NELFUND’s Student Loan Scheme: Benefits for Public Institutions, Challenges for Private

The Managing Director/Chief Executive Officer of the Nigerian Education Loan Fund (NELFUND), Mr Akintunde Sawyerr, shed light on the Student Loan Scheme, highlighting its benefits for public tertiary institutions and challenges for private institutions.

The scheme, introduced by President Bola Tinubu, aims to provide access to education for all Nigerians, but socio-economic factors have limited its benefits to students in private institutions for the time being.

Sawyerr explained that the fund is a tool for wealth redistribution in the society, intended to help the people at the lower cadre.

As a social program, it aims to assist the poor in accessing tertiary education, with the money to fund the scheme coming from one percent of the revenue generated by the Federal Inland Revenue Service (FIRS) annually.

However, due to the higher tuition fees in private institutions, the NELFUND has decided to focus on public institutions for now.

Beneficiaries of the Student Loan Scheme can apply for an amount that depends on their course of study and the tuition to pay.

The funds will be divided into two parts: tuition fees paid directly to the schools and stipends for daily living, which will vary based on the location and cost of living.

The repayment plan has no specific tenor, as the 10 percent monthly repayment will depend on the salaries of the beneficiaries after graduation.

The NELFUND is prepared to deal with loan defaulters, stating that providing false information could lead to imprisonment.

Beneficiaries can defer repayment if they haven’t secured a job after completing the National Youth Service Corps (NYSC) Scheme, but they must swear an affidavit to that effect.

Defaulters may also be prosecuted if found to have lied about their employment status.

The Student Loan Scheme is expected to cover at least 1.2 million students in public institutions and government-approved skills acquisition centers.

Although there are measures to prevent default, there might be cases where beneficiaries cannot repay due to death or other circumstances.

The application process will be online to minimize human contact and ensure efficiency.

While the NELFUND’s Student Loan Scheme is a significant step towards making tertiary education accessible to all Nigerians, it currently excludes students in private institutions due to socio-economic factors.

As the scheme progresses, it will be interesting to see how it impacts the education landscape in Nigeria and whether it will eventually include students in private institutions.