Cabinet approves 50 per cent increase in students' loans

Cabinet on Thursday approved a 50 per cent increase in loans to students in tertiary institutions for the 2000/2001 academic year.

A statement from the Ministry of Education in Accra on Friday said eligible students would receive 1.5 million cedis this academic year, up from one million cedis.

The statement said the Ministry has accordingly been requested by Cabinet to proceed with arrangements for the commencement of payment of the new amount next week.

The statement said Cabinet expressed "serious concern" about the low loan recovery rate and advised beneficiaries to endeavour to contribute towards the sustainability of the scheme by paying back.

The Minister of Education, Professor Christopher Ameyaw-Akumfi told a meeting with the leadership of the National Union of Ghana Students (NUGS) and Ghana National Union of Polytechnic Students (GNUPS) recently that the government was seriously considering an increase in the loans.