The National Student Loan Bill opens avenues for students attending federally or state-established tertiary institutions and government-approved vocational schools to seek financial assistance.
President Bola Tinubu’s recent approval of the National Students Loan Amendment Bill marks a significant milestone. The announcement was confirmed by NTA on Wednesday, April 3, 2023.
Initially signed in June 2023, the bill aims to support Nigerian tertiary students financially. However, its implementation faced delays due to several challenges. Substantial amendments were made to the bill before Tinubu’s final endorsement.
The legislation, spearheaded by Senator Bamidele Opeyemi from Ekiti Central Senatorial District in Ekiti State, aims to enhance the Higher Education Student Loan Scheme’s implementation in Nigeria. It addresses various concerns, including eligibility criteria, loan purposes, funding channels, and repayment protocols.
The proposed Bill establishes the Nigerian Education Loan Fund (NELFUND) as a distinct legal entity with the authority to acquire, manage, and dispose of property to fulfill its functions effectively.
Crucially, the Bill empowers NELFUND to provide loans for tuition, fees, and living expenses to eligible Nigerians studying in approved tertiary institutions and vocational training centers within Nigeria. Unlike the previous Act, the new Bill proposes changes to the management structure and expands eligibility criteria.
Moreover, it removes the income threshold requirement imposed by the previous law and broadens eligibility to students from federally or state-established tertiary institutions and government-approved vocational institutions. Specific criteria for eligibility will be outlined by the Fund.
Furthermore, unlike the previous Act, which limited loan requests to tuition fees, the new Bill allows applicants to seek loans for various institutional expenses and maintenance allowances, offering greater financial flexibility to students.
