan Trust became operational last year and provided loans to 11,000 students in the 2006/2007 academic year.  Over 7,103 students, representing 63 per cent of continuing students have benefited this year, while almost 1,000 fresh students have also received the loans.
     
Mrs Adu said the Sltf had flexible repayment term, one guarantor and other revisions in the SSNIT loans that would enable students to have their loans on time to meet high standard of living on campuses.  She said the Trust had also introduced an online registration process and established campus offices to facilitate applications and provide first hand information to students.
     
Mr Kweku Tuoh Bombason, President of the National Union of Ghana Students (NUGS), expressed worry over delays in disbursing the loans to students. He said considering difficulties encountered by graduates in securing employment, there was the need to extend the grace period for repayment.