The Managing Director and CEO of the recently launched Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, has clarified that accessing the loan facilities is contingent upon specific conditions.
In a recent address, Sawyerr outlined that students enrolled in private tertiary institutions, individuals in correctional centers nationwide, and Nigerian students studying abroad are ineligible to benefit from the loan scheme. The NELFUND loan, constituting one percent of the country's annual tax, is reserved exclusively for students attending Nigerian public tertiary institutions, including universities, polytechnics, colleges of education, and government-owned skills acquisition and vocational centers.
The primary objective of the loan, as emphasized by Sawyerr, is to prevent Nigerian students from dropping out of school due to financial constraints, regardless of their financial background or chosen field of study.
Speaking at an interactive session organized by the Education Writers’ Association of Nigeria (EWAN) at the University of Lagos, Sawyerr emphasized that NELFUND operates solely as a financial institution, providing interest-free loans to students and parents lacking the financial means to fund education.
The loan targets economically disadvantaged students, aiming to redistribute wealth and ensure equitable access to quality education. Divided into two segments, the loan covers the entire obligatory fees payable by students, along with stipends for accommodation, feeding, and other necessities, tailored to the geographical location of their institutions.
The first segment of the loan, covering institutional fees, is disbursed directly to schools, while stipends are deposited into beneficiaries’ bank accounts as required. Sawyerr highlighted that beneficiaries must apply for the loan each academic session, with applications processed within 30 days.
To ensure transparency and efficiency, NELFUND verifies beneficiary details such as Bank Verification Numbers (BVNs), National Identification Numbers (NINs), and admission letters from partnering institutions.
Sawyerr underscored that individuals with substantial bank savings or fictitious beneficiaries will not qualify for the scheme. Regarding repayment, beneficiaries are expected to start repaying the loan two years after completing the National Youth Service Corps (NYSC) program, although repayment may commence earlier or later depending on their economic engagement.
The CEO clarified that while NELFUND is gearing up to receive applications from interested students, the portal is not yet operational. Further announcements regarding application procedures will be made public in due course.
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