The federal government agency in charge of student loans, the Nigerian Education Loan Fund (NELFUND), has explained why there are no students of any South-East higher institution among the beneficiaries of its loans disbursed so far.
According to the agency, no institution from the region has responded to its request for verification of students for the disbursement.
NELFUND stated this on X in response to criticism that the region was deliberately left out of the student loan scheme. This followed the release of a list of the 19 institutions that have benefitted from the loan.
The list published on Friday shows that NELFUND had so far disbursed a total of N2.9 billion loan to 27,667 students across 19 federal universities, polytechnics, and colleges of education but none from the South-East.
What NELFUND is saying
Reacting to complaints that the South-East students were not considered for the loans, the agency said:
“It’s important to clarify that geopolitical zones are not a factor in the disbursement process.
“NELFUND sent a verification list to every institution eligible for disbursement. Payments are being made to institutions that have responded to this verification.
“Unfortunately, we have not yet received any response from the institutions in the South-East. We urge these institutions to complete the verification process so that their students can benefit from the scheme.”
Nigerian students urged to take advantage of loan
Meanwhile, the Managing Director/CEO of NELFUND, Mr. Akintunde Sawyerr has called on Nigerian students to take full advantage of the NELFUND Student Loan Scheme, describing it as a historic initiative aimed at making higher education accessible to all, regardless of financial background.
The MD made this appeal during a Student Loan Sensitization Program organized by the National Association of Nigerian Students (NANS) in Port Harcourt.
- In his address, the NELFUND MD noted that the loan scheme is not just financial aid but an investment in the future of Nigerian students, allowing them to pursue higher education without the burden of financial constraints.
- The MD provided details on the loan scheme, explaining that it covers both tuition fees and living expenses, with repayment terms designed to be fair and manageable.
- He also assured students that loan repayment would only begin two years post-NYSC, provided they have secured employment or started a business.
- Addressing concerns about delays in loan disbursement, the NELFUND MD acknowledged the challenges but assured students that these were being addressed to improve the system’s efficiency.
- He urged students to be patient and to ensure their loan applications are complete and accurate to avoid delays.
What you should know
The revised Student Loan Act of 2024 was established to ensure that education becomes more accessible to all Nigerian students, irrespective of their financial circumstances.
- This legislation is designed to eliminate the financial obstacles that often hinder students from pursuing higher education.
- The Act mandates that NELFUND will be financed through multiple channels, including a small percentage of taxes and duties collected by key government agencies such as the Federal Inland Revenue Service, the Nigerian Immigration Service, and the Nigerian Customs Service.
Furthermore, the fund will benefit from profits derived from the government’s natural resource activities, the issuance of education bonds, and contributions from individuals and organizations.