Tag: students’ Loan

  • Students’ loan

    Students’ loan

    •We deplore arbitrary fee hikes and sharp practices that render NELFUND’s projections useless

    Recent arbitrary increases in tuition fees in our tertiary institutions, apparently due to the fact that students now have access to loans provided by the Federal Government for that purpose should be expected. We say this given our experiences with how some Nigerians make nonsense of otherwise laudable government projects and programmes.

    The Bola Tinubu administration set up the Nigerian Education Loan Fund (NELFUND) to assist indigent students financially to at least see them through higher education and later repay the loan when they start working. The essence, according to the government, is to ensure that no one is denied higher education simply because his or her parents are poor.

    Many Nigerians commended the initiative which came decades after students loan and scholarships were either few and far between, or non-existent. Even bursary awards that university students used to enjoy from their state governments have vanished into thin air.

    Unfortunately, the loan scheme, barely 16 months after its take-off, seems to be running into stormy waters. The latest of these are the arbitrary increases in tuition fees by several tertiary institutions, particularly for programmes such as Medicine, Nursing, and Law that have been hiked by some institutions ranging between 20 and 522 per cent.

    A report titled ‘Report on Framework to Mitigate the Impact of Increased Institutional Charges on the Fund’s Operations’, lists some of the institutions where these anomalies are recorded. These include: University of Ilesha in Ilesha, Osun State, that raised its Nursing programme fee by about 55 per cent from N825,000 to N1.276 million, while its Law programme rose from N1.276 million to N1.526 million, a 20 per cent increase.

    Ekiti State University in Ado-Ekiti, Ekiti State,  increased its Medicine and Surgery fee from N797,000 to N1.132 million, representing a 42 per cent hike while Edo State University, Iyamho, Etsako West Local Government Area, Edo State, raised the same programme’s fee by N1 million, from N3.250 million to N4.250 million.

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    These arbitrary fee hikes are placing significant financial burden on students as well as render the fund’s projections useless.

    While we agree that some of these increases might be justified given the country’s economic situation; several others are just out of tune with reality. How, for instance, could a higher institution have raised its fee by about 500 per cent in so short a time?

    It would seem that some of these institutions have seen in the students’ loans a new growth area from where they could make profit. This is unfortunate as it is scandalous. Universities should be solution centres and not hubs of problems. There are tidier ways by which they could grow their revenues, even if we admit that they are not equally endowed.

    NELFUND should move swiftly to sift the wheat from the chaff.

    Perhaps it might be necessary to have an arrangement whereby the tuition fees could be determined by a particular body that would comprise stakeholders like the institutions, parents’ bodies and others, for standardisation. We know the environments are not the same; so there would be some variations in the arrangement to take care of the schools’ local peculiarities. But this would be better than individual institutions fixing their fees arbitrarily.

    We support the fund’s recommendations, including stopping disbursements to schools with extreme increases pending review, capping loans for affected institutions until a long-term solution is finalised, or temporarily halting loans to institutions where fee hikes exceed 100 per cent until a thorough review is conducted. We are also in support of the Federal Government’s decision to audit the universities over the TETFUND grants.

    The 51 institutions that had been implicated in illegal deductions and exploitation of the scheme should be appropriately sanctioned without negative impact on the beneficiary students because they are not responsible for the infractions. Indeed, the officials involved must not be spared either. That is the only way the government can demonstrate its zero tolerance for corruption on the arrangement.

    The scheme deserves the support and cooperation of all stakeholders. The schools must understand that the money is not freebie; it is loans that the beneficiaries would repay sometimes later. They therefore need to be sympathetic and considerate in all they do.

  • Technical faults delaying students’ Loan takeoff, says Fed Govt

    Technical faults delaying students’ Loan takeoff, says Fed Govt

    • Portal to open before April 1

    The portal for accessing loans from the  Nigeria Education Loan Fund (NELFund) by interested students will formally open this month, the Federal Government has assured.

    The government attributed the changes in the commencement of the loan scheme to technical glitches and the need to perfect all the processes for its effective implementation.

    President Bola Tinubu on June 12, 2023, signed the Access to Higher Education Bill to enable indigent students to receive interest-free loans to pursue their education in any Nigerian tertiary institution.

    The scheme was slated to commence between September and October 2023, but it was deferred to January.

    The Executive Secretary of the Nigeria Education Loan Fund (NELFund),

    Execute Secretary of NELFund  Akintunde Sawyerr announced the new takeoff period during an interview with the News Agency of Nigeria (NAN) in Abuja yesterday.

    Sawyerr, who advised eligible students to register for the scheme once the portal is opened, warned against its politicisation.

    He revealed that the recovery of loans from the beneficiaries would begin two years after their participation in the national youth service.

    The  NELFund boss, who added that deductions would be made directly from the monthly salaries of the beneficiaries,  said the loans would be granted in phases, beginning first with public university students.  

    He said: “The take-off date is this month (March) and the reason for the delay is that we are trying to get it right.

    “This is not a political programme where we say, oh! we are just going to do it, it doesn’t matter how it works.

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    “This is a programme that will probably run beyond me as a human being, not even as a Secretary. This is something that we want to run adequately, so we have to get it right.

    “We have decided that all applicants should be able to access this scheme regardless of where they are, who they are and who they know.

    “We want this to be a process that is fair to all and we will advertise the portal widely so that applicants will be able to go to the website to fill a series of forms and answer certain questions.

    “Based on the data they input and their answers to the questions, the system will be able to determine appropriately, whether they are eligible to apply or not.”

      Sawyer explained that the reason for the two-year grace for repayment after national youth service was to afford the beneficiaries time to get jobs and be stable before the repayment.

    “The law provides that for students who go into paid- employment, repayment will be two years after NYSC, but, that does not mean that they cannot pay back before that time.

    “However, if they don’t have a job two years after national youth service, we cannot compel them to pay. Where are they going to get the money from? So, we will help them and wait for them to be able to pay.

    “There will be a register of those who have taken the loan and employers will have access to that register and see who has a loan.

    “Once they see who has a loan, when they are employing the individual, they will be obliged through the payroll system to refund 10 per cent of the earnings of that individual back to the fund.’’ 

    The NELFund chief said the modalities for sending the loan repayments to the Fund   were still being worked out.

    “If they are yet to secure employment or if they lose their jobs they are not obliged to pay.

    “We are not trying to turn applicants into criminals, we are trying to help Nigerians who need better education to get it so that they can improve their lives and the country as a whole can see improvement in its social-economic development,’’ he said.