Presidency Explains Amendments To Student Loan Act

Presidency Explains Amendments To Student Loan Act

The Presidency has clarified the amendments made to the Student Loan Act, which President Bola Tinubu signed into law on Wednesday, stating that the changes were made in the interest of Nigerian students. Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, provided insights into the amendments in a statement released on Thursday in Abuja……READ ALSO Presidency Dismisses Concerns Of Obidient Movement, Focuses On Governance

According to Ngelale, the previous Student Loan Act of 2023 faced challenges related to governance, loan purposes, eligibility criteria, application methods, repayment provisions, and loan recovery. The newly enacted Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, addressed these challenges by introducing significant changes.

One of the key amendments is the establishment of the Nigeria Education Loan Fund (NELFUND) as a corporate body empowered to enter into contracts, including loan agreements, and take actions to ensure repayment by beneficiaries. NELFUND is authorized to provide loans to qualified Nigerians for tuition, fees, charges, and upkeep during their studies in approved tertiary institutions and vocational and skills acquisition institutions in Nigeria.

The governance and management structures of NELFUND have been separated, with a board of directors overseeing governance and a management team led by a managing director responsible for day-to-day operations. The board includes representatives from relevant ministries, regulatory bodies, and participating agencies, while the President appoints both the board and management.

Additionally, the Act ensures a minimum national spread of loans approved and disbursed each financial year and introduces provisions for loan forgiveness in case of death or unforeseen circumstances causing repayment difficulties.

Ngelale also addressed concerns about loan repayment, stating that NELFUND cannot initiate loan recovery efforts until two years after the completion of the National Youth Service Programme. Beneficiaries facing unemployment or income challenges may request an extension of enforcement action.

Overall, the amendments aim to streamline the student loan process, remove barriers to access, and ensure fairness and transparency in loan disbursement and repayment.

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