Akufo-Addo govt promises guarantor-free student loan scheme

The Akufo-Addo government has promised that it will scrap the guarantor system to allow all tertiary students access education on loan basis and pay later.

Addressing the governing New Patriotic Party’s 2020 manifesto launch in Cape Coast on Saturday, 22 August 2020, Vice President Dr Mahamudu Bawumia said: “If you look at Ghana, our gross tertiary is less than 17 per cent. So, if we are to catch and build the human capital, which will help us transform the economy, then we have to get more enrollment into the tertiary sectors”.

“One of the problems for students in getting enrollment and access is affordability - whether it is the enrollment into the public or private universities”, he noted.

“So, we have a major promise – a policy initiative which we say, all tertiary students except teacher and nurse trainees who will be on the allowance, will now be able to get the option to obtain a student loan without the requirement of the guarantor.

“The problem for many tertiary students is the current scheme asks for guarantors and a lot of people are not willing to put their pensions on the line so many are not able to access the student loan.

“So, you don’t need a guarantor and all you need is your national ID card. That’s all and then you will be able to access your loan and once you complete your education, repayment will be deferred after your tertiary education, you’ll get a one-year grace period after your national service, then you start paying,” Dr Bawumia explained.