By Nadia Ntiamoah
President John Mahama government’s decision to significantly increase funding to the Students Loan Trust Fund (SLTF) is drawing mixed reactions, with questions emerging over the sustainability and transparency of the move.
The Minister for Education, Haruna Iddrisu on Friday announced a jump in allocations from GH¢70 million to GH¢150 million through the Ghana Education Trust Fund (GETFund), as part of the government’s new “No Fees Stress” policy aimed at easing tertiary education costs.
While the announcement has been hailed by many students and families struggling with financial access to higher education, others—including policy analysts—are questioning whether this increase represents real economic relief or inflated populism without reforms in how the funds are managed.
Background: Mounting Pressure to Support Tertiary Students
Over the past decade, the rising cost of tertiary education in Ghana has sparked growing demands for government intervention.
In the 2023/2024 academic year, approximately 100,000 students benefited from the SLTF.
However, thousands more were left out due to limited funds, bureaucratic delays, and inconsistencies in disbursement.
To address this, the Education Minister unveiled the “No Fees Stress” initiative during a policy launch on July 4, 2025.
He declared that the increased funding to the SLTF would provide expanded access to financial aid for both public and private tertiary students.
“Next year, the GETFund will double its allocation to the Students Loan Trust from 70 million to 150 million to support students who may want to access it further,” Mr. Iddrisu said at the event.
The GH¢80 million increment is expected to close the gap between the cost of higher education and the financial capacity of thousands of students.
But critics argue that without reforming how student loans are administered, simply increasing the allocation may only amplify inefficiencies.
Accountability Questions Linger
The announcement has rekindled public concerns about the opaque management of student loan funds. Past reports by education advocacy groups and the Auditor-General’s Department have raised red flags about mismanagement, non-repayment of loans, and poor monitoring of beneficiaries.
Several civil society organisations have therefore called for clarity on how the new funds will be tracked, distributed, and recovered.
Some fear that without a robust accountability framework, the increased allocation could be absorbed by administrative overheads or become subject to political manipulation.
Legislative Reforms on the Horizon
To respond to such concerns, Minister Iddrisu also announced a planned overhaul of Ghana’s scholarship system through a new legislative proposal—the Scholarship Authority Bill.
The bill, to be laid before Parliament next week, aims to address issues of nepotism and cronyism in scholarship awards, and establish a more merit- and needs-based system.
“I will, next week, on your behalf and in honour of one of your campaign policies, lay before Parliament the Scholarship Authority Bill to deal with the nepotism and cronyism that was associated with the scholarship award scheme,” he stated.
If passed, the bill would consolidate the country’s fragmented scholarship landscape under a centralized authority, promoting transparency and equitable access.
A Bold Promise or Political Grandstanding?
While the government has framed the SLTF increase as a landmark investment in the youth and future workforce, critics suggest it could be more about political optics than structural transformation.
With general elections on the horizon, such a high-profile promise may resonate with young voters, especially those in universities and colleges.
Some education experts have described the move as a populist announcement lacking in long-term vision.
