Student Loan Scheme Now Open to 336 State Tertiary Institutions Across Nigeria

The Students Loans scheme has now been extended to state tertiary institutions across Nigeria. The Managing Director of the Nigerian Education Loan Fund (NELFUND), Dr Akintunde Sawyerr, announced this development in Abuja. From June 25, students in state institutions can apply for the loan facility during the second phase of the scheme.

Expanded Reach to State Institutions

Data from regulatory agencies show that 336 state tertiary institutions will benefit from this scheme. These institutions include universities, colleges of education, and technical colleges. According to the National Universities Commission, there are 63 state universities. Additionally, the National Board for Technical Education lists 54 state polytechnics, 57 state monotechnics, and 111 state technical colleges. The National Commission for Colleges of Education notes there are 51 state colleges of education in Nigeria.

Furthermore, over 60,000 students from federal institutions have already registered on the loan application portal since it opened on May 24. The first phase of the scheme targeted students from federal tertiary institutions, with an estimated 1.2 million students expected to benefit.

Launch of the Second Phase

During a press conference, Dr Sawyerr revealed that NELFUND would start accepting applications from state universities on June 25. He urged state institutions to promptly submit their students’ data to facilitate a smooth application process. Additionally, he announced the upcoming launch of a skills acquisition loans component within six months, aimed at equipping students with market-relevant skills.

“Beyond financial assistance, NELFUND recognises the importance of equipping our youth with practical, market-relevant skills. Six months from today, we will launch a comprehensive skills acquisition programme,” Dr Sawyerr stated.

Registration and Application Process

Since the first phase began, over 60,000 students have registered, though only 30,000 have successfully completed their applications. Dr Sawyerr emphasised that registration does not equate to loan approval, as applications are currently under evaluation. He assured that the overwhelming response highlights the critical need for financial assistance among students.

So far, more than 90% of federal tertiary institutions have submitted their students’ data to NELFUND. Dr Sawyerr called on the remaining institutions to expedite this process to ensure all eligible students can access financial support.

Legal Framework and Government Support

President Bola Tinubu signed the Access to Higher Education Act, 2023, on June 12, 2023. This law enables indigent students to access interest-free loans for their education in Nigerian tertiary institutions. The Act repealed the previous Student Loans Act, 2023, removing the family income threshold and allowing students to apply for loans and take responsibility for repayment.

“This is to ensure that no one, no matter how poor their background, is excluded from quality education,” President Tinubu stated.

The government initially planned to launch the scheme in September but faced delays. Eventually, May 24 was set as the official date for opening the loan application portal.

Skill Development and Vocational Training

In addition to academic loans, the scheme includes provisions for vocational skills training. After a briefing from the NELFUND team, President Tinubu directed the Fund to extend interest-free loans to students interested in skill development programmes. This expansion acknowledges that skill acquisition is as crucial as academic qualifications.

Dr Sawyerr explained that the application portal offers a user-friendly interface for students to submit their loan applications. Only students whose institutions have uploaded their data on the Fund’s dashboard are eligible to apply.

He encouraged students in federal tertiary institutions to visit the NELFUND website (www.nelf.gov.ng) to apply. Required documents include the admission letter from the Joint Admission and Matriculation Board, National Identity Number, Bank Verification Number, and completed application forms from the website.

“The loan application process has been streamlined to ensure easy access for all eligible students,” Dr Sawyerr assured.

Conclusion

The extension of the Students Loans scheme to state tertiary institutions marks a significant step in providing financial assistance to Nigerian students. With the inclusion of vocational training loans, the programme aims to equip students with essential skills for the modern job market. The Nigerian Education Loan Fund continues to work towards ensuring that no student is excluded from quality education due to financial constraints.