The Nigerian Education Loan Fund (NELFUND) has recorded a significant surge in applications for its student loan scheme, with institutions in the northern region leading the way. This development comes as a relief to many students who have been struggling to finance their education.
The Federal Government of Nigeria has been working tirelessly to ensure that education remains accessible to all students, regardless of their financial background. One of the key initiatives in this regard is the student loan scheme, which was launched in June 2023. The scheme aims to provide interest-free loans to students, covering both tuition fees and upkeep allowances. Despite initial skepticism, the scheme has gained significant traction, with over 110,000 applications received so far.
Akintunde Sawyerr, the managing director of NELFUND, highlighted the growing awareness of the scheme across the country. However, he noted that the applications have been disproportionately high from institutions in the northern region. This trend is in contrast to the skepticism being recorded in the southern part of the country. Sawyerr attributed this to the proactive support and data provision from northern institutions.
The scheme, which was initially set to commence in October 2023, faced several delays before its re-enactment in April 2024. The application portal was opened on May 24, with a pilot phase serving federal tertiary institutions. The second rollout will include state-owned tertiary institutions.
The NELFUND loan scheme funds students for both tuition and upkeep allowances. The loans are disbursed directly to the institutions, while the stipends are paid directly to the students. The repayment process begins two years after a recipient completes their youth service, with 10% of their earnings being deducted until the loan is fully paid. Extensions and loan forgiveness are available under conditions such as unemployment or permanent disability.
President Bola Tinubu emphasized that Nigeria will continue to invest in education as a tool against terrorism, banditry, and insecurity. The ceremonial launch of the student loan scheme was attended by prominent figures, including the senate president Godswill Akpabio, the speaker of the house of representatives Tajudeen Abbas, and the finance minister Wale Edun.
The NELFUND student loan scheme has made significant strides in addressing the financial barriers faced by students. The high number of applications from northern institutions underscores the need for continued support and awareness campaigns to ensure that all students have equal access to education. As the scheme continues to evolve, it is expected to play a crucial role in promoting educational equity and empowering the next generation of Nigerian leaders.
