The Nigerian Education Loan Fund has urged student leaders across various tertiary institutions to take full ownership of the new interest-free education loan scheme.

This call was made by the Executive Director of Operations at NELFUND, Iyal Mustapha, during a Stakeholders’ Engagement Session and Technical Workshop on NELFUND System Automation and Loan Application Processes in Abuja.

The fourth day of the stakeholders’ engagement was dedicated to a session with Student Union Presidents of tertiary institutions.

Mr Mustapha cautioned institutions against delays in verifying students’ applications.

He explained that once applications were verified, they were forwarded to the respective institutions for confirmation, a step that was sometimes delayed disbursement due to slow institutional responses.

He stated, “We need your schools to respond promptly. If they don’t confirm your status, we cannot release the funds. You must play a role in ensuring your institutions fulfil their responsibilities. This is your opportunity. We are the youth, and we are here to support you. This loan is about removing financial barriers so you can focus on your education. There is no interest, no guarantor, and no harassment, only a commitment to learning.’’

Mr Mustapha explained that the NELFUND scheme was developed to address dropout rates linked to financial hardship.

According to him, it provides Nigerian students with access to loans that cover institutional charges and include a monthly upkeep allowance.

He emphasised that any student enrolled in a recognised tertiary institution in Nigeria was eligible, regardless of background or geographical location.

He added, “There is no reason for anyone to drop out of school.’’

Addressing concerns about loan repayment, Mr Mustapha assured students that repayment would only commence two years after completing the National Youth Service Corps (NYSC), and only if the graduate was employed.

He said, “In the event of death or a medically verified permanent disability, the loan would be written off. No one is pursuing you. This is your loan, your government, and your repayment to support the next generation.”

He also advised students who had received upkeep allowances without corresponding institutional fee payments to approach their institutions, noting that upkeep funds cannot be disbursed unless institutional charges were settled.

“One of the issues we have identified is that some institutions are failing to notify students when payments have been made. Anyone who has received upkeep should understand that their institutional charges have already been paid to their institution,” he stated.

The President of the National Association of Nigerian Students, Olushola Oladoja, warned institutions and individuals allegedly undermining the federal government’s student loan scheme.

Speaking on the allegations of sabotage by some institutions, Mr Oladoja noted that the association inaugurated a five-member investigative committee to examine growing concerns about loan disbursement and accountability.

According to him, NANS took swift action following intelligence from the National Orientation Agency which reported irregularities in how some institutions handled student loan payments.

He stated, “We received information indicating that there are issues within NELFUND, including cases where the fund claims to have paid institutions, but the schools failed to notify the students. This cannot be allowed to persist. Our committee will engage directly with NELFUND, visit the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to verify findings, and get to the root of the matter.”

Also speaking, a final-year student of Bayero University, Kano, Umar Lawal, commended President Bola Tinubu’s administration for delivering on its promise of a student loan scheme aimed at transforming tertiary education in Nigeria.

Expressing appreciation for the initiative, Mr Lawal also raised concerns about the lack of transparency and accountability in some tertiary institutions, saying it must be addressed. 

(NAN)