BREAKING: NELFUND postpones student loan application for state-owned institutions

The Management of Nigerian Education Loan Fund on Tuesday announced a 14-day postponement of the application process for student loan for state institutions due” to low data submissions,” a statement by the agency said in Abuja. The Fund said the decision was necessitated by the failure of several state-owned institutions to upload the required student data and fee information to the NELFUND Student Verification System. “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 2 state polytechnics out of 49. “While we acknowledge the efforts of these institutions, the failure to submit data from the remaining state institutions poses significant challenges to ensuring a seamless and accurate verification process for student loan applicants. “The application window, initially set to open on June 25, 2024, will now commence on July 10, 2024.” The Fund said the 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. To facilitate an efficient and error-free application process, it is crucial that all state institutions provide complete and accurate information. This includes JAMB numbers, matriculation numbers, admission numbers, full names, level, faculties, departments, duration of program, fees, and gender of all eligible students. Incomplete or incorrect data submissions will result in application delays and potential disqualification for affected students. The fund urged all state institutions to expedite their data submission processes and ensure the accuracy of the information provided. It further warned that Institutions that fail to meet the revised deadline risk disadvantaging their students, who depend on these loans to support their education

FG Reveals Those Exempted From Students Loan 

The Nigerian Education Loan Fund has revealed that Nigerian students studying abroad are ineligible for the newly introduced student loan scheme. The NELFUND’s Managing Director, Akintunde Sawyerr, disclosed this information on Friday. The Access to Higher Education Act, 2023, signed into law by President Bola Tinubu on June 12, aims to provide interest-free loans to indigent students attending Nigerian tertiary institutions. The move is in line with Tinubu’s campaign promise to enhance education funding. Dele Alake, a member of the former Presidential Strategy Team, noted the significance of this legislation in making education more accessible. Following a briefing from NELFUND led by Minister of State for Education, Dr Yusuf Sununu, on January 22, the President instructed the Fund to extend interest-free loans to students pursuing skill-development programmes. Despite these delays, the scheme has seen significant interest, with 30,000 students successfully registering and over 60,000 individuals signing up on the NELFUND website. However, on May 22, 2024, a group of Nigerian students at Teesside University were expelled from their courses and ordered to leave the United Kingdom due to difficulties in paying their tuition fees on time, according to a BBC report. The students cited the devaluation of the naira as a significant barrier to meeting their financial obligations, which has led to a breach of their visa sponsorship requirements. Nevertheless, Sawyerr clarified that the loan scheme was exclusively for students studying within Nigeria. “Nigerians in Diaspora cannot benefit from the student loan. Nigerians schooling in the country are those we want to help. The law does not allow the FG to give loans to Nigerians studying abroad,” he stated. Criticising the exclusion of Nigerian students in foreign institutions from the recently introduced student loan scheme, the National Mobilisation Officer, Education Rights Campaign, Adaramoye Lenin, stated that this exclusion highlighted the inadequacy of the scheme in addressing the educational needs of Nigerian students. He argued that the government was using the loan scheme to avoid properly funding public education, instead shifting the financial burden onto students.

FG Reveals First Beneficiaries Of Student Loan Scheme

The Federal Government has announced that federal institutions will be the initial beneficiaries of the student loan scheme, which is set to commence next week. According to reports, President Bola Tinubu’s administration revealed that the scheme would begin on May 24th. Providing an update on this initiative, Akintunde Swayerr, the Managing Director of the Nigerian Education Loan Fund, stated that the loan distribution will occur in phases. During an interview with Arise Television on Friday, Swayerr confirmed that the loan application portal would indeed open on May 24th, as previously announced. Swayerr also mentioned that the government has organised a sensitization campaign to educate Nigerians on the workings of the scheme. He emphasised that the student loan scheme aims to bridge the financing gap for Nigerian students, enhance their resourcefulness, and ultimately contribute to the country’s development. “On the 3rd of April 2024, President Bola Ahmed Tinubu signed into law a monumental act that seeks to bridge the financing gap for applicants who want to get a higher education that is tertiary level and who want to get vocational training to get proper qualifications that enable them to be more marketable and useful to the Nigerian society. “The fund covers 100 per cent of all the fees of tertiary institutions. There’s also upkeep for the student.” Swayerr noted that this plan will be rolled out in schemes and the first being the public institutions, because of the large number of students in that sector requiring financial aid. “We’re going to roll this plan out in phases. The first phase will be with federal institutions, then to others. “It’s going to be the public sector at the beginning because that’s where we find the bulk of students that perhaps need the financing cover and are most vulnerable. “We have a system that hopefully makes this have a national spread and some degree of equal opportunity for those who have the desire, capacity, and eligibility to engage in this scheme,” he stated. While explaining the modalities of the online application, he said, “We’re going to open the portal for applicants on the 24th of May, so those who want to apply can. “It doesn’t mean they get it that day; it just means they can apply and begin to understand the process, and then after that, there will be an evaluation for those who have qualified for the loan, and then an approval will be given for those who qualified. “The application allows them to create an individual account where they can go online to see their loan status. “Then they get a letter within 30 days telling them whether they are eligible or not; if they are eligible, we will disburse the loan directly to the institution when the course begins.” Further speaking on the process of evaluation of the application, he said, “The application is open to everyone, we’ll do an evaluation, and whatever data we have that helps us determine the neediest, we’ll use it to make judgements. “When applications begin to come in, we will turn the information into intelligence and use the intelligence for decision-making. “It is an online IT application and will include their JAMB number, NIN, BVN, admission number, and matriculation number. “The BVN is that we’ll be able to make some determination as to how much money they have in their accounts; there’s also a declaration that they will state how much of a need they have. It’s a loan and not a grant.” The loan scheme states that the student must repay the loan two years after completing National Youth Service, but due to the high rate of youth unemployment, he clarified the provisions made. “It’s 2 years after NYSC for repayment. In the event that you find yourself 2 years after NYSC and you don’t have a job, you can’t oblige people to pay for loans when they’re not working. This law does not seek to criminalise people. We seek to encourage people to take the loan. “In c

FG’s Student Loan Gets New Kick Off Date

President Bola Ahmed Tinubu is poised to officially launch the national student loan scheme in Abuja on February 21. The initiative aims to support Nigerian students in higher institutions with a flexible repayment plan beginning two years after completing the national youth service. The program is inclusive, extending its benefits to qualified Nigerians with informal education and those enrolled in private universities, as directed by President Tinubu.  The initial phase will focus on students currently enrolled in universities. According to The Cable, the delay in the launch was attributed to the meticulous fine-tuning of administrative and logistical infrastructure.  Mr. Akintunde Sawyerr, the Executive Secretary of the Nigerian Education Loan Fund (NELFUND), confirmed the launch date and emphasized the fully technology-driven application process to eliminate potential biases. Eligibility criteria include Nigerian citizenship, enrollment in a higher institution, financial inclusion qualification, and acceptable academic performance.  The application portal, set to be unveiled at the launch, will require basic personal data, such as the National Identification Number (NIN), Bank Verification Number (BVN), and JAMB number for seamless verification. Loan disbursement will occur directly to schools through NELFUND’s single treasury account at the Central Bank of Nigeria, bypassing commercial banks and finance houses.  A special committee of NELFUND, comprising key stakeholders, is expected to be inaugurated soon, as stipulated by the Students Loans (Access to Higher Education) Act passed by the National Assembly in 2023 and signed into law by President Tinubu on June 13, 2023.