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Tag: student loan scheme

  • NELFUND MD: N110bn approved for student loan scheme

    NELFUND MD: N110bn approved for student loan scheme

    The Nigerian Education Loan Fund (NELFUND) has approved a total of N110 billion which would be disbursed to students in public institutions across the country, its Managing Director, Akintunde Sawyerr, has said. 

    Sawyerr said about 60 per cent of the funds would be paid as tuition fees while 40 per cent has been disbursed to the students as their upkeep allowance. 

    The NELFUND boss, who disclosed this while speaking to journalists during the inauguration and induction of members of NELFUND Servicom unit in Abuja on Tuesday, said the figure keeps changing as they make disbursement frequently.

    Sawyerr said: “We’ve just approved a new batch, N110 billion, that is going to students in one form or another. About 60 per cent of that is going directly to their institution in full, because we pay 100 per cent of fees. 40 per cent has been disbursed in terms of their actual upkeep. The upkeep figure is slightly behind the total fee.

    “We estimate that amongst the constituency that we’re responsible for, people in tertiary institutions that are government owned, which are defined as universities, polytechnics and colleges of education, and the rafts of students that are going to be coming in for the next session, we estimate that our commitment to date is to people somewhere in the region of 2.1 million. 

    “It’s an estimate, and it gets bigger than that when we start our skills programme, because there we have a lot more.”

    The Managing Director explained that of the 417,000 students who have registered on its portal, about 328,000 students who have actually applied.

    Sawyerr added that some of the loan applications have been processed, adding that most of the applicants will get the loan. 

    He said: “We have about 417,000 students who have registered on our portal with the details we have, and about 328,000 students who have actually applied.

    “Some of them have been processed, many of them have been looked at and most of them will get the loan. But it’s important to also mention that we are growing by about 1,000 applications a day. At the height of it, we had 9,000 applications in one day.

    “I should also mention at this stage that those who register may choose not to go ahead and apply, or may want to get more information, but at least they’re captured in the system, they know they’re in the system. So that’s why you have this gap between 417,000 registrants and 328,000 applicants. We often find that the number of applicants is ahead of the number of registrants, which means that people are suddenly deciding or making up their minds to then apply after they’ve registered.”

    Speaking on the repayment plan, Sawyerr said: “So students who apply for this loan today get an interest-free loan. What they apply for and are given or benefit from is exactly what they will pay back. It’s interesting because they don’t pay it back immediately. What happens is that two years after National Youth Service is complete, they are then obliged to report to us their status in terms of employment.”

     National Coordinator of SEVICOM, Nnenna Akajemeli said setting up a SEVICOM unit for NLFUND was to help the inductees to run the government business as they stand as the customer service arm of running business.

    Read Also: CNG-SW demands expanded NELFUND coverage

    She said the inauguration of the unit spoke volumes as to what they are prepared to do in terms of service delivery and provisions to all the citizens and stakeholders.

    “As they said, they are positioning the office further to ensure that all government has set them up to do as the Nigerian Education Loan Fund, that they do it to the letter, to touch the lives of students, especially those who do not have access to funds for their higher education, increasing access to funds and education funds in higher institutions,” she said.

    She said members of the unit are mandated to reach out to indigent students, Nigerians who are brilliant, who are ready to go to school but do not have access to funds. 

    “They have to manage this process and ensure that they bring about quality graduates, even from the work that they do in this office,” she added. 

  • President Tinubu’s student loan scheme is for all Nigerians, by Fredrick Nwabufo

    President Tinubu’s student loan scheme is for all Nigerians, by Fredrick Nwabufo

    The student loan scheme is a conception of the purest, noblest, and loftiest of intentions and design. It is a bond to secure the nation’s future and a promissory note to a prosperous destiny for many young Nigerians.

    The kernel of the scheme is to remove the impediments of finance and guarantee access to higher education and skill development for all needing Nigerian students irrespective of where they come from, where they worship, what they look like, who they know or do not know, or whatever is their political interest and social complexion. It is for all Nigerians.

