The Chairman of the House of Representatives’ Committee on Student Loans, Honorable Gboyega Isiaka, assured Nigerians on Thursday of the current administration’s commitment to ensuring adequate funding for the Student Loan program, which aims to benefit students in public tertiary institutions nationwide.
During a press briefing held in Abuja, Hon. Isiaka revealed that the necessary funds for the successful execution of the Student Loan program would be sourced from one percent of all revenues accruing to the Federation Account.
Commending the initiative, Hon. Isiaka elucidated that the repeal of the initial Student Loan Act was designed to eliminate all obstacles that could hinder Nigerian students from accessing the loan.
He remarked, “The patriotism and determination to ensure sustainable success led the Executive, particularly Mr. President, to propose these comprehensive amendments, which have now been enacted into law.”
Continuing, he said, “The amendments have addressed numerous deficiencies in the 2023 law, particularly concerning funding. We now have a well-defined corporate entity known as the Nigerian Education Trust Fund, establishing a robust and sustainable institution comparable to those seen elsewhere in the world.”
Expressing contentment with the initiative, Hon. Isiaka commented, “I am confident that the Nigerian government, under President Bola Ahmed Tinubu, has taken significant strides for the Nigerian educational sector.