Ghanaian student borrowers in need of financial assistance for university or college have the option of government student loans or private student loans. The majority of students in Ghana rely on borrowing to fund their education.
When deciding between government and private loans, it is advisable for undergraduate students to first explore government loan options.
Government loans do not mandate a guarantor or collateral, and they provide more borrower-friendly features like income-driven repayment plans and loan forgiveness compared to private loans.
To responsibly manage debt, students should anticipate their repayment obligations by utilizing a student loan payment calculator.
It is crucial to borrow only what is necessary and to avoid taking on excessive amounts or high interest rates that may become burdensome after graduation, especially considering the delayed and partial salary payments common in Ghana for newly employed individuals.
To access government student loans, applicants must start by submitting an application for government student aid through their district assembly, government’s official student aid website, or the relevant school authority.
Application process to get student loan
This application process typically takes a few weeks to complete. Following approval, students will receive a financial aid award letter detailing the available subsidized loans, which are preferable over unsubsidized loans for students with financial need.
Subsidized loans cover the interest while the student is in school, unlike unsubsidized loans that start accruing interest immediately. For those considering private student loans to cover remaining educational costs, various financial institutions in Ghana, including banks, credit unions, and online lenders, provide such services.
To qualify for a private student loan, borrowers typically need good academic performance, guarantors, a valid Ghanaian identification card, and Ghanaian citizenship. By meeting the necessary requirements, students can ensure their eligibility for both government and private student loans without facing any obstacles.