The Nigerian Education Loan Fund (NELFUND) has issued a stern warning to tertiary institutions found to be double-charging students who are beneficiaries of the government's loan scheme. This comes as the agency revealed that loan repayments will be automatically waived in the event of a beneficiary's death and will only commence two years after the completion of the mandatory National Youth Service Corps (NYSC) for employed graduates.
The student loan application portal, which went live on May 24, 2024, has seen a significant number of applications from students in federal and state-owned tertiary institutions across the country. The scheme is a key initiative of the current administration aimed at providing financial support to Nigerian students to cover tuition fees and other related costs.
However, the implementation has not been without its challenges. There have been numerous reports of students being compelled by their institutions to pay tuition fees despite having successfully applied for and been granted the NELFUND loan. Addressing this issue, the management of NELFUND has stated that it is working to rectify the situation and ensure that affected students are refunded. The agency has urged institutions to cooperate or face sanctions.
To be eligible for the loan, students are required to provide their Joint Admissions and Matriculation Board (JAMB) registration number, National Identification Number (NIN), and Bank Verification Number (BVN) during the online application process via the official NELFUND portal. The loan covers institutional charges, which are paid directly to the schools, and in some cases, a stipend for the student's upkeep.
A major highlight of the loan's terms is the repayment plan. According to NELFUND, repayment is contingent on the beneficiary securing employment. For those who are employed, 10% of their monthly salary will be deducted at source. In a move to allay fears and uncertainties, the fund has clarified that beneficiaries who are yet to secure employment after two years of completing NYSC will not be obligated to make repayments. Furthermore, the loan obligation is extinguished upon the demise of a beneficiary.
Looking to the future, NELFUND has announced plans to launch a job portal by 2026. This portal aims to connect loan beneficiaries with employment opportunities both locally and internationally, further supporting their transition into the workforce.
While the student loan scheme has been lauded as a significant step towards making higher education more accessible, some students have expressed concerns over delays in the disbursement of funds. These delays have reportedly caused anxiety among students, especially with deadlines for registration and examinations looming in various institutions.
As the scheme continues to evolve, stakeholders are watching keenly to see how these initial challenges will be addressed to ensure the smooth and effective implementation of the Nigerian Education Loan Fund for the benefit of students nationwide.
