Controller to Begin Salary Deductions for 4,000 Public Sector Workers Over Unpaid Student Loans
The Controller and Accountant-General’s Department (CAGD) has announced plans to commence salary deductions for approximately 4,000 public sector employees who have defaulted on loans obtained through the Student Loan Trust Fund (SLTF).
The move forms part of efforts to recover outstanding student loan debts and improve compliance among beneficiaries who have completed their studies and are currently employed within the public sector.
According to the CAGD, the affected individuals are active government workers who benefited from the student loan scheme but have failed to meet their repayment obligations despite earning regular incomes. The department stated that deductions will be made directly from their salaries through established payroll recovery mechanisms.
Officials explained that the Student Loan Trust Fund is designed to provide financial assistance to tertiary students, with repayments expected after beneficiaries complete their education and secure employment. However, persistent defaults have raised concerns about the long-term sustainability of the scheme.
The salary deduction initiative is intended to enhance loan recovery rates and ensure the continued availability of financial support for future generations of students seeking access to higher education.
The CAGD noted that several engagements and notifications have previously been issued to defaulting beneficiaries, encouraging them to regularise their repayment arrangements before the implementation of enforcement measures.
The department is expected to collaborate closely with the Student Loan Trust Fund Secretariat to verify affected beneficiaries and ensure that deductions are carried out accurately and in accordance with existing regulations.
The announcement has generated mixed reactions among the public. While some have welcomed the move as a necessary step to promote accountability and protect public resources, others have expressed concerns about the financial burden it may place on workers already grappling with rising living expenses.
Authorities maintain that loan repayment remains a contractual obligation and is essential to sustaining the fund’s ability to support students across the country.
