News

Federal Government To Disburse Student Loans Directly To Institutions

Published

9 months ago

Feb 18, 2024.

Eko Hot Blog reports that in a bid to ensure the proper utilization of student loans and to prevent diversion, the Executive Secretary of the Nigerian Education Loan Fund, Akin Sawyerr, has announced that student loans will now be disbursed directly to the institutions of the applicants.

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This move aims to enhance transparency and accountability in the disbursement process.

Speaking during a meeting with the Executive Secretary of the National Universities Commission, Chris Maiyaki, in Abuja, Sawyerr outlined the measures being taken to secure the funds and ensure that they reach the intended recipients.

He emphasized that individuals benefiting from the loans would be obligated to start repaying them two years after completing the mandatory National Youth Service Corps (NYSC).

The sources of funding for the Nigerian Education Loan Fund (NELF) were detailed during the meeting.

These sources include one percent of all profits accruing to the Federal Government from oil and other minerals, one percent of taxes, levies, and duties from agencies like the Federal Inland Revenue Service, Nigeria Immigration Service, and Nigerian Customs Service. Additionally, funding will come from Education Bonds, Education Endowment Fund schemes, as well as donations, gifts, endowments, and revenue from any other viable sources.

Despite the government’s efforts to enhance access to education through student loans, the Academic Staff Union of Universities (ASUU), particularly the Federal University of Technology, Akure chapter, has voiced its rejection of the proposed students’ loan scheme.

The lecturers argue that the scheme, initiated by the President Bola Tinubu-led administration, is a strategy to deprive public universities of essential funds.

They contend that the implementation of such a scheme could burden Nigerian indigent students with permanent debt and exacerbate the financial challenges faced by public universities.

Professor Pius Mogaji, the Chairman of ASUU at FUTA, expressed these concerns during an award ceremony where scholarships were granted to outstanding and financially disadvantaged students at the institution.

Mogaji underscored the potential negative impact of the proposed loan scheme on both students and public universities, emphasizing the need for sustainable funding for higher education institutions.