Students Loan

STUDENTS LOAN

INTRODUCTION

The Students Loan Scheme was established in January 1988 under PNDC Law 276. The Scheme is administered by the Social Security & National Insurance Trust on behalf of the Government of Ghana. 

WHAT IS THE STUDENTS LOAN SCHEME?

The Students Loan Scheme is a financial arrangement under which Ghanaian Students enrolled and pursuing approved courses in tertiary institutions in Ghana are granted loans to assist with the financing of their education. 

Purpose of the Loan
Essentially, the loan is meant to supplement the students own private resources, such as the financial support parents already give them. 

The Loan Levels
The loan level to be granted in each academic year is determined by Government in consultation with Tertiary Students' Representatives and SSNIT. 

WHO QUALIFIES

Ghanaian students offered admission in
  • approved tertiary institutions.
  • pursuing approved courses.

APROVED TERTIARY INSTITUTIONS

The Ministry of Education from time to time determines and approves Tertiary Institutions to be covered under the Scheme. These currently include the Universities, Polytechnics and some Specialised Institutions. 

WHERE TO GET HELP OR ADVICE 

Leaflets can be made available to you on request. 
For further information, please contact us (link).

THE LAW​

STUDENTS LOANS SCHEME LAW, 1992 PNDC L. 276 

Arrangement of Sections
  1. Establishment of Students Loan Scheme
  2. Application of Scheme
  3. Application for Loan
  4. Amount of Loan
  5. Interest on Loan
  6. Period for repayment of Loan
  7. Purpose of Loan
  8. Award of scholarship and other grant
  9. Responsibility for Scheme
  10. Committees
  11. Loan agreement and guarantee
  12. Registration of a borrower and repayment by contributors
  13. Repayments for loan by non-contributors to the Social Security and Pensions Scheme
  14. Particulars to be supplied by and on behalf of borrowers
  15. Failure to repay the loan
  16. Offences
  17. Offence by body of persons
  18. Regulations
  19. Interpretation
  20. Repeals and amendments
  21. Commencement
 
In pursuance of the Provisional National Defence Council (Establishment) Proclamation 1981, this Law is hereby made
 

Establishment of Students Loan Scheme​

1. There is hereby established a Students Loan Scheme (hereafter referred to in this Law as "the Scheme.").​​
 

Application of Scheme​

2. (1) The Scheme shall apply to every Ghanaian who is enrolled as a full-time student on a course of studies in any public tertiary institution in Ghana (hereafter referred to in this Law as "an Institution").
 
2. (2) Notwithstanding subsection (1) of this section, the Scheme may be made applicable to such Ghanaian part-time students in public tertiary institutions as may be determined by the Secretary.
 
2. (3) A student to whom this Law applies may, on admission into an institution or where he is already on admission, until he completes his course of studies or leaves the institution, apply under section 3 of this Law for a loan for the purposes specified in section 7 of this Law as if the student were a person of full age, whether or not he is in fact of full age.
 

​Application for loan​

3. (1) An application for a loan under this Law shall be made to the Social Security and National Insurance Trust (hereafter in this Law referred to as "the Trust")​.
 
3. (2) The application shall be in such form and shall be accompanied by such documents as the Trust shall determine.
 

​Amount of loan​​

4. The amount of loan to be granted to a student (hereafter in this Law referred to as "a borrower") under the Scheme shall be such sum as may from time to time be determined by the Trust with the approval of the Secretary.​
 

Interest on loan​

5. The rate of interest chargeable on a loan granted under section 4 of this Law shall be at the average treasury bill rate for the year except that the borrower shall pay as interest three per cent per annum on the reducing balance of the loan and the Government shall pay the remaining interest.​
 

Period for repayment of loan​

6. (1) The period for the repayment of a loan granted under this Law shall in respect of the different categories of courses of studies be determined by the Trust but shall not exceed ten years.​
 
6. (2) A borrower shall commence repayment of the loan as soon as he is engaged in employment after the completion of his course of studies.​
 
6. (3) For the purpose of the repayment of the recovery of a loan granted under this Law and the interest on it, a borrower shall be treated in every respect as if he were a person of full age.
 

Purpose of loan​

7. A borrower shall apply the loan to defray personal expenses including the cost of boarding, lodging books, equipment and for such other purposes as may be necessary for his course of studies​.
 