    As someone who had to take up the emergency job of an English and Literature-in-English teacher to pay my way through school, having been orphaned at a young age, I share a vicarious sense of relief and elation over the scheme. For many students like me who had to struggle through fiscal cliffs at school, President Bola Tinubu’s Student Loan Scheme is that actual pot of gold at the end of the rainbow. It is manifest hope. It is dreams taking flight. It is an open sesame to glorious destiny. It is victory.

    There have been spurious allegations of exclusion of certain groups in the disbursement of loans and upkeep funds by the Nigerian Education Loan Fund (NELFUND), the institutional vehicle of the Student Loan Scheme.

    NELFUND has done well to provide sufficient information on the modalities of loan disbursement. In response to the sputtering concerns, The Fund said it had ‘’sent a verification list to every institution eligible for disbursement, and that payments are being made to institutions that have responded to this verification’’, however, some institutions are yet to respond.

    Read Also: BREAKING: Tinubu launches student loan scheme

    NELFUND also explains: “The loan is open to all public tertiary institutions. The first phase of the loan is open to only students studying and desiring to study in federal higher institutions in Nigeria. The other phases will be announced in due course. Students who have secured admission into all public Nigerian universities, polytechnics, colleges of education, or vocational schools, with proof of admission that includes name, date of birth, admission letter, JAMB number, matriculation number, and BVN. All full-time students are eligible for the loan, but only applicants will benefit from the loan.’’

    Clearly, only applicants – those who have applied – can benefit from the loan. But there seems to be apathy from certain parts of the country, particularly in the south. The Student Loan Scheme is a national programme being implemented for the advancement of the nation and the benefit of all Nigerians. No section of the country will be left behind. It is a moving vehicle, and all groups are onboard.

    As of July 31, 2024, NELFUND has disbursed over N1.1 billion as tuition for 20,000 students, and these disbursements were made to various academic institutions based on their calendar. And more disbursements have since been made.

    Many institutions in the South-East, including The University of Nigeria, Nsukka, Nnamdi Azikiwe University, Ebonyi State University, Imo State Polytechnic, Abia State Polytechnic, Abia State University, etc, have already been onboarded.

    It is important that we all embrace this locus classicus of innovative governance. Trust and faith in the government is of the essence. The Student Loan Scheme is for us all. No one is being excluded, and no one will be left behind.

    • Nwabufo is Senior Special Assistant to the President on Public Engagement
  • Fed Govt releases conditions as Student Loan Scheme begins

    Fed Govt releases conditions as Student Loan Scheme begins

    • Youths in federal institutions get first opportunity

    • Portal opens Friday

    Students in Federal Government-owned tertiary institutions will be the first batch of beneficiaries of the student loan scheme.

    The portal opens on Friday.

    Chief Executive Officer of Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, stated this yesterday while unfolding the conditions would-be beneficiaries will be required to meet.

    No fewer than 1.2 million students are expected to benefit from the cardinal programme of the Bola Ahmed Tinubu Administration.

    President Tinubu on April 3 signed into law the bill on the scheme in line with his electoral promise that no Nigerian student would drop out of school on account of lack of funds.

    The ambitious cardinal programme will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS).

    This year, the revenue target given to the FIRS is N19.4 trillion.

    Should the agency meet this projection, N194 billion will be available as a loan to the beneficiary students.

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    Repayment, according to the law, will commence two years after the completion of the National Youth Service Corps (NYSC) programme.

    Speaking yesterday on other conditions for beneficiaries, Sawyerr said students in federal institutions such as universities, polytechnics, colleges of education and technical colleges, whose institutions have completed and uploaded their student data would get the opportunity.

    He said: “We are going to start with federal institutions because it is a programme that we have to roll out in phases. It will eventually be rolled out to state-owned institutions.”

    Sawyerr said no guarantor was needed for students to access the loan.

    He said applicants would be required to provide their “Joint Admissions and Matriculation Board (JAMB) letter, National Identification Number (NIN), and Bank Verification Number (BVN).”

    He added: “Applicants are also to complete the application, including personal details, academic information and details of financial need and submit the application after reviewing it.”

    Speaking on the repayments, he said the loanees, whether they are working with the government or in the private sector, must pay back the loans after two years.

    He explained: “The agency will pay 100 per cent of the fee for the loanees to the institution. There is also the track of providing stipends to the loanees.

