Gov’t diverting Students Loan into paying fat salaries of appointees – TEIN UCC alleges

The Tertiary Education Institutions Network of NDC (TEIN-UCC) has alleged, that government has diverted monies meant to pay students their loans into paying salaries of its ‘overbloated’ government hence gave the Students Loan Trust Fund seven days to pay the students loan or face the wrath of the tertiary student.

In a press conference addressed by the President of the association Monday, May 20, 2019, Crispin Wienaa, the youth group narrated the ordeals of the students’ loan beneficiaries and how the current norm of delay in disbursement of the loan does not inure to the benefit of the tertiary student.

The group alleges “that monies earmarked by SSNIT to pay students’ loan beneficiaries have been misapplied to fund projects of government. We challenge government to come clear on it”.

The group added “If the students loan fund has been used to pay salaries and allowances of the obese government, let the tertiary student know you do not care about them anymore. On the other hand, if the students’ loan fund has not been diverted, then pay the loan beneficiaries today”.

They also requested President Akufo-Addo to sack the current CEO and the other five government appointees on the board of trustees of the students’ loan trust fund.

“I want to draw President Akufo-Addo’s attention to the incompetence of the CEO and the other five of his appointees on the Board of Trustees of the SLTF. They are only excellent in giving excuses. Simply sack them! They have not lived up to expectations. They have punished the poor tertiary student enough. It is only fair for President Akufo-Addo to sack those appointees to reaffirm his commitment to the welfare of the tertiary student. If President Akufo-Addo does not sack these appointees in seven days, then it will confirm the rumours that his government actually misapplied the students’ loan fund into paying salaries and allowance of the obese government, hence making the SLTF bankrupt.”

The group however recounted the good old days when students’ loan beneficiaries used to receive their loan disbursement one week before the semester resumes and called on President Akufo-Addo to meet such standards.

“It is common knowledge that the students’ loan beneficiaries used to receive their loan disbursement earlier during former President John Dramani Mahama’s administration, at least, one clear week before every semester begins. We simply want President Akufo-Addo to adhere to such simple standards”, they emphasized.

Below is the full statement

JOINT PRESS STATEMENT BY THE UNIVERSITY OF CAPE TERTIARY EDUCATION INSTITUTIONS NETWORK OF NDC(TEIN-UCC) AND THE AMAMOMA BRANCH OF THE NATIONAL DEMOCRATIC CONGRESS ON THE DELAY IN THE DISBURSEMENT OF STUDENTS’ LOAN FOR THE SECOND SEMESTER OF THE 2018/2019 ACADEMIC YEAR

Ladies and gentlemen of the press, I bring you warm greetings from the intellectual wing of the National Democratic Congress, TEIN-UCC. Your presence here today is a confirmation of your commitment to the democracy of mother Ghana. We are particularly happy for your interest in the welfare of the tertiary student. We are grateful to you for honouring our invitation.
Ladies and gentlemen, the unprecedented delay in the disbursement of the students’ loan by the SLTF is the reason we are here today. But what is the SLTF? The Student Loan Trust Fund was established in December 2005 under the Trustee Incorporation Act 1962 Act 106 however amended to Student Loan Trust Fund Act, Act 820 in 2011. This Act is to provide financial resources to students of tertiary institutions, to promote and facilitate the national ideals enshrined in article 25 which concern the right to education and article 38 of the 1992 constitution. The law further provides that, in the establishment of the fund, the fund must inure to the benefit and welfare of students of accredited tertiary institutions pursing accredited programs. In effect, the application and disbursement of the student loan is a right that the central government must enforce for her citizenry. The fund is to serve as a source of financial support to enable students of accredited tertiary institutions to pursue their programs without any financial difficulty.
Uses of the Fund.

The uses of the fund according to Section 31 of Act 820 are that; a borrower shall apply the loan granted from the fund to defray personal expenses including fees, the cost of boarding, lodging, books, equipment and for other purposes that may be necessary for the borrower’s course of studies.

Sources of The Fund

The sources of money for the Trust Fund are; money paid into the Trust Fund representing up to ten percent of the inflows into the Ghana Education Trust Fund, loans from Social Security and National Insurance Trust, money from tax exempt bonds issued with the approval of the Minister of Finance. In fact, so many other sources we cannot exhaust. Fellow Ghanaians, these numerous sources of the Student Loan Trust Fund enumerated above is the reason SSNIT cannot and should not go bankrupt. So, our question is, why has the funds not been disbursed as of now? Certainly something is wrong with the SLTF.

