Disagreement over the implementation of Students Loan Protection Scheme

Accra, Feb. 9, GNA - Student groups on Tuesday dissented with member= s of the Board of Directors of the Students Loan Trust Fund (SLTF) over the=

implementation of the Students Loan Protection Scheme (SLPS). SLPS is an initiative of the SLTF to absorb the financial burden on guarantors and families that would result from default in loan payment in=

case of death or permanent disability of borrowers.

At a meeting in Accra the students contended that they did not know anything about the introduction of the scheme. They said after taking over from their predecessors, they had no handing over notes on the scheme and had been engaged over various discussions before the meeting.

"We are therefore at a loss over the swift implementation of the scheme being 'imposed' on us," they said. "Government has promised an increment in the Students Loan and were=

therefore expecting the increment first before anything else," they argue= d. Earlier they complained about the delay in distributing brochures o= n the scheme adding that at least "we could have read over and be able to a= sk question during the open forum".

STLF in a release issued to journalists at the meeting said "after consultation with student bodies in 2006 and 2007 agreed to establish SLP= S to protect loan beneficiaries, guarantors, families and the SLTF against default arising from death or total or permanent incapacitation of studen= t borrowers". The release disclosed that implementation of the SLPS would begin during the 2009/10 academic year when actual deduction would be made from=

the loan disbursed to students.

It informed the students that a contribution of 0.5 per cent of loa= n amounts would be deducted during the disbursement of the second tranche o= f loans in the 2009/10 academic year. The release urged students to contact SLTF desk for further clarification on the loan protection scheme adding "it is the firm belief= of SLTF that this initiative will ensure that the goal of sustaining the students' loan scheme is achieved". Student groups at the meeting were Ghana Union of Polytechnic Students, representatives from the University of Ghana, Legon, University= of Development Studies and Trans-African College