Chairman of the House of Representatives’ Committee on Student Loans, Hon Gboyega Isiaka, assured Nigerians on Thursday of the present administration’s commitment to ensuring adequate funding for the Student Loan program, benefiting students in public tertiary institutions across the country.
During a press briefing held in Abuja, Hon. Isiaka disclosed that the required funds for the successful implementation of the Student Loan program would be drawn from one percent of all revenues accruing to the Federation Account.
Applauding the initiative, Hon. Isiaka explained that the repeal of the initial Student Loan Act aimed to remove all encumbrances that could prevent Nigerian students from accessing the loan.
He stated, “The patriotism and determination to ensure sustainable success led the Executive, and particularly Mr. President, to present these far-reaching amendments, which have now become law.”
He continued, “The amendments have addressed many shortcomings in the 2023 law, particularly regarding funding. We now have a well-defined corporate entity called the Nigerian Education Trust Fund, creating a strong and sustainable institution comparable to those found elsewhere in the world.”
Expressing satisfaction with the initiative, Hon Isiaka remarked, “I am convinced that the Nigerian government, under President Bola Ahmed Tinubu, has made significant strides for the Nigerian educational sector.”
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Responding to inquiries about the scheme’s possible launch date, he expressed optimism that the Executive would promptly establish the management team of the institution.
Stressing the urgency of the matter, Hon. Isiaka said, “Everyone is eager to see progress. Once constituted, the management of the National Education Trust Fund will be instructed to begin work promptly for the benefit of millions of Nigerian students.”
Hon Isiaka emphasised that the Education Loan offers both economic and social benefits, being interest-free and with flexible repayment arrangements.
Regarding the exclusion of private tertiary institutions from the scheme, Hon. Isiaka acknowledged the concerns raised during the public hearing. He noted, “For those capable of sending their children to private schools, the need for such loans may be minimal. However, efforts are underway to develop plans for private education.”
He further explained that Nigerian students in private tertiary institutions could utilize the provisions of section 6 of the law, covering school fees and maintenance.
Addressing repayment challenges, Hon. Isiaka highlighted provisions in the law, stating that employers must verify an individual’s education loan status before employment. Non-compliance would result in penalties, including fines, imprisonment, or both.