The Federal Government is making preparations to initiate the student loan program between September and October 2023.
David Adejo, the Permanent Secretary of the Federal Ministry of Education, revealed this information during a press conference in Abuja.
He discussed the Student Loan Bill, which was recently signed into law by President Bola Tinubu, fulfilling a promise made during his campaign.
The bill, sponsored by Speaker Femi Gbajabiamila of the 9th House of Representatives, aims to provide interest-free loans to financially disadvantaged Nigerian students.
Adejo emphasized that this legislation would facilitate access to higher education for indigent Nigerians by offering interest-free loans through the Nigerian Education Loan Fund.
The loans would be available to students attending both private and public schools.
President Tinubu has also approved the formation of a committee comprised of ministries and agencies to ensure the successful implementation of the loan scheme.
The Permanent Secretary highlighted that the new bank established by the government, known as the Higher Education Nigerian Bank, would not solely focus on loan applications.
It would also function as a regular bank, ensuring that loans are disbursed effectively and addressing issues related to loan recovery that have occurred in the past.
Although the Student Loan Bill outlines the procedure, President Tinubu has directed the committee, composed of ministries and agencies, to convene on June 20.
He has further instructed that recipients of the loans should be identified by the 2023/2024 academic session, commencing between September and October.
Adejo stressed the gravity of this endeavor, emphasizing the need to devise an efficient process for individuals to obtain the loans.
To facilitate the smooth operation of the loan scheme, the government plans to establish a specialized bank dedicated to managing the loans.
This will be accompanied by the implementation of a tracking system to monitor the loans effectively.
Both private and public school students will be eligible for these loans, and a new bank will be created specifically for this purpose, rather than utilizing existing banks.
Adejo highlighted that the loan program is designed to provide access to educational opportunities for students, which will subsequently enhance their employability.
Loan repayment will commence once recipients secure employment.
The Permanent Secretary expressed appreciation for President Tinubu’s commitment to this endeavor, acknowledging his background in the private sector and his focus on job creation.
He acknowledged that while job creation cannot cater to everyone, the President has provided policy direction in this regard.
