The Multi-Trillion Debt Tsunami: A Global Crisis Already Evident in Ghana

In the past weeks, the World Economic Forum (WEF) drew attention to a crisis it calls a looming “debt tsunami”, the ballooning cost of higher education and the crushing burden of student loans. 

What was once the surest path to upward mobility is increasingly becoming a trap, with consequences stretching far beyond individual borrowers to entire economies.

In the United States, student debt has swelled to about $1.8 trillion, weighing heavily on young professionals already facing sluggish wage growth. In the United Kingdom, student debt has surpassed £200 billion, while in Australia, inflation-linked loan “indexation” is quietly pushing balances higher despite regular repayments. 

And in many emerging economies, limited public funding leaves students borrowing from private lenders at punishing interest rates, often without safety nets.

This isn’t a distant problem. It is also evident in Ghana. For countless students, the challenge is not just excelling academically but surviving financially. Parents frequently sell assets or borrow informally just to cover admission fees and tuition. Students themselves chase scholarships relentlessly or line up at the Students Loan Trust Fund (SLTF) in hopes of securing support. 

Meanwhile, the rising cost of hostel accommodation and related charges piles extra pressure on already stretched households. For many, the financial stress of paying for university eclipses the very dream of completing it.

The WEF warns of the long-term damage: student debt delays homeownership, postpones family life, stifles retirement savings, and limits credit growth. In Ghana, the implications are even sharper. Graduate unemployment is already a pressing issue. 

Adding debt pressure on top of limited job opportunities risks trapping young people in a cycle of financial frustration that undermines the very promise of education. Instead of unlocking opportunity, higher education risks becoming a debt anchor for those without wealth to fall back on.

There is also a new twist: artificial intelligence (AI). As the WEF notes, technology could worsen the situation if it is used primarily to automate collections. Yet, if deployed responsibly, AI could be transformative, streamlining complex loan systems, offering personalized repayment guidance, and helping borrowers balance debt with saving for the future. 

For Ghana, where fintech adoption is already reshaping finance, responsible innovation could ensure that education financing is inclusive rather than exploitative.

According to the WEF, solving the crisis will take more than technology but a shared responsibility approach. Employers, for example, can help by making contributions toward workers’ loan repayments, a practice gaining traction in the US. Governments must rethink financial aid systems and align education financing with broader social needs like housing, healthcare, and retirement. And technologists must ensure innovation prioritizes borrower well-being over profit.

For Ghana the rising cost of tertiary education, coupled with a high demand for loans and scholarships, mirrors a global trend that has already pushed advanced economies into crisis. 

If unchecked, the same pressures could erode Ghana’s social fabric, widening inequality and dimming the promise of education for an entire generation.

The WEF’s warning is a reminder that student debt is not “their problem”, it is our problem too. And unless Ghana takes deliberate steps to make higher education financing more accessible and sustainable, the country risks being swept into the same debt wave now battering economies across the world.

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