From the website of the Students Loan Trust Fund, it is boldly written that the mission of the SLTF is “To provide TIMELY financial SERVICES to eligible Ghanaian tertiary students”. The “timely” and the “services” are written in block letters on the website for emphasis. I do not know what type of clock the SLTF uses but their “timely” is certainly ill-timed. The students’ loan is the life support of many students on campus but unfortunately it is fast losing its relevance.
Ladies and gentlemen of the press, students, who with reasonable expectation of the disbursement of the students’ loan, promised their landlords that they were going to top-up the rent of their hostels from the students’ loan. Most of these students were evicted before the end of the semester. Some had to spend the rest of the semester sleeping on the floor in the rooms of their colleagues, others had no choice but to sleep on tables in the lecture halls. Students have also had to face the ridicule of food vendors as they continually have to buy meals on credit. Many students’ loan beneficiaries have to endure the discomfort of attending lectures and writing exams on empty stomach. University education should not be a punishment!

Most importantly, students’ loan beneficiaries could not cope with the expenses that come with their course work. They could neither buy the recommended books nor afford printing of assignments and project work. It will not be surprising if the affected students register massive failures in their semester examination.
Ladies and gentlemen of the press, the students’ loan is not a grant. Students will pay it back after completing their undergraduate studies. It has become a norm that students are not given the loan at the time they need it. The semester is now over. As we speak, students have not yet received their loan disbursement for the semester. Yet students are expected to pay back this same loan they could not use for the semester. This is unfair to the tertiary student. The tertiary students are now tired of the excuses of the SLTF. The students never receive their loans on time and the SLTF never exhaust their excuses. Normally when SLTF realize students are growing angrier, they will rush to pay a few students. That has been their tactic of keeping students from agitating.
Rumours have it that monies earmarked by SSNIT to pay students’ loan beneficiaries have been misapplied to fund projects of government. We challenge government to come clear on it. If the students loan fund has been used to pay salaries and allowances of the obese government, let the tertiary student know you do not care about them anymore. On the other hand, if the students’ loan fund has not been diverted, then pay the loan beneficiaries today.

Ladies and gentlemen of the press, the SLTF has been struggling to pay beneficiaries every semester in this President Akuffo Addo’s administration. The president is very much aware of the challenges of SLTF but unfortunately he says nothing and does nothing. We challenge President Akuffo Addo to tell the university students what his outfit has done so far to solve these challenges facing the SLTF.
Also, I want to draw President Akuffo Addo’s attention to the incompetence of the CEO and the other five of his appointees on the Board of Trustees of the SLTF. They are only excellent in giving excuses. Simply sack them! They have not lived up to expectations.

They have punished the poor tertiary student enough. It is only fair for President Akuffo Addo to sack those appointees to reaffirm his commitment to the welfare of the tertiary student. If President Akuffo Addo does not sack these appointees in seven days, then it will confirm the rumours that his government actually misapplied the students’ loan fund into paying salaries and allowance of the obese government, hence making the SLTF bankrupt.

It is common knowledge that the students’ loan beneficiaries used to receive their loan disbursement earlier during former President, John Dramani Mahama’s administration, at least, one clear week before every semester begins. We simply want President Akuffo Addo to adhere to such simple standards.

Ladies and gentlemen, the tertiary students are demanding for the disbursement of their students’ loan in the next seven days. Yes! We are giving the SLTF and the government seven days to pay the poor students their loan or face the wrath of the students. Most importantly, the SLTF should be streamlined to meet the needs of students or be scrapped completely for us to know that this government does not care about the welfare of the Ghanaian University student!
Ladies and gentlemen of the press, we will also like to know the status of the following interventions from the Akuffo Addo’s government.

What happened to the Students Loan Trust Fund Plus?

What happened to the Mathematics Science and Technology Scholarship Scheme (MASTESS)?
Thank you.

Signed!

Crispin Wienaa

President TEIN-UCC

Tel: 0541536112

Samuel Ayeh

Communication officer, TEIN-UCC

Tel: 0508526222

Source: Daniel Kaku