The National Union of Ghana Students says it has achieved a breakthrough in its campaign for a reduction in the interest rate of the Students Loan Trust Fund from 4 percent to 2 percent.

It has therefore directed all first year students to complete the application forms for the new loan scheme.

The President of the Union, William Yamoah issued the directive at a news conference in Accra on Monday.

The Union had asked for the suspension of the implementation of the loan scheme last year because it believed the interest rate was too high.

The NUGS President says the Union has also been able to initiate new terms, which were not initially included.

He said the new scheme accommodates one guarantor as against three requested by the old scheme, and the new one also admits parents and guardians as adequate guarantors.