Education

Student Loan Scheme Expanded to 336 State Institutions; 60,000 Federal Students Register

Published by admin on May 31st, 2024.

Student Loan Scheme Expanded to 336 State Institutions; 60,000 Federal Students Register

The Federal Government has expanded its student loan scheme to include state tertiary institutions nationwide.

Dr. Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), announced this in Abuja on Thursday. He explained that students in state institutions would be able to apply for loans when the second phase of the scheme begins on June 25.

Data from regulatory agencies reveal that 336 state tertiary institutions, including universities, colleges of education, and technical colleges, will benefit from the scheme. The National Universities Commission lists 63 state universities, while the National Board for Technical Education reports 54 state polytechnics, 57 state monotechnics, and 111 state technical colleges. The National Commission for Colleges of Education lists 51 state colleges of education.

So far, over 60,000 students from federal institutions have registered on the loan application portal, which opened for the first phase of registrations on May 24. This phase targeted students from federal tertiary institutions, with approximately 1.2 million students from 226 federal universities, polytechnics, colleges of education, and technical colleges expected to benefit.

In a press conference, Sawyerr provided updates on the loan scheme, stating that NELFUND would begin accepting applications from state universities on June 25. He urged state institutions to submit their students’ data promptly to ensure a smooth application process. Sawyerr also announced a new component for skill acquisition loans, set to launch in six months, aimed at equipping students with practical, market-relevant skills.

“Beyond financial assistance, NELFUND recognizes the importance of equipping our youth with practical skills,” Sawyerr said. “In six months, we will launch a comprehensive skills acquisition program, offering training in various vocational and technical fields to prepare students for the modern job market.”

Since the registration portal opened, NELFUND has received over 60,000 registrations, with around 30,000 successfully completing their applications. Sawyerr emphasized that these applications are still under evaluation and no loans have been approved yet.

“The overwhelming response underscores the urgent need for financial assistance among our student population, and we remain committed to addressing this demand,” Sawyerr stated. He noted that over 90% of federal institutions have submitted their student data, with only two federal universities and five federal polytechnics yet to do so.

President Bola Tinubu signed the Access to Higher Education Act, 2023, into law on June 12, 2023. This act enables indigent students to access interest-free loans for education in any Nigerian tertiary institution. The executive bill, titled “A Bill for an Act to repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2004,” establishes the Nigerian Education Loan Fund to manage and invest funds for providing loans to Nigerian students for higher education, vocational training, and skills acquisition.

After signing the bill, President Tinubu emphasized that the scheme ensures no Nigerian is excluded from obtaining quality education, regardless of their background. Initially set to launch in September, the scheme faced delays due to an expansion to include vocational skills loans, as directed by President Tinubu.

Following a briefing from the NELFUND team on January 22, President Tinubu instructed the Fund to extend interest-free loans to students interested in skill-development programs, highlighting the importance of both academic and vocational education.

Ahead of the portal opening last week, Sawyerr stated that about 1.2 million students in federal institutions would participate in the scheme’s first phase. He stressed that the loan application process is entirely online, with no physical contact required between applicants and NELFUND.

Students in federal institutions are encouraged to visit the NELFUND website to apply, with requirements including an admission letter from the Joint Admission and Matriculation Board, National Identity Number, and Bank Verification Number.

“The loan application process has been streamlined for easy access, and online support is available to assist with any questions during the application process,” Sawyerr said. “Education is a vital investment for the future, and this student loan initiative reflects our commitment to this cause.”