Mr. Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), has said that students enrolling in federal postsecondary educational institutions would be given preference when the loan program is implemented.
This information was revealed on Monday at an Abuja news conference that focused on pre-application loan program sensitization.
Sawyerr underlined that the Fund will carry out its duties to federal institutions of education, polytechnics, and universities that had finished and submitted their student data to its dashboard.
READ ALSO: Students Loan: Tinubu Composes Management Team For NELFund, Appoints MD, Executive Directors
Sawyerr emphasized that students may only apply for a loan if their respective schools put their student data onto the Fund’s dashboard.
NELFUND has collaborated with these institutions to ensure a smooth upload process, with the loan amount being disbursed directly to the beneficiaries through their institutions, he said.
Calling on federal tertiary institutions that have not yet uploaded their students’ details to do so, Sawyerr announced that the loan application would open on May 24.
While the scheme commences with federal institutions, it will eventually extend to state institutions as well.
“The loan application will be opened on May 24. We are starting with the federal tertiary institutions, but the loan will, eventually, be rolled out to state institutions too,’’ he said.
Regarding repayment, beneficiaries are expected to start repaying the loan two years after completing their National Youth Service Corps (NYSC) program, provided they have secured employment.
Repayment is mandatory for all beneficiaries, regardless of their employment location post-NYSC.
Addressing concerns about beneficiaries facing death, mental or physical illness, Sawyerr revealed that the fund is considering an insurance model to manage bad loans.
READ ALSO: FG To Officially Open Student Loan Portal May 24
He also highlighted provisions for debt forgiveness in the NELFund establishment Act.
“The first thing we are doing is to try to make sure that we have adequate information about the application for the loan, as much as possible.
“We need to know that those who applied for the loan are bona fide Nigerian citizens and they are of good standing, and we have various ways to know that.
“We are working with security agencies to ensure the people who are applying for this loan are not people who may want to defraud the system.
“We will also follow up on the beneficiaries each year they apply and ensure we are in constant communication with them.
“We are looking at an insurance model to ensure loans that are bad, are handled. This will help to protect tax-payers money,” he said.
Sawyerr emphasized the importance of ensuring the integrity of the loan application process, stating that measures are in place to verify applicants’ eligibility and prevent fraud. Security agencies are involved in this verification process, he noted.
