The Student Loan Trust Fund (SLTF) has warned beneficiaries who have completed school that carrying expensive mobile phones and using substantial data while refusing to repay their loans is unacceptable, urging graduates to honour their obligations regardless of employment status.

The Head of Repayment and Recovery at the Trust Fund, Rosemary Aryee, said the Fund does not accept claims of unemployment as a legitimate reason for default, noting that the lifestyle choices of many beneficiaries suggest they have the capacity to repay.

"We do know that some of the phones that our beneficiaries carry are more expensive than the loan amount that they are expected to pay, and so we don't take kindly to statements like, 'I do not work, I'm not working, so I will not pay my loan,'" she said.

Data usage and phone choices indicate ability to pay

Ms Aryee argued that the amount of data students use and the type of phones they carry are indications that they can pay their loans if they are genuinely committed to doing so.

"The amount of data the students use, the type of phones that students carry, are all indications that you can pay your loan if you really are set to pay your loan," she stated.

Formal employment not required

The Head of Repayment and Recovery also addressed the common excuse that beneficiaries are waiting for formal white-collar jobs before repaying their loans.

"We also like to educate: you don't need to be working in a bank or be formally employed. There are several informal activities that are happening, even online businesses are thriving, the students are undertaking," she said.

Ms Aryee used the opportunity to appeal to students to pay up their loans, warning that the longer repayment is delayed, the more interest accumulates.

"The longer you leave it, the more interest it accumulates," she cautioned.

Ensuring scheme sustainability

The Trust Fund has been stepping up recovery efforts in recent years to ensure the sustainability of the student loan scheme, which relies on repayments from past beneficiaries to fund loans for current students. Default rates have been a persistent challenge, threatening the long-term viability of the programme.

The Student Loan Trust Fund provides financing to qualified Ghanaian students pursuing tertiary education. Beneficiaries are expected to begin repayment after completing their programmes of study. The Fund has previously introduced measures including mobile money payment options and flexible repayment plans to make it easier for graduates to honour their obligations.