Award of scholarship and other grants​

8. (1) The Government may in each year award Scholarships' bursaries and other grants to Ghanaian students in tertiary institutions in Ghana.​​​
 
8. (2) Notwithstanding any other provision in this Law to the contrary, no person shall be eligible to apply for a loan under this Law where before his admission into a public tertiary institution or during his course of studies in the institution, he obtains a scholarship, an award, a bursary or any grant from the Government of Ghana or from any other public funded source and the amount of the Scholarship award, bursary or grant is equal to or exceeds the maximum loan payable under the Scheme at the time of the grant of the scholarship, award, bursary or grant.​
 

​Responsibility fo​r scheme​

9. (1) The Trust shall be responsible for the operation and administration of the Scheme.
 
9. (2) For the purposes of subsection (1) of this section the Trust ma​y​​
  1. grant all loans under the Scheme;
  2. recover all loans in accordance with the provisions of this Law or any other enactment;
  3. enter into contracts in respect of the loans;
  4. take legal action to recover the loans;
  5. do all things necessary for or incidental to the purposes of this Law.​
 

​Committees​

10. The Trust may, for the effective operation and administration of the Scheme in consultation with the Secretary, appoint committees comprising members of the Trust, non-members or both and may assign to the committees such functions as it considers necessary for the effective implementation of this Law.​
 

Loan agreement and guarantee​

11. (1) No loan shall be granted to a borrower under this Law unless the borrower enters into an agreement with the Trust for repayment of the loan in accordance with the provisions of this Law and the loan is guaranteed by three persons who are contributors to the Social Security Pensions Scheme or such persons as the Trust may approve.​
 
11. (2) Any agreement entered into or any other instrument executed under this section shall be exempted from stamp duty.
 

​Registration of a borrower and r​epayment by contributors​

12. (1) Where a borrower is granted a loan under this Law he shall be registered by the Trust and shall be given a provisional social security number and a membership certificate unless the borrower has already been registered with the Trust.
 
12. (2) Where a borrower is employed on the completion of this course of studies and becomes a contributor to the Trust the provisional social security number issued under subsection (1) shall become his permanent Social Security Pensions Scheme number under the Social Security Law, 1991 (P.N.D.C.L. 247).
 
12. (3) The social security contribution made to the Trust on behalf of the registered borrower shall be applied to repay the loan unless the loan is otherwise repaid.
 
12. (4) The repayment of a loan shall be by monthly deductions.
 
12. (5) The protection against attachment of contribution provided under section 31 of the Social Security Law, 1991 (P.N.D.C.L. 247) shall not apply to a borrower who has not completed the repayment of a loan granted under this Law or to the guarantors of the borrower.
 
12. (6) Notwithstanding any provision to the contrary in the Social Security contribution is applied to repay a loan under this Law shall be excluded from the minimum contribution period qualification for the payment of benefits provided under section 35 of the Social Security Law, 1991 (P.N.D.C.L. 247)​
 

Repayments of loan by non-contributors to the Social Security and Pensions Scheme

13. (1) The repayment of loans granted under this Law to a borrower who is not a contributor to the Social Security and Pensions Scheme (hereafter in this Law referred to as a "non-contributor") shall be effected by deduction monthly from the remuneration of the non-contributor
  1. by his employer where the non-contributor is not employed and
  2. where the non-contributor is self-employed by the non-contributor himself
 
13. (2) The deductions referred to in subsection (1) shall be remitted to the Trust within fifteen days after the deduction is made.
 
13. (3) If any non-contributor fails to pay any sum due and payable under the Scheme, the Trust may take legal proceedings to recover it.
 
13. (4) Notwithstanding anything in this Law or in any agreement, where a non-contributor without lawful excuse (proof of which shall be on him) falls in arrears with instalments of repayments for more than six consecutive months, the whole or the reminder of the loan shall become due and payable and the Trust may take legal action to recover it.
 
13. (5) Without prejudice to the other provisions of this section, and without prejudice to any criminal penalty that may be imposed, any employer who is required to deduct any sum from the remuneration of a non-contributor and to pay the sum to the Trust under this section may be sued by the Trust for the recovery from him of any sums which he has failed to deduct and pay.
 
13. (6) The rights conferred on the Trust by this section does not derogate from any other rights of the Trust.​
 

Particulars to be supplied by and on behalf of borrowers​

14. (1) The National Service Secretariat, the Public services Commission, the Ghana education Service and every similar employing body shall, as soon as practicable, furnish the Trust with particulars of the posting of any student who has been granted loan under the Scheme until the Trust notifies the body that borrower has completed repayment of the loan.
 
14. (2) It is the duty of a borrower to notify the Trust in writing not later than one month after he first becomes employed or after he subsequently changes his employment and until the loan is duly repaid, of the name and business address of his employer, if any, the business and residential address of the borrower, the borrowers salary and also such other particulars as the Trust may reasonably request.
 
14. (3) Except where the borrower is self-employed, he shall also notify his employer in writing of his obligation in respect of the loan.
 
14. (4) Every employer shall, within twenty-one days after receipt of the notification submit to the Trust the name and address of the employer, the name and salary of the borrower and the date of commencement of the borrower's employment with the employer.
 
14. (5) The Trust may be writing request an employer or any person (including a borrower) to give information in respect of the borrower which the Trust reasonably requires for the purpose of ensuring recovery of a loan granted under the Scheme and the employer or other person shall comply with the request.​
 

Failure to repay the loan

15. A borrower who
  1. fails to obtain employment on completion of his course of studies or
  2. leaves the institution without obtaining a qualification or
  3. dies before repayment of the loan shall remain indebted to the Trust to the extent of any unpaid loan and the Trust may take such legal proceedings, as it considers necessary to recover the loan.​
 

Offenses

16. Any person who
  1. fails to deduct contribution and pay it to the Trust contrary to subsections (1) and (2) of section 14
  2. fails to give a notification required under this Law or
  3. fails to supply or supplies any information required of him under this Law which he knows to be false or which he has no reason to believe to be true, commits an offence and is liable on summary conviction to a fine not exceeding 500,000.00 cedis.​
 

Offense by body of persons

17. (1) Where an offence under section 16 of this Law is committed by a body of persons then
  1. in the case of a body corporate, every director or manager of the body and the secretary to the body shall also be deemed to be guilty of that offence; or
  2. In the case of a partnership, every partner shall also be deemed to be guilty of the offence.
 
17. (2) No person shall be deemed to be guilty of an offence by virtue of this section if he proves that the offence was committed without his consent or connivance and that he exercised all due care and diligence to prevent the commission of the offence, having regard to all the circumstances.​
 

Regulations

18. The Secretary may in consultation with the Trust by legislative instrument make such regulations as may be necessary for the effective implementation of this Law.
 

Interpretation

19. (1) In this Law unless the context otherwise requires
  • ​​​​"Borrower" means a person who has obtained a loan under the scheme any part of which or interest on which for the time being remains unpaid.​​
  • "Full age" means the age of twenty-one years or more.
  • ​​"Public tertiary institution" means
    (a) universities or university colleges
    (b) polytechnics
    (c) diploma award Teacher Training Colleges and
    ​(d) all post General Certificate of Education or post Senior School institutions in Ghana financed from state funds
  • ​​"Secretary" means the P.N.D.C. Secretary responsible for Higher Education.
  • "Student" includes a student of any public tertiary institution in Ghana but does not include any student who is on paid study leave from his employment.
 
19. (2) In this Law, any reference to employment of one person by another includes any relationship whereby a person engages as such, for a commission or allowance, the services of a commission, agent or any other person who habitually retails the goods of any other person in consideration for a commission or allowance or who habitually canvasses for or solicits customers for any other person in consideration for a commission or allowance, and the words "employer" and "remuneration" shall be construed accordingly.
 
20. (1) The University Students Credit Scheme Decree, 1975 (N.R.C.D. 356) and the University Students Credit Scheme (Amendment) Law, 1986 (P.N.D.C.L. 155) are hereby repealed.
 
20. (2) Notwithstanding the repeal of the enactments specified in subsection (1) of this section, any loan granted under the repealed enactments which remains unpaid shall be repaid in accordance with the terms of payment agreed upon under that enactments and shall be recovered from the borrower in accordance with the provisions of the repealed enactments.
 
21. This Law shall be deemed to have come into force on the 1st of January, 1998.​
 
Made this 20th January 1992.
 
