Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), revealed that they expect between 250,000 and 300,000 students to apply for the student loan scheme this year academic session.
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The director also stated that the disbursement of the Loan will state in July. All the verified applicant will be paid soon.
The director stated that the number of applicants from the non-academic sector may be much smaller because that component of the scheme is only getting started.
However, Sawyerr stated that NELFUND has a sufficient money to cover all students in Nigeria's higher institutions, which currently number approximately 2 million.
He stated that the loan is available to both new and existing students at various public institutions in the country.
"There are around 2 million people currently enrolled in tertiary institutions, including the commercial sector. This loan is available to persons who are already in institutions. This is about more than just people who are coming in. This is about applying for a loan today and receiving it the next session.
"Unquestionably, we can provide loans to anyone. The finances are available for us to cover those kind of figures over time.
"This year, we estimate between 250 and 300,000 academic candidates. We'll have less for the vocational side because we're just getting started," Sawyer explained.
Regarding the Loan Repayment
Speaking about loan recovery, the NELFUND director stated that after applicants begin working, the loan is anticipated to be taken out of their paychecks.
According to him, the project is also covered by insurance to help with certain risks and exposures that could arise during the process.
Sawyer also mentioned that loan forgiveness is available under the updated Student Loan Act in several circumstances, most notably when the borrower passes away and is unable to repay the loan that was given to him.
"Due to the possible danger of financial loss. As you may expect, there is a chance you will lose money on whatever you invest in. There will be insurance on these loans.
It is important to note that the law provides for debt forgiveness in the event of the applicant's death. Insurance will cover a portion of the exposure and hazards.
Sawyerr continued, "It's important to note that when it comes to the loan recovery process itself, there will be targeted deductions from sources when people are earning."
Some other things you need to know about NELFUND
What is the student loan Access to Higher Education Act 2024?
The updated Student Loan Act 2024 intends to remove financial barriers and make education available to all Nigerian students, regardless of socioeconomic status.
NELFUND's principal financing sources are a percentage of taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS), Nigerian Immigration Service, and Nigerian Customs Service, which accounts for 1% of their overall revenue.
The fund will also receive contributions from government earnings earned by natural resource exploitation, education bonds, endowment fund schemes, and gifts from individuals and organizations.
The loans cover tuition, fees, and maintenance costs, and repayment begins two years after the beneficiary completes the NYSC program.