In a move aimed at redistributing wealth and targeting the education of the economically disadvantaged, the Student Loan Scheme in Nigeria will exclude students from private tertiary institutions, as announced by NELFUND CEO Mr. Akintunde Sawyerr.
The decision to exclude private institution students stems from socio-economic factors, including perceived wealth associated with attending private institutions and concerns about equitable access for students in public universities.
Funded by one percent of the revenue generated by the Federal Inland Revenue Service (FIRS) annually, the scheme will provide funding for tuition fees and stipends for daily living expenses based on the applicant’s course of study and institution.
Repayments, which start two years post-NYSC, will be flexible to accommodate varying post-graduation incomes. However, failure to repay or providing false information could result in legal consequences, including potential imprisonment.
Expected beneficiaries of the scheme include 1.2 million students and those in government-approved skills acquisition centers, with measures in place to prevent defaults, although some non-repayments may occur due to factors like death.
“Though President Bola Tinubu believes the fund is for all Nigerians, some factors have not made us to consider including students in private institutions as beneficiaries for now. We must understand that the scheme is a means to redistribute wealth to balance the society. We have to also know that it is a social programme meant to help in the education of the poor. It is a social scheme meant to help the people at the lower cadre.
” It is generally taken that if your child attends a private university, you may not be seen as being poor. That one apart, if the tuition fee in a private university is say N2 million, you can imagine how many students in a public university such an amount can take care of. Yes, parents of students in private schools also pay taxes, but we have to consider the impact of getting as many people as possible have access to tertiary education,” he explained.
The application process will be conducted online, with loans disbursed within 30 days of application, barring any issues. Individuals with criminal records or convictions are ineligible for the scheme.
