Nigerian Education Loan Fund Explained

Nigerian Education Loan Fund
Type:Educational Agency
Jurisdiction:Federal government of Nigeria
Headquarters:Abuja
Chief1 Name:Akintunde Sawyerr
Chief1 Position:Managing Director

The Nigerian Education Loan Fund (NELFUND) is a pivotal financial institution established under the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024.[1] It was signed into law by President Bola Tinubu on 3 April 2024, marking a historic step towards ensuring sustainable higher education and functional skill development for Nigerian students and young people.[2] [3] [4] [5]

Background

The NELFUND was created to address the shortcomings of the previous Student Loan Act of 2023, which faced challenges related to governance, management, loan purposes, eligibility criteria, application methods, repayment provisions, and loan recovery.[6] [7]

Objectives

The primary objective of NELFUND is to provide financial support to qualified Nigerians for tuition and other fees, charges, and upkeep during their studies in approved tertiary academic institutions and vocational and skills acquisition institutions within Nigeria.[8] [9] [10]

Structure and governance

NELFUND operates as a body corporate with the power to sue and be sued, acquire, hold, and dispose of property for its functions. It is governed by a board of directors comprising representatives from relevant ministries, regulatory bodies, and participating agencies, including the Federal Ministries of Finance and Education, among others. The management operations are distinct from governance functions, with a management team led by a managing director, Akintunde Sawyerr responsible for the day-to-day operations.[11] [12] [13] [14] [15] [16] [17]

NELFUND introduced an online portal in 2024 to streamline student loan application processes, offering detailed guidelines, eligibility criteria, and required documentation for transparency and accessibility.[18] [19]

Additionally, NELFUND introduced a student loan repayment strategy with flexible plans based on graduates' income levels, grace periods before repayment starts, and loan consolidation options.[20] This approach aims to ease the financial burden on graduates and improve loan recovery rates.[21]

References

  1. Web site: In Detail: The Student Loan (Access to Higher Education) Act, 2024 .
  2. Web site: Sulaimon . Adekunle . 2024-04-03 . BREAKING: Tinubu signs student loan bill into law . 2024-04-19 . Punch Newspapers . en-US.
  3. President Tinubu Signs Reneacted Student Loan Bill Into Law, Approves Management Team . en . 2024-04-19 . www.youtube.com.
  4. Web site: Nda-Isaiah . Jonathan . 2024-04-04 . Again, Tinubu Signs Student Loan Bill Into Law . 2024-04-19 . en-US.
  5. Web site: Suleiman . Qosim . Ileyemi . Mariam . June 12, 2023 . UPDATED: Nigerian president signs student loan bill into law . 2024-04-19 . www.premiumtimesng.com.
  6. Web site: Techeconomy . 2024-04-05 . Why Student Loan Law Was Amended: The NELFUND and FIRS Connections . 2024-04-19 . Tech Business Economy . en-GB.
  7. Web site: New Act Sets to Implement Loans to Students – PLAC Legist . 2024-04-19 . en-US.
  8. Web site: Times . Premium . 2024-04-19 . Students' loans: Clarifying the misconceptions, By Frederick Femi Akinfala . 2024-04-19 . Premium Times Nigeria . en-GB.
  9. Web site: Ademola . Cyrus . 2024-04-05 . 10 things to know about the newly revised 2024 Student Loan Act . 2024-04-19 . Nairametrics . en-US.
  10. Web site: Nda-Isaiah . Jonathan . 2024-04-05 . Repealed Student Loan Act Was Unimplementable – Presidency . 2024-04-19 . en-US.
  11. Web site: Nda-Isaiah . Jonathan . 2024-04-04 . Why Student Loan Law Was Amended — Presidency . 2024-04-19 . en-US.
  12. Web site: Onyedinefu . Godsgift . 2024-03-20 . What you need to know about the Student Loan Bill passed today . 2024-04-19 . Businessday NG . en-US.
  13. Web site: Senate Passes Students Loan Act Amendment Bill - THISDAYLIVE . 2024-04-19 . www.thisdaylive.com . en.
  14. Web site: Nigeria . Guardian . 2024-03-21 . Senate passes student loan bill . 2024-04-19 . The Guardian Nigeria News - Nigeria and World News . en-US.
  15. Web site: Chioma . Unini . 2024-04-06 . Tinubu Appoints Akintunde Sawyerr As NELFUND Managing Director . 2024-04-19 . TheNigeriaLawyer . en.
  16. Web site: Angbulu . Stephen . 2024-04-05 . Student loan: Tinubu appoints new management team for NELFund . 2024-04-19 . Punch Newspapers . en-US.
  17. Web site: 2024-05-18 . Student Loan Applications in Nigeria: Key Dates and Essential Information for Aspiring Students . 2024-07-15 . en-US.
  18. Web site: 2024-05-24 . NELFUND Student Loan Portal Goes Live: A Comprehensive Guide to Application . 2024-07-15 . Naijaecho.com.ng . en-US.
  19. Web site: Suleiman . Qosim . 2024-07-10 . Student Loan: NELFUND onboards 12 more state-owned institutions . 2024-07-15 . Premium Times Nigeria . en.
  20. Web site: 2024-06-01 . NELFUND Unveils Student Loan Repayment Strategy . 2024-07-15 . Naijaecho.com.ng . en-US.
  21. Web site: Ademola . Cyrus . 2024-07-10 . Full list: NELFUND okays student loan application for 12 more state-owned tertiary institutions . 2024-07-15 . Nairametrics . en-US.

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