    “We only pay for one session at a time because people drop out of institutions. They change institutions or change their mind about the course they are doing.”

    On the possibility of bad loans, he said the agency was trying to make sure that it had as much information about the applicants as possible and be sure that they were bonafide Nigerian citizens and were of good standing.

    “We also have various ways of working with security agencies to ensure that the people who are applying for these loans are not people who may want to be fraudulent,” Sawyerr said.

    Scheme excites Youth Parliament

    Speaker, Lagos State Youth Parliament, Itunuoluwa Soniregun, applauded the President for bringing the Student Loan initiative to fulfillment.

    She said that the importance of the loan on youths and national development could not be over-emphasised, adding that President Tinubu had shown ‘great dedication’ to the initiative, which will greatly benefit students.

     “The financial burden associated with attending higher institutions can be overwhelming, this pressing need, I believe, has necessitated the implementation of the student loan bill in the country,” the Youth Parliament leader said, according to the News Agency of Nigeria.

    She added: “The Federal Government of Nigeria, in its wisdom, has once again acknowledged the importance of investing in future leaders, by providing financial assistance through the Nigerian Education Loan Fund.

    “We are indeed, impressed and applaud our vibrant President for not only keeping to his words on this initiative, but for the promptness which youths can have access to it from May 24.

    “This, I must confess presents a unique opportunity for our vibrant and ambitious youths to access higher education, without being deterred by financial constraints.

    ”By subscribing to this loan scheme, students can pursue their dreams, and acquire the skills necessary for personal and professional growth,” Soniregun said.

    She urged willing applicants to be proactive in seeking assistance and clarification from the relevant authorities, when necessary, as they approached the scheme.

    Soniregun said: “For those who are interested in benefiting from the Nigerian Education Loan Fund, I encourage you to seize the opportunity and explore the possibilities it offers as soon as possible.

    ‘Make thorough research about the requirements and guidelines; ensure that your applications reflect your commitment to academic excellence and personal growth.

    “After getting it, use the funds wisely and judiciously, acknowledging that the Federal Government’s commitment to your education is a testament to their faith in your potential.”

    She also charged would-be candidates to strive for excellence in their academic pursuits, as the knowledge and skills they acquired would transform their lives and contribute to overall growth of the nation.

  • 12 important things to know about Nigeria’s student loan scheme

    12 important things to know about Nigeria’s student loan scheme

    President Bola Ahmed Tinubu signed the student loans amendment bill into law at the State House on Wednesday, April 3.

    The Act, also known as the Students Loan Law, also established the Nigerian Education Loan Fund, which is expected to handle all loan requests, grants, disbursement, and recovery.

    Here are 12 things to know about the student loan scheme:

    Read Also: Use the student loan scheme to foster digital skills

    1. Nigeria’s student loan is interest-free!

    2. The sum is static with a range of repayment options that are tied to a borrower’s income.

    3. The beneficiaries will get a two-year “grace period” after completing the one-year National Youth Service before they are expected to commence repayment of the loan.

    4. The beneficiary begins repayment only when he or she has started earning income.

    5. The baseline repayment amount is 10% of the monthly net pay of the beneficiary (in the case of an employee) or 10% of monthly income or profit of the beneficiary (in the case of a self-employed)

    6. There is also an option of a one-off repayment or an opportunity to indicate the particular percentage model you want for those in private business.’

    7. Beneficiaries who can not find employment within the grace period of two years will have to periodically report their employment status to the Student Loan board.

    8. Beneficiaries of the student loan confirmed to be dead, terminally ill and incapable of earning a living through work will be granted waivers.

    9. The sources of funding as dictated by the Act include; one percent of all profits accruing to the federal government from oil and other minerals; one percent of taxes, levies and duties accruing to the federal government from the Federal Inland Revenue Service (FIRS), Nigeria Immigration Service (NIS) and Nigerian Customs Service (NCS); education bonds and education endowment fund schemes.

    10. The fund is to be domiciled in the Central Bank of Nigeria (CBN) and managed by an 11-person special committee chaired by the CBN governor, the law stipulates in Section 5.

