How can GH¢1,200 prevent a poor person from dropping out of tertiary? - Kofi Asare on meagre student loan

The establishment of the Student Loan Trust Fund (SLTF) was to support brilliant but needy students who cannot afford their tertiary education.

Inasmuch as the Fund has been fraught with several challenges such as beneficiaries' refusal to pay back the loans among others, it still carries out its mandate of giving loans to students.

However, the Executive Director for Africa Education Watch, Kofi Asare, has bemoaned the inadequacy of the monies given to students to fund their education.

According to him, the average amount of money expended on tertiary education costs GH¢15,000, yet only GH¢2,400 is given as an average loan to students by the Trust Fund.

Kofi Asare wondered how the GH¢1,200 [amount for a semester] would be able to cater for the needs of the poor in tertiary without dropping out of school.

In his view, the Student Loan Trust Fund is not a realistic financial buffer for students.

Speaking on TV3’s Ghana Tonight programme on Monday, February 19, 2024, Kofi Asare said, “The average loan is about 2,400 cedis; that is 1,200 cedis a semester. Ask yourself whether 1,200 cedis can prevent a poor person from dropping out of tertiary,” he said, adding that “especially when the cost of tertiary education averages GH¢15,000 a year for humanities and GH¢17,000 plus for sciences.”

Mr Asare said the funding architecture for the student loan has not been reviewed since the “no-guarantor” policy was introduced.

SA/NOQ