Employers of Student Loan Defaulters to be Prosecuted – SLTF
The Student Loan Trust Fund (SLTF) has issued a stern warning to employers who hire graduates who have defaulted on their student loans. According to the SLTF, such employers could face prosecution if they fail to ensure that their employees repay their loans as mandated by law.
The Student Loan Repayment Mandate
The SLTF was established to provide financial assistance to Ghanaian students pursuing tertiary education. Beneficiaries are expected to repay their loans within a specified period after completing their studies and securing employment. However, many graduates have failed to meet their repayment obligations, leading to significant financial losses for the fund.
Under the Students Loan Trust Fund Act (Act 820), employers are legally required to deduct loan repayments from the salaries of employees who benefited from the SLTF and remit the funds to the Trust. Failure to comply with this regulation constitutes an offense punishable by law.
SLTF’s Crackdown on Defaulters and Employers
The Chief Executive Officer of the SLTF, Nana Kwaku Agyei Yeboah, has emphasized that the fund will no longer tolerate non-compliance. He stated that employers who fail to deduct and remit loan repayments will be held accountable.
“We have noticed that some employers are not cooperating with the SLTF in recovering loans from defaulters. This is unacceptable, and we will take legal action against such organizations,” he warned.
The SLTF has collaborated with the Social Security and National Insurance Trust (SSNIT) and the Ghana Revenue Authority (GRA) to track down defaulters and their employers. Employers found guilty of non-compliance may face fines or other legal consequences.
Consequences for Defaulters
Graduates who default on their student loans risk being blacklisted by the Credit Reference Bureau, which could affect their ability to secure loans, mortgages, or other financial services in the future. Additionally, the SLTF may take legal action to recover the outstanding amounts.
The fund has also introduced flexible repayment plans to encourage defaulters to settle their debts without facing severe penalties. Graduates struggling to repay their loans are advised to contact the SLTF to negotiate a suitable repayment schedule.
Call for Employer Compliance
The SLTF has urged all employers, both in the public and private sectors, to comply with the law by ensuring that loan deductions are made and remitted promptly. Employers have been reminded that they play a crucial role in sustaining the student loan scheme, which enables more students to access higher education.
Conclusion
The SLTF’s decision to prosecute employers of student loan defaulters underscores the government’s commitment to recovering funds and ensuring the sustainability of the student loan program. Employers must take this directive seriously to avoid legal repercussions, while beneficiaries are encouraged to fulfill their repayment obligations to avoid penalties.
By enforcing these measures, the SLTF aims to secure funds for future students and maintain a functional educational financing system in Ghana.