By Sunday Ogunkuade
Pursuing higher education is a significant milestone for many Nigerian students. However, the rising cost of tuition fees, living expenses, and other educational materials has made it challenging for many students to achieve their academic goals. To address this challenge, the Nigerian government has established various loan schemes over the years. In this article, we will explore the importance of the NELFUND loan to Ladoke Akintola University of Technology (LAUTECH), Ogbomoso students in particular and Nigerian students in higher institutions of learning as a whole.
Tracing the history of students’ loan schemes in Nigeria. The concept of the loan schemes dates back to the 1960s, when the government established the Nigerian Students Loan Board. The board provided loans to students in higher institutions, with the aim of promoting accessibility and equality in education. However, the scheme faced several challenges, including inadequate funding and high default rates.
In the 1970s, the government introduced the National Scholarship Board, which provided scholarships and loans to students in higher institutions. The board also faced similar challenges, including corruption and mismanagement.
In recent years, the government has established many loan schemes, including the Tertiary Education Trust Fund (TETFund) and the National Information Technology Development Agency (NITDA) scholarship scheme. However, these schemes have been criticized for being inadequate and inaccessible to many students.
Against this backdrop, Nigerian Education Loan Fund (NELFUND) was established by President Bola Hammed Tinubu to provide financial support to students in higher institutions. The scheme is designed to provide loans to students who are unable to pay their tuition fees or cover living expenses. The loan is repayable after graduation, with a low interest rate. Interestingly, repaying of the loan is tied to getting a job. According to the NELFUND loan’s repayment structure, students will commence repaying of the loan only after securing employment. Good enough, the repayment periods are tailored to the income of each graduate. This flexible repayment plan ensures that students are not burdened with loan repayments immediately after graduation, allowing them time to establish themselves financially.
There are other numerous benefits that the students and the parents can gain from the NELFUND loan. The scheme provides financial support to students who are unable to pay their tuition fees or cover living expenses. Also, it promotes accessibility and equality in education, ensuring that talented students are not denied access to higher education due to financial constraints. Furthermore, the scheme reduces dropout rates among students in higher institutions, as students are able to complete their studies without financial burdens. Equally, it promotes academic excellence, as students are able to focus on their studies without financial worries.
NELFUND pays the school fees directly to the successful applicants’ institutions. A monthly upkeep allowance of N20,000:00 (twenty thousand naira) will equally be paid directly to the bank account of the students who included it in their applications. So far, billion of naira has been disbursed to many Nigeria public higher institutions of learning. The NELFUND’s managing director, Akintunde Sawyerr said at a press conference in Abuja recently that he had disbursed money to various government-owned higher educational institutions whose students applied for the loan. He revealed that more disbursements will still be follow as applications by students from many tertiary institutions are being reviewed. Sawyerr emphasised that there is no cap on the number of students the fund aims to support, stressing that the mission is to assist every eligible student facing financial challenges. He said, “We don’t have a limit. If the total number needing loans is 1.6 million, we will reach them. If it’s 1.8 million, we will reach them. We are actively seeking students who need this financial support.”
At this juncture however, this writer is urging the management of Ladoke Akintola University of Technology (LAUTECH), Ogbomoso to prioritize this matter and ensure that students are well informed about the NELFUND loan opportunity. At the same time, I am compelled to draw attention to the glaring lack of awareness among the parents, and guardians of LAUTECH’s student regarding the NELFUND loan. This in no small measure will help to bridge the financial gap and support academic success. By providing financial support, promoting accessibility and equality, reducing dropout rates, and promoting academic excellence, the scheme plays a crucial role in ensuring that students achieve their academic goals.
Sunday Ogunkuade writes from Ogbomoso
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