The Minister of Education, Dr Yaw Osei Adutwum has said the government has approved the no guarantor policy.
According to him, students can now apply for loans without a guarantor.
He made this revelation at a meeting with the management of Kwame Nkrumah University of Science and Technology (KNUST), on the deferral of 6000 students.
This followed President Akufo-Addo's implementation of the ''no guarantor policy", which he endorsed and signed into law.
Dr Yaw Osei Adutwum said the action is part of the government's endeavor to improve access to education in the country.
"The good news is that President Nana Akufo Addo approved the establishment of what is known as the 'no guarantor policy; which is now the law of the land, allowing students to apply for loans without having to provide a guarantor", he stated.
The Minister also stated that the management of the Students Loan Trust Fund (SLTF) will effectively engage students who may require financial aid to pay for their academic fees.
For the time being, students will be required to provide their Ghana Cards in order to obtain loans.
The Minister said, research has shown that implementing this policy will result in a 60 percent increase in student loan demand.
"To fulfil its mandates, the SLTF has traditionally relied on funds from the GETFUND, the communications service tax, and loan recovery from borrowers.