The President, Bola Ahmed Tinubu, on Wednesday, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law.
The approval of the bill follows individual reviews by both the Senate and the House of Representatives of the report from the Committee on Tertiary Institutions and TETFund.
The president during the brief ceremony noted that the main aim of the new law was to ensure that Nigerian children are not denied the right to education which he described as the tool to effectively fight against poverty.
Three things to know about the approved bill include;
What the Approved Bill aims to do
The Bill seeks to enhance the implementation of the Higher Education Student Loan Scheme in Nigeria by addressing concerns regarding the management structure of the Nigerian Education Loan Fund, eligibility criteria for applicants, loan purposes, funding streams, and protocols for disbursement and repayment.
How the Student Loan Works in Nigeria
This Bill establishes the Nigerian Education Loan Fund (NELFUND) as a distinct legal entity empowered to engage in legal proceedings and hold assets to carry out its duties. It grants NELFUND the authority to provide loans to qualified Nigerians for their educational expenses in approved tertiary institutions and vocational training centers within Nigeria.
Unlike the prior 2023 Act, which assigned the Fund’s oversight to a Special Committee led by the Governor of the Central Bank of Nigeria, this Bill introduces alterations to the management framework.
Terms and Conditions of the Student Loan
The newly approved Bill abolishes the income-based eligibility requirement outlined in the current legislation, which mandates an annual income below N500,000 for applicants or their families.
Furthermore, the Bill extends the eligibility criteria to encompass students from federally or state-established tertiary institutions and government-approved vocational institutions, with specific requirements to be defined by the Fund.
Moreover, in contrast to the 2023 Act, which restricted loan applications to tuition fees exclusively, the updated Bill allows applicants to seek loans for a range of institutional fees and living expenses.
