How NELFUND is reducing student dropout from tertiary institutions through interest-free loans, by Mustapha Isah – THISAGE

President Bola Tinubu, on Wednesday, April 3, 2024, signed into law the Student Loans (Access to Higher Education) (Repeal and Reenactment) Bill, 2024. The bill seeks to ensure sustainable higher education and functional skill development for all Nigerian students and youths.

The repealed Student Loan Act of 2023 had some challenges related to governance and management, purpose of loans, eligibility criteria for applicants, application method, repayment provisions and recovery of loans.

The Student Loans (Access to Higher Education) (Repeal and Reenactment) Bill, 2024 was intended to adequately address the challenges highlighted above

The Nigerian Education Loan Fund (NELFUND) is crucial for Nigerian students, offering interest-free loans to cover tuition and maintenance of tertiary education.

It reduces financial barriers for low-income families, prevents school dropout, promotes equal access to education, and helps students focus on academics, fostering a knowledge-based economy and long-term skill development.

NELFUND is one of the social intervention programs introduced by President Bola Tinubu to ensure that students from low-income backgrounds pursue higher education without financial constraints.

The loans are interest-free, easing the financial burden on students and their families.

NELFUND pays tuition fees directly to institutions, reducing the risk of abuse.

Students also receive a monthly stipend for living expenses and daily transportation.

The initiative has reduced the number of students dropping out of tertiary institutions due to inability to pay fees. This brought smiles to the faces of the students and their parents.

Loan repayment begins two years after completion of the National Youth Service Corps (NYSC) program, allowing recipients sufficient time to secure employment.

The repayment agreement is designed to ensure the sustainability of the program while preventing students from being burdened with loan repayments before they become financially stable.

NELFUND covers students at public universities, polytechnics, educational institutions and vocational training centers.

NELFUND opened its application portal on May 24, 2024, and since then 1,734,985 students have submitted applications seeking financial assistance for their education. Of these, more than 1.16 million claimants have already received payments under the program.

The Nigerian Education Loan Fund (NELFUND) has disbursed more than $206 billion in student loans to support tertiary education across the country since the program was launched.

The loan program has reached students in approximately 270 tertiary institutions nationwide

A breakdown of the disbursement shows that N128.84 billion was paid directly to higher institutions to cover the tuition fees of beneficiaries. Additionally, $77.45 billion was paid to students as maintenance allowances to help meet living expenses during their studies.

The NELFUND program has so far been a notable success story as it has helped over one million students from public tertiary institutions to continue their academic pursuits despite their parents’ poor financial situation.

President Bola Tinubu deserves praise and support for this initiative to ensure tertiary education for the children of the poor.

Mustapha Isah is a former president of the Nigerian Publishers Guild.

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