The government of President Bola Ahmed Tinubu has given a fresh update on student loan, saying only federal institutions students are immediate beneficiaries of the loan.
Managing Director of Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr disclosed this while speaking ahead of the portal’s formal launch for applications on Friday, in Abuja.
According to him, students enrolled in federal tertiary institutions whose institutions have finished uploading their data would be able to apply in the first phase.
While noting that the loan application process has been streamlined to ensure easy access for all eligible students in federal tertiary institutions, he said prospective applicants can begin their application process effective from the 24th of May, 2024.
At a briefing on Monday, he said the loan is available to all students in government tertiary institutions and it is going to be rolled out in phases, starting with federal institutions before getting to state institutions.
Sawyerr said the initiative is a crucial component of the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, designed to provide financial assistance (obligatory fees and stipend) to needy students, enabling them to pursue their educational goals without the burden of immediate financial constraints.
He said the interest-free loan programme offers flexible repayment options, which commence two years after completing the National Youth Service Corps (NYSC), provided the individual has secured employment.
He said the Fund will pay 100 per cent of institutional fees directly to the institutions of learning while also providing stipends to the students monthly based on the time school is in session.
He said some of the key features of the student loan to include, No physical contact between the loan applicant and NELFUND, user-friendly Loan Application portal, comprehensive support where Applicants can access online support to assist and affordable and flexible repayment plans.
“We encourage all students in federal institutions to take advantage of this opportunity to secure the required financial assistance for their education. Applicants must submit their applications as early as possible to ensure timely processing,” he said.
The Managing Director, however, pointed out that they were working with various insurance companies on where the loan goes bad and also working with security agencies in case there is a deliberate fraud.
Meanwhile, the Act providing the scheme has no requirement for Next of Kin or Collateral, but institutions must upload the students’ data and register them for them to access the loan.
On June 12, 2023, Tinubu signed the Access to Higher Education Act, 2023 into law to enable indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.
