NELFUND Urges Student Leaders to Take Charge of Interest-Free Loan Scheme
Student Union Presidents Asked to Ensure Transparency, Fast-Track Application Processes
The Nigerian Education Loan Fund (NELFUND) has called on student leaders across Nigeria’s tertiary institutions to take full ownership of the new interest-free education loan scheme. The fund aims to remove financial barriers for students and reduce dropout rates.
NELFUND Holds Stakeholders’ Workshop with Student Union Presidents
Speaking during the fourth day of a stakeholders’ engagement session and technical workshop in Abuja, Iyal Mustapha, Executive Director of Operations at NELFUND, stressed the need for collaboration. The session specifically engaged Student Union Presidents of tertiary institutions.
Mustapha urged student leaders to help ensure their schools verify loan applications promptly, warning that delays from institutions are affecting the release of funds.
“We need your schools to respond promptly,” Mustapha said. “If they don’t confirm your status, we cannot release the funds.”
He reminded the students that the loan scheme is interest-free, requires no guarantors, and comes without the risk of harassment.
“This is your opportunity. We are the youth, and we are here to support you,” he added. “This loan is about removing financial barriers so you can focus on your education.”
The Loan Scheme: Who It Helps and How
Mustapha explained that the loan covers both institutional fees and monthly upkeep allowances. Any student enrolled in a recognized tertiary institution is eligible, regardless of their background or location.
“There is no reason for anyone to drop out of school,” he emphasized.
He also addressed concerns about repayment. Students will only start paying back two years after completing the National Youth Service Corps (NYSC), and only if they are employed.
“In the event of death or a medically verified permanent disability, the loan will be written off. No one is pursuing you,” Mustapha stated. “Your repayment supports the next generation.”
Upkeep Funds Linked to Institutional Fee Payments
Mustapha cautioned students who received upkeep allowances without seeing corresponding fee payments. He explained that upkeep funds can only be disbursed after institutional charges are paid.
“Some institutions fail to notify students when payments are made,” he noted. “If you’ve received upkeep, know that your school fees have already been settled.”
NANS President Warns Against Sabotage, Launches Investigation
The President of the National Association of Nigerian Students (NANS), Olushola Oladoja, warned institutions and individuals against sabotaging the student loan scheme. He confirmed that NANS had formed a five-member investigative committee to probe issues raised by students and whistleblowers.
According to Oladoja, the National Orientation Agency (NOA) alerted NANS to irregularities in how some institutions handled loan disbursements.
“We received reports of institutions not informing students after receiving payments from NELFUND. This cannot be allowed to persist,” Oladoja said.
He added that the committee would work closely with NELFUND and would also visit the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to verify the facts.
Students Call for Greater Transparency
Also speaking at the session, Umar Lawal, a final-year student of Bayero University, Kano, praised the federal government and President Bola Tinubu for delivering on the promise of a national student loan program.
However, he expressed concern over a lack of transparency in some tertiary institutions, which he said threatens the credibility of the initiative.
“This is a welcome initiative, but institutions must be held accountable,” Lawal noted.
Conclusion
NELFUND’s interest-free student loan scheme represents a significant step toward accessible education in Nigeria. However, the success of the initiative depends heavily on transparency, institutional accountability, and student engagement. With student leaders now more involved, the fund hopes to streamline the loan process and empower thousands of students across the country.
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