Govt restructuring students loan scheme

Accra, Aug. 12, GNA - Government on Tuesday said it has initiated a process to restructure the student's loan scheme to eliminate its weaknesses.

Accordingly, the Ministry of Education, Youth and Sports has referred a report submitted by a Committee tasked to come out with modalities for the restructuring to a body comprising students, financial and insurance bodies and administrators of tertiary institutions for critical re-appraisal.

Mr Kwadwo Baah-Wiredu, Minister of Educaton, Youth and Sports announced the measures when he took his turn at the meet the press series in Accra.

He said, "as we continue with efforts to replace the present students loan scheme with a more effective and sustainable one, it is important that the SSNIT adopts a businesslike approach in getting the loans repaid".

He recounted the Education Loan Scheme of Norway, saying their loan works perfectly because beneficiaries appreciated the need to pay back loans contracted.

Mr Baah-Wiredu indicated that students could have access to multiple loan schemes if only they changed their attitude towards the repayment of loans that made them what they were.

"I must say that this negative behaviour is fast becoming a disincentive to private sector participation in the scheme," he said. On the impact of the devastating HIV/AIDS pandemic on the youth, Mr Baah-Wiredu said the Ministry had established an HIV/AIDS Secretariat to help minimise the incidence and impact of HIV/AIDS among learners and education employees.

He said the Ministry was in discussions with some sector ministries, companies and organisations on the possibility of "engaging school leavers in construction works, tree planting, organised mining activities, health care delivery and landscaping. "We are also encouraging such organisations to offer work-study, internship and excursion opportunities for the youth."