President Tinubu Signs Amended Student Loan Bill Into Law
In a significant move aimed at enhancing access to higher education, President Bola Tinubu has signed the National Students Loan Amendment Bill into law. The bill, which underwent amendments by the National Assembly following input from the Committee on Tertiary Institutions and TETFund, received final approval from President Tinubu.
Initially signed in June 2023, the National Student Loan Bill aims to provide financial aid to Nigerian tertiary students. However, challenges in its implementation led to delays. Notably, significant amendments were made to the bill before President Tinubu’s endorsement.
The amended legislation, introduced by Senator Bamidele Opeyemi from Ekiti Central Senatorial District, seeks to enhance the implementation of the Higher Education Student Loan Scheme in Nigeria. It addresses various concerns, including the management framework of the Nigerian Education Loan Fund, eligibility criteria for applicants, funding channels, and protocols for loan distribution and repayment.
Under the amended bill, the Nigerian Education Loan Fund (NELFUND) is established as a legal entity with the authority to provide loans to eligible Nigerians for education expenses. This includes tuition, fees, and living costs while studying in approved tertiary institutions and vocational training centers within Nigeria.
Unlike the previous law, which placed the Fund’s administration under a Special Committee led by the Governor of the Central Bank of Nigeria, the amended bill suggests changes to the management structure. Additionally, the requirement for applicants or their families to have an income below N500,000 annually, as stipulated in the previous law, has been removed.
The amended bill expands eligibility by allowing students from federally or state-established tertiary institutions and government-approved vocational institutions to apply. The specific criteria for eligibility will be defined by the Fund.
Moreover, the amended bill enables applicants to seek loans for a broader range of institutional expenses and maintenance allowances, unlike the previous law, which restricted loan requests to tuition fees only.
President Tinubu’s approval of the National Students Loan Amendment Bill reflects a commitment to improving access to education and addressing financial barriers faced by Nigerian students pursuing higher education.
