How student loan will work, by NELFUND

The Nigerian Education Loan Fund (NELFUND) has erased doubts about how the Student Loan Scheme would work following the review of the Loan Act by the National Assembly. The agency also cleared the air concerning claims that the loan is for children of the elite. DAMOLA KOLA-DARE reports.

The Tinubu Administration brought smiles to the faces of students with the introduction of the Student Loan Scheme, which would ensure access to quality education for all. When the announcement was made, the National Association of Nigerian Students (NANS) stated that it was a veritable platform to curb and reduce dropout rates in universities and other tertiary institutions.

The President on April 3, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law.

The assent was sequel to the separate considerations by both the Senate and the House of Representatives of the report of the Committee on Tertiary Institutions and the Tertiary Education Trust Fund.

The Act empowers the Nigeria Education Loan Fund (NELFUND) to provide loans to qualified Nigerian students for tuition fees, charges and upkeep during their studies in approved public tertiary institutions and vocational and skills acquisition establishments in the country.

The revised Student Loan Act 2024 was created to remove financial barriers and make education more accessible to students, regardless of their economic background.

The primary sources of funding for NELFUND include a percentage of taxes, levies and duties collected by the Federal Inland Revenue Service (FIRS), Nigerian Immigration Service and Nigerian Customs Service, amounting to one per cent of their total revenues.

The fund will also receive contributions from the profits generated by the government’s natural resource exploitation, education bonds, endowment fund schemes and donations from individuals and organisations.

The loans cover tuition, fees, and maintenance costs, while repayment process starts two years after the beneficiary completes the NYSC programme and also dependent on if he or she secures paid employment.

The agency noted that over 90 per cent of federal institutions had also collaborated with the fund.

The registration for the programme commenced in May with 1.2 million students in federal tertiary institutions nationwide starting the first batch.

‘Loan not for children of elite, repayment dependent on employment’
In a telephone chat with The Nation, Nasir Ayitogo dismissed claims that the loan scheme is for children of the elite. He said the reviewed Act had taken out all encumbrances. He said disbursement will be according to the new session of each institution.

The NELFUND spokesperson said latest figures on registration will be made public in due course.

“The loan is open to all students across the country. Once they have their UTME registration number, NIN, BVN, they are good to go. Once they fulfill all the requirements, they are qualified. Your data needs to be sent by your school for verification. Then, NELFUND will credit the institution for the ‘institutional fee’, while the upkeep stipend will be sent to the student account.

“After two years, if a beneficiary does not have a job, or source of income, he or she is not obliged to pay. However, as soon as the beneficiary starts working, he can pay. The organisation where such beneficiary is working will have to remit 10 per cent of the employees’ earnings to a dedicated account provided by the agency,” he said.

‘Approval of immediate disbursement underscores President’s dedication’
NELFUND at its inaugural board meeting last month (June 26), under the leadership of Mr. Jim Ovia, approved immediate disbursement of loans to successful applicants, marking a milestone in its mission to support students with financial aid.

Also present at the meeting were the management of the fund led by the Managing Director/CEO, Mr. Akintunde Sawyerr and representatives of member organisations.

The fund will soon pay out N35 billion in fees and monthly upkeep allowances to 70,000 applicants who are already successful in their loan applications.

The successful applicants were drawn from the pool of 120,000 applicants who sent in their applications as of Friday, June 21.

The successful candidates have been advised to check their dashboards on the agency’s portal to know the status of their applications.

According to multiple sources within the agency, the various applicants will have their fees charged by their institutions paid directly into the institutions’ bank accounts.

State universities not left out
Students of federal institutions were the only ones initially billed to benefit from the loan scheme. After the portal was launched on May 24, the Federal Government announced that state-owned universities would also benefit with their registration to commence later.

In line with its mandate to ensure access to higher education, Sawyerr noted that the fund will begin accepting applications from students attending state-owned tertiary institutions starting from late last month. He said the date was tentative as it depended on the timely submission of student data by the institutions.

“We request all state institutions to submit their student data immediately to facilitate a smooth and seamless application process,” he added.