    11. To apply for the education loan, candidates are required to submit applications to the chairperson of the CBN-governor-headed committee through their respective banks.

    12. The application is to be accompanied by a cover letter signed by the head of their institutions (vice-chancellors for university students, rector for polytechnic students and provost for students of colleges of education) and student affairs officer of the institution.

  • Use the student loan scheme to foster digital skills

    Use the student loan scheme to foster digital skills

    By Shuaib S. Agaka

    SIR: The Director-General of the National Information Technology Development Agency (NITDA), Abdullahi Kashifu Inuwa, recently urged the Nigeria Education Loan Fund (NELFUND) to prioritize short courses on digital skills.

    The call is very apt and timely, a significant step forward in Nigeria’s digitalization journey especially when the country is experiencing boost in terms of technological advancements.

    Presently, Nigeria finds itself at a pivotal crossroads in the landscape of global technology and innovation. As the nation strives to position itself as a leader in the digital age, the importance of equipping its populace with essential digital skills has never been more critical.

    The advocacy for digital skills through the student loan scheme comes at a time Nigeria is battling with the challenges and opportunities presented by the digital revolution. With the rise of emerging technologies such as artificial intelligence, block-chain, and the Internet of Things (IoT), the demand for skilled professionals capable of harnessing these innovations is on the rise.

    Against this backdrop, the integration of digital skills training into student loan schemes presents a unique opportunity to democratize access to education and empower Nigeria’s youth with the tools for success in the digital economy.

    By prioritizing short courses on digital skills as suggested by NITDA’s boss, NELFUND has the potential to induce a transformative shift, enabling individuals from diverse socio-economic backgrounds to acquire the technical competencies necessary to thrive in an increasingly digitized world.

    As the world becomes increasingly interconnected and reliant on digital infrastructure, the failure to embrace digitalization poses significant risks to Nigeria’s economic competitiveness and resilience. Without adequate digital skills and infrastructure, Nigeria risks falling behind in the global marketplace and missing out in opportunities for investment, trade, and technological advancement.

    In an era where digital innovation drives productivity gains and economic growth, the stakes for Nigeria’s digital transformation are higher than ever.

    Furthermore, incorporating digital skills into student loan fund holds immense potential to revolutionize the Nigerian antiquated educational system, ushering it into the modern era of civilization. This transformative initiative not only addresses the evolving needs of the workforce but also aligns with global trends toward digital literacy and technological proficiency.

    In today’s world, technological skills extend beyond computer science alone. Proficiency in digital skills in various disciplines is paramount and the importance can never be overstressed.

    It is becoming increasingly evident that the global economy is swiftly transitioning from a reliance on petro-dollar to a tech-dollar economy. Even advanced nations recognize the urgency of preparing for this economic shift to ensure the continued prosperity of their economies.

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    As technology rapidly transforms industries and revolutionizes traditional job markets, individuals equipped with advanced digital competencies are more adept at navigating the complexity of the digital economy. This proficiency not only enhances personal prospects for employment and entrepreneurship but also contributes significantly to the overall development of the country.

    Many digital skills training courses are often costly, rendering them inaccessible to the larger population. By incorporating digital skills training into student loan schemes, this barrier can be addressed.

    Student loan schemes are designed to assist individuals, particularly those from low-income backgrounds. Therefore, the inclusion of digital skills acquisition within student loan schemes will have far-reaching benefits for the country as a whole. By investing in programs that offer credentials with value in the job market, student loan schemes can increase the employability of graduates and help them secure meaningful employment in the digital economy.

    The integration of digital skills acquisition into student loan schemes will be a transformative approach to addressing the challenges of digital skill acquisition while simultaneously enhancing access to higher education. This strategy will not only equip individuals with the necessary skills to thrive in the digital age but also promote economic growth, foster innovation, and ensure inclusivity across diverse communities.

    As the world continues to evolve technologically, it is paramount to embrace forward-thinking initiatives that empower individuals from all walks of life to harness the full potential of technology. By harnessing the power of student loan schemes to bridge the digital divide, nations can pave the way for a more equitable, prosperous, and digitally-enabled future for all.

    • Shuaib S. Agaka, Kano.