News

Federal Government Announces Decision Regarding Disbursement of Student Loans

Published

2 months ago

February 18, 2024

Stella Charles Akupue

On June 12, 2023, President Tinubu signed the Access to Higher Education Act, 2023, into law to enable indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.11 Feb 2024

Recently, the federal government unveiled its decision not to disburse student loans directly to applicants’ personal accounts. The Executive Secretary of the Nigerian Education Loan Fund (NELF), Akin Sawyerr, communicated this decision, emphasising that the loans will be directed straight to the applicants’ institutions instead.

During a meeting held with the Executive Secretary of the National Universities Commission (NUC), Chris Maiyaki, in Abuja, Sawyerr highlighted the primary reason behind this strategic shift, citing the imperative to prevent any potential diversion of funds. He elaborated that loan recipients must repay the funds two years after completing their mandatory National Youth Service Corps (NYSC) program.

The decision aligns with the government’s commitment to ensure transparency and accountability in allocating educational funds. Sawyerr underscored the significance of this measure in safeguarding the integrity of the student loan system and ensuring that resources reach their intended beneficiaries effectively.

According to a transcript of the meeting obtained by Naija News in Abuja, Sawyerr outlined the diverse funding sources for the NELF, which include a percentage of government profits from oil and other minerals, taxes, levies, and duties from federal revenue-generating agencies. Additionally, contributions from education bonds and endowment funds, as well as donations and gifts, will contribute to financing the education loan scheme.

However, the proposed student loan scheme has met with resistance from lecturers under the auspices of the Academic Staff Union of Universities (ASUU), particularly at the Federal University of Technology, Akure chapter. The lecturers have expressed apprehensions that the scheme could lead to a reduction in funding for public universities, further exacerbating the challenges faced by financially disadvantaged Nigerian students.

As the government moves forward with its plans to revamp the educational financing system, debates and discussions are expected to continue regarding the best approach to ensure equitable access to education while addressing the concerns raised by stakeholders.

FG Announces Disbursement of Student Loans

ATTENTION:

Unauthorized use and/or duplication of this material and other digital content on this website, in whole or in part, without express and written permission from Legal Attorney Blog is strictly prohibited.

Exciting news! The Legal Attorney Blog is now on WhatsApp Channels. Subscribe today by clicking the link and staying updated with the latest legal news.