While it was expected for state-owned institutions to commence application on June 25, it was put on hold by the management of NELFUND for the next 14 days.

A statement by Ayitogo noted that the postponement was necessary due to the failure of several state-owned institutions to upload the required student data and fee information to the NELFUND Student Verification System (SVS).

According to him, only a limited number of state-owned institutions have successfully completed the data submission process since inception.

“The Management of NELFUND hereby announces a 14-day postponement of the application process for student loans for state institutions due to low data submissions.

“This decision was necessitated by the failure of several state-owned institutions to upload the required student data and fees information to the NELFUND Student Verification System (SVS).

“To date, only a limited number of state owned institutions have successfully completed the data submission process. These include 20 state universities out of 48, 12 state colleges out of 54 and two state polytechnics out of 49,” the statement said.

NELFUND noted that the extension will provide additional time for state institutions to comply with the data submission requirements, adding that incomplete or incorrect data submission would lead to outright disqualification.

Ayitogo explained that submitting incomplete or incorrect data will cause delay in application processing and may result in the disqualification of affected students.

“This extension will provide additional time for state institutions to comply with the data submission requirements and ensure their students can benefit from the Federal Government student loan scheme.

“This includes JAMB numbers, matriculation numbers, admission numbers, full names, level, faculties, departments, duration of programme, fees and gender of all eligible students.

“Incomplete or incorrect data submissions will result in application delays and potential disqualification for affected students,” the spokesperson said.

‘NELFUND out of bounds to corruption’
Sawyerr in an interactive session with journalists in Lagos said the fund will not be mismanaged. He stressed that it is for indigent children, who need unfettered access to education. He said NELFUND will be accountable as every penny goes of the fund will be channelled into the education of the underprivileged.

The NELFUND boss, who called for the support of stakeholders, noted that it was imperative to be transparent, adding that everyone should ensure the programme works.

He said: “This is a life-changing opportunity in the country.This money is coming from taxes. It is a redistribution of wealth to empower. One percent of taxes is used to fund education.

“This loan programme is the most important programme in the country today. NELFUND is out of bounds to corruption. It is for children, it is not open to pilfering or theft.

“We have come here to report ourselves to make ourselves accountable to Nigeria, to ensure the money is judiciously used. And NELFUND will make it happen. It is important we hold ourselves accountable in this country.

“Every penny of the money should go into the education of the underprivileged. I am against people stealing from children. We want eyes on it now; that’s why we are engaging civil society organisations. We should make it work for the sake of disadvantaged children out there.”

Students seek creation of jobs to ease repayment
Students, parents and other stakeholders hailed the Federal Government for its commitment to making education accessible for all.

The National Association of Nigerian Students(NANS), the National Association of University Students (NAUS), students in universities across the country and parent body, National Parent Teacher Association of Nigeria (NAPTAN) said the loan scheme was an avenue to create a great future for students.

NANS Senate President Akinteye Babatunde Afeez praised the Federal Government for the initiative and urged students to take the opportunity to ease their current educational expenses to pave the way for future financial stability. He told them to recognise the programme as a valuable tool to facilitate their educational aspirations, and not to misuse or mismanage it.

The National Association of University Students (NAUS), in a statement by its National Security Director, Ayobami Eruobami, hailed government for “a significant milestone” in its government’s commitment to making education accessible for all Nigerian students.

Also, Deputy National President of the National Parent Teacher Association of Nigeria (NAPTAN), Chief Adeolu Ogunbanjo, expressed delight about the initiative, noting that the good thing about it is the student upkeep stipend.

“It is a nice idea and a good one from government. Access should be simplified as best as possible,” he added.

Speaking on how to make it work for students, Abdulkareem Jamiu, a student at Usmanu Danfodiyo University Sokoto (UDUS), expects a longer duration for repayment. He said some people may not even use the school certificates to secure jobs after graduation, adding that they may venture into business so the government should be patient until the graduates get a source of income. Emmanuel Oluwadola, a 400-Level student of Mass Communication at Adekunle Ajasin University, Akungba-Akoko, described the loan scheme as an investment.He urged government to address economic hardship and unemployment to make repayment easy.

Source: The Nation