As at January 2014, approximately 70 percent (134,189) SSNIT students loan beneficiaries had completely repaid their loans but some 30 percent (58,557) are yet to pay back their loans.
In its quest to serve contributors better and promptly and to clear the outstanding student loan debt, the Trust has commenced the use of Social Security Contributions to repay outstanding SSNIT Student Loan balances.
A press release issued by SSNIT on Thursday in Accra said such activity, when carried out successfully, will make more funds available to enable the Trust invest the loan recoveries prudently to sustain the fund.
?Taking advantage of the Wide Area Network (WAN) the Guarantor/beneficiary Clearance and Release Process will no longer be handled at only one point, but will be decentralised to all the SSNIT fifty (50) Branches. This is to promote accessibility to our customers and to speed up benefit processing,? it noted.
The recovery of the loans with Social Security Contributions is to be managed under four groups or categories.
In the first one, loan beneficiaries, who have not made any repayment after the completion of their course of study but are contributing to the Social Security Scheme will see part of their contributions being used to offset the Student Loan indebtedness.
Also loan beneficiaries, who have made some repayments after completing their course of study but still have outstanding balances on their loans and are also contributing to the Trust, will pay back through their contributions.
Again, beneficiaries, who have not made any repayment and have no contributions after completing their course of study, but made Social Security contributions prior to accessing the loan come under this group.
?For this group, since they made some contributions before contracting the loan, their pre-loan balance will be used to offset the loan.
?Some loan beneficiaries have not fully repaid their loans 10 years after completing their course of study and therefore have no contributions of their own with SSNIT. For this group, since the guarantors stood surety for them, the guarantorship will be invoked to repay the loan.?
A business desk report