FLT-LT. JERRY JOHN RAWLINGS
Chairman of the Provisional National Defence Council

Date of Gazette notification: 27th March 1992.

APPLICATION PROCESS

WHO QUALIFIES 

​Ghanaian students offered admission in
  • approved tertiary institutions
  • pursuing approved courses

APPROVED TERTIARY INSTITUTIONS 

The Ministry of Education from time to time determines and approves Tertiary Institutions to be covered under the Scheme. These currently include the Universities, Polytechnics and some Specialised Institutions.
 

THE PROCESS 

​Collection of Loan Application Documents 
The Loan Application Documents could be obtained from the nearest SSNIT District Office. Newly admitted students are required to produce Admission Letters; while continuing students applying for the first time or otherwise will be required to produce valid Student Identity Cards. Applicants are also required to produce valid Social Security Numbers before the Documents could be collected

Requirements
  • Valid Social Security Number

​All Loan applicants are expected to possess valid Social Security Numbers. Prospective students without Social Security Numbers are required to contact the nearest SSNIT District Office with evidence of birth (eg. Birth/Baptismal Certificate) to be issued with Social Security Numbers.

  • Guarantors Endorsement

Three (3) guarantors shall be required to endorse (sign and thumbprint) the duly completed loan documents. The thumb-printing shall be done at the nearest SSNIT District Office during working hours. Guarantors and the respective students must personally know each other.

  • Active Bank Account

Loan applicants shall be required to operate an active bank account with any bank of their choice around their campuses and indicate their valid account numbers on their loan application forms.

  • Institutional Endorsement

Appropriate authorities of the respective institutions, (as indicated on the application form) shall authenticate the completed application form with name, signature and stamp.

  • Passport-sized Photographs

First time applicants shall be required to attach two (2) duly endorsed recent passport-sized photographs, to the completed application form before submission.

​SUBMISSION OF COMPLETED APPLICATION FORM 

Each applicant is required to submit all duly completed Loan Application Documents to designated SSNIT District Offices assigned to their respective Institutions not later than two (2)months after the academic year has begun.

LOAN DISBURSEMENT AND REPAYMENT

LOAN DISBURSEMENT

The loans are disbursed through the respective bank accounts of students as indicated on the application forms. SSNIT DOES NOT make direct cash payment to students under the Scheme. 
 

REPAYMENT OF LOAN

Introduction

Repayment of the loan shall be made through any SSNIT District Office. The indebtedness of each borrower payable to SSNIT shall be the principal loan and the students portion of the interest on the loan. The Government pays the remaining portion of interest on the loan which is the difference between the average Treasury Bill Rate for the year, and the students portion. 
 

Repayment Options

The borrower could repay the principal loan together with the interest by the following means
  • Cash repayment (outright or instalment agreeable to SSNIT)
  • Mandate to employer to deduct at source and pay to SSNIT
  • Social Security contributions
  • Deductions from Social Security benefits of a borrower and/or guarantor
  • Refund from Scholarships and Bursaries

ANNUAL DISBURSEMENTS SINCE INCEPTION

Academic Year

Amt ¢m

No. Paid

Loan Level 
¢

Interest Rate (students)

1988/1989            

407.60

8,138

50,000.00

3%

1989/1990         

858.60

12,483

60,000.00

3%

1990/1991          

898.90

13,492

72,000.00

3%

1991/1992          

985.50

15,656

80,000.00

3%

1992/1993          

2,199.30

16,302

150,000.00

3%

1993/1994          

3,556.00

18,644

200,000.00

3%

1994/1995          

7,575.60

23,053

350,000.00

3%

1995/1996          

6,959.70

28,202

420,000.00

6%

1996/1997         

16,853.90

30,213

600,000.00

6%

1997/1998          

24,264.88

37,226

700,000.00

6%

1998/1999         

31,836.82

42,501

800,000.00

6%

1999/2000          

44,812.40

48,356

1,000,000.00

6%

2000/2001          

69,174.79

50,580

1,500,000.00

10%

2001/2002         

78,751.71

54,876

1,500,000.00

10%

2002/2003          

108,258.00

55,933

2,000,000.00

10%

2003/2004          

127,436.24

52,503

2,500,000.00

10%

2004/2005        

154,360.98

44,254

3,500,000.00

10%

 

 

 

 

 

TOTAL    

679,190.92

552,412.00

 



