Beneficiaries of the Student Loan Trust Fund (SLTF) who have defaulted in their loan payment will soon face legal action.
This is according to managers of the fund.
The managers had earlier stated that the increase in the fund amount from 1,500 cedis to 3,00 cedis has led to an increase in demand for loans which has put a strain on the fund.
Speaking on the issue, CEO of the fund, Kweku Adjei Yeboah said fund beneficiaries must do well to pay back the loans or risk being dragged to the court.
“Former beneficiaries must live up to their moral and legal obligations by paying back the loans which gave them the opportunity to better their education and their lives”, he said.
Mr. Yeboah also called on employers to deduct the loan amount from their employees who are beneficiaries of the fund.
“Since the student’s loan is a senior loan, employers are obligated by law to deduct payments from their employees at source and pay to the Fund”,
“I’m therefore calling on employers to fulfill their obligation and caution employee beneficiaries to comply or risk legal action,” he warned.
He explained that the necessary steps have been taken to ensure that defaulters are brought to book.
“The fund has already through publication in the national media put defaulting borrowers on notice that action will soon be taken against them. The fund has an array of measures it can take against such borrowers including publication of names and pictures in the media and legal action”.
He made these comments at a ceremony to award GN Bank and ASA Savings and Loans Company for their dedicated commitment to meeting their obligations of facilitating the repayment of loans.