Friday, 19 June

4,000 public sector workers owe student loans; payroll deductions planned – CAGD

News
Controller and Accountant-General’s Department (CAGD)

The Controller and Accountant-General, Kwesi Agyei, has revealed that nearly 4,000 public sector employees currently on the government payroll have outstanding student loan debts.

Speaking at the launch of activities marking the 20th anniversary of the Student Loan Trust Fund (SLTF), Mr. Agyei said the Controller and Accountant-General’s Department (CAGD) is collaborating with the Fund to establish a framework for recovering the loans through payroll deductions.

He noted that strengthening loan repayment mechanisms is essential to preserving the sustainability of the student loan scheme and ensuring future beneficiaries continue to access financial support for higher education.

According to him, the partnership between the CAGD and the SLTF will provide a more efficient system for identifying loan beneficiaries employed in the public sector and facilitating repayment through the government payroll platform.

Mr. Agyei explained that, once the necessary legal and regulatory requirements are met, deductions could be integrated into the payroll system as statutory obligations to improve compliance and streamline the recovery process.

He disclosed that discussions will soon begin with the Student Loan Trust Fund to determine the modalities for implementing the arrangement.

The Controller and Accountant-General added that the proposed deductions would operate in a similar manner to existing mandatory payroll deductions, including PAYE and SSNIT contributions.

 

He expressed confidence that the initiative would strengthen loan recovery efforts, safeguard the revolving nature of the Fund, and support broader access to tertiary education for future generations of students.

Source: Classfmonline.com/Zita Okwang