LOAN LEVELS SINCE INCEPTION

Academic Year 

Loan Level ¢

Interest Rate(Students)

1988/89

50,000.00 

3%

1989/90

60,000.00

3%

1990/91

72,000.00

3%

1991/92

80,000.00

3%

1992/93

150,000.00

3%

1993/94

200,000.00

3%

1994/95

525,000.00(350,000.00+175,000.00)

6%

1995/96

350,000.00

6%

1996/97

600,000.00

6%

1997/98

700,000.00

6%

1998/99

800,000.00

6%

1999/2000

1,000,000.00

6%

2000/01

1,500,000.00

10%

2001/02

1,500,000.00

10%

2002/03

2,000,000.00

10%

2003/04

2,500,000.00

10%

2004/05

3,500,000.00

10%

THE BORROWER AND GUARANTOR

BORROWERS RESPONSIBILITIES

  • The Social Security numbers allotted to borrowers are to be presented to their employers on engagement. Borrowers are required to submit these numbers to their employers anytime they change jobs.
  • It is illegal to acquire or attempt to acquire an additional Social Security number.
  • Until the Loan is fully repaid, it is the borrowers duty to furnish the Trust with the following
    • A written notice of employment not later than one month after he/she first becomes employed;
    • The borrowers residential and postal addresses;
    • Subsequent changes in employment; and
    • Name and business address of his/her employer.
  • The borrower shall also notify his employer (except where he/she is self-employed) in writing of his/her obligation in respect of the loan.

EMPLOYER RESPONSIBILITIES

Every employer shall submit to the Trust within twenty-one (21) days after receipt of notification from a newly-engaged graduate beneficiary, the name, Social Security number and salary of the borrower as well as his/her date of commencement of employment with the employer.

 

NON-CONTRIBUTING BORROWER

A non-contributor shall repay the loan by outright payment or instalment basis agreeable to SSNIT.

 

PENTAL ACTION UNDER PNDCL 276

  • If any borrower fails to pay any sum due and payable under the Scheme, the Trust may take legal proceedings to recover it.
  • Notwithstanding anything in the Law or in any agreement, where a non-contributor without lawful excuses (proof of which will be on him/her) falls in arrears with instalments of repayments for more than six consecutive months, the whole or the remainder of the loan shall become due and payable and the Trust may take legal action to recover it.
  • Any employer who is required to deduct any sum from the remuneration of a non-contributor and pay the sum to the Trust, shall be sued by the Trust for the recovery from him/her of any sums which he/she has failed to deduct and pay.

NON-EXEMPT STATUS OF BORROWERS

Any borrower who either
  • Fails to obtain employment on completion of his/her course of study, or
  • Leaves the institution without obtaining a qualification, or
  • Dies before repayment of the loan,
shall remain indebted to the Trust to the extent of any unpaid loan and the Trust may take such legal proceedings as it considers necessary to recover the loan.

GUARANTORS TO NOTE

A Students Loan Guarantor must
  • Be a contributor to the Social Security Scheme and must have contributed for not less than five (5) years.
  • Know the student he/she guarantees for very well.
  • Ensure that all students guaranteed for have repaid their loans or made satisfactory arrangements for settlement of the loans prior to applying for any benefit under the Social Security Scheme.
  • Not guarantee for a student if he/she (the guarantor) is a borrower who has not completed repayment.

CAUTION !!!

Under no circumstance should a student do any or all of the following
  1. Complete the portion of the loan application form reserved for guarantors.
  2. Thumbprint for the guarantors.
  3. Act as a guarantor for any student applicant.
  4. Re-register for an additional Social Security Number. 

SANCTIONS

Any student caught in any of the above acts will have his/her application rejected and will be debarred from receiving any subsequent loan and/or be subjected to prosecution.

STUDENTS LOAN APPLICATION RULES

DOs

  1. Newly admitted students are required to produce Admission Letters for the collection of Loan Application Documents from the nearest SSNIT District Office.
  2. Continuing Students applying for the first time  will produce valid Student identity Cards to collect loan application  Documents.
  3. Applicants are also required to produce valid Social Security Numbers before the Loan Documents are collected.
  4. Prospective Students Loan Applicants without Social Security Numbers are to call at the nearest SSNIT District Office to register and obtain a social security number before submitting the loan documents for processing.
  5. The Social Security number must be correctly stated on the Loan Application Documents.
  6. Three (3) guarantors shall be required to endorse (sign and thumbprint) the duly completed loan documents.
  7. Loan Applicant and Guarantors thumbprint must e taken at the nearest SSNIT District Office.
  8. Each of the guarantors should have contributed for not less than five years to the Social Security Pension Scheme
  9. Loan applicants shall operate active bank account with any bank of their choice preferably around their compuses.
  10. Valid personal account numbers should be quoted on the Loan Application Documents.
  11. Student Identification Number (ID Number) must be quoted accurately, as appearing on Student ID Card, on the loan application documents.
  12. First time applicants shall be required to attach two (2) duly endorsed recently taken passport-size photographs to the completed application documents before submission.
  13. Duly completed loan application documents should be endorsed by the School's authorities.
  14. Duly Completed Loan Application Documents should be submitted to designated SSNIT District Offices not later than two (2) months after the academic year has begun.
  15. Each applicant/borrower's name should be on the school list sent from the school authorities to SSNIT. Omitted applicant names from the school list will not be processed.
  16. A Students Loan beneficiary on employment should inform SSNIT within one month of employment and arrange for the repayment of the loan.

DON'Ts

  1. Do not  use any other  bank account except your own bonafide bank account number.
  2. Do not quote a closed bank account number.
  3. No applicant should use any other applicant's school identity number.
  4. Do not quote a wrong Social Security Number.
  5. Do not use any member's social security number for another person when looking for a guarantor.
  6. Do not take your thumbprint or Guarantor's thumbprint at any other place apart from a SSNIT Office.
  7. Do not use any guarantor who does not qualify to guarantee (Criteria: minimum contribution of 60 months - 5 years and the maximum guarantorship for any one guarantor is two (2).​

LIST OF APPROVED BENEFICIARY INSTITUTIONS

UNIVERSITIES - PUBLIC

  1. UNIVERSITY OF GHANA
  2. UNIVERSITY OF GHANA MEDICAL SCHOOL
  3. GHANA LAW SCHOOL
  4. KWAME NKRUMAH UNIVERSITY OF SCIENCE & TECHNOLOGY
  5. WESTERN UNIVERSITY COLLEGE
  6. UNIVERSITY OF CAPE COAST
  7. UNIVERSITY COLLEGE OF EDUCATION - WINNEBA
  8. UNIVERSITY COLLEGE OF EDUCATION - KUMASI
  9. UNIVERSITY COLLEGE OF EDUCATION - MAMPONG
  10. UNIVERSITY OF DEVELOPMENT STUDIES

UNIVERSITIES - PRIVATE

  1. CENTRAL UNIVERSITY COLLEGE
  2. METHODIST UNIVERSITY COLLEGE
  3. VALLY VIEW UNIVERSITY
  4. ISLAMIC UNIVERSITY COLLEGE
  5. CATHOLIC UNIVERSITY COLLEGE OF GHANA
  6. ALL NATIONS UNIVERSITY COLLEGE
  7. WISCONSIN UNIVERSITY COLLEGE
  8. ASHESI UNIVERSITY
  9. PRESBYTERIAN UNIVERSITY COLLEGE

POLYTECHNICS

  1. ACCRA POLYTECHNIC
  2. KUMASI POLYTECHNIC
  3. TAKORADI POLYTECHNIC
  4. KOFORIDUA POLYTECHNIC
  5. CAPE COAST POLYTECHNIC
  6. SUNYANI POLYTECHNIC
  7. HO POLYTECHNIC
  8. TAMALE POLYTECHNIC
  9. BOLGATANGA POLYTECHNIC
  10. WA POLYTECHNIC

OTHERS

  1. COLLEGE OF RENEWABLE NATURAL RESOURCES
  2. NATIONAL FILM  TELEVISION INSTITUTE
  3. SCHOOL OF TRANSLATORS
  4. GHANA INSTITUTE OF JOURNALISM
  5. INSTITUTE OF PROFESSIONAL STUDIES
  6. REGIONAL MARITIME ACADEMY
  7. INSTITUTE OF MANAGEMENT STUDIES - KUMASI
  8. INSTITUTE OF MANAGEMENT STUDIES - ACCRA
  9. ACADEMY OF BUSINESS ADMINISTRATION