Both parties have promised to quash the guarantor system in acquisition of loans by students
Chief Executive Officer of the Students Loan Trust Fund (STLF) Nana Agyei Yeboah has said the Ghana Card will make it easier to track debtors of the Fund if the plan of the New Patriotic Party (NPP) and the National Democratic Congress (NDC) to scrap the guarantor system in the acquisition of the loans by the students comes to fruition.
Both parties have promised to quash the guarantor system in acquisition of loans by students from the STLF.
Vice President Dr Mahamudu Bawumia said during the launch of NPP’s manifesto document in Cape Coast ahead of the 2020 polls that the move is to ensure that all tertiary students are able to complete their education successfully.
Addressing the issue of how students will be tracked to pay back the loans as there will be no longer guarantors to hold liable in the event of failure to repay, Mr Agyei Yeboah said on TV3’s New Day Thursday, October 15 that the available Ghana Card will enable defaulters to be tracked.
He explained that the Ghana Card will contain all the contact information needed by STLF, hence it will not be difficult to trace them.
“The Ghana Card will have all your records. When you even go to Driver and Vehicle License Authority, we can see that you have taken a loan. It makes it simple to track since it will also have GPS and all.
“We know that the numbers have doubled but we are ready to support them. Since the President increased the loan capacity to 50%, it has made the Fund more appealing.”
When asked about the source of funds to cater for this, Mr Agyei said: “We don’t know yet where the money will come from for us to embark on supporting students but it’s possible. The Free Education, for example, is a policy that has come to pass because of the boldness and audacity of hope of the President, so I know he will see this one too through.”
The Fund is a government initiative to support students with loans to cater for their educational needs.
The loans secure are supposed to be paid back after students were done with school.
Students access loans with the help of guarantors.
