Published on 23 November, 2015.
The student loan attracts a compound interest rate based on the prevailing Treasury Bill rate. The student borrower pays 10% and the Government of Ghana pays the difference between the 10% and the prevailing Treasury bill rate.
The student borrower’s portion of the interest rate of 10% is calculated and spread over twelve months. Therefore, your loan balance given to you on August 31, 2010 is your loan balance as at July 31, 2010 and will increase if you come to pay in September, 2010. This is because August 2010 interest will be added to give you your new/current loan balance as at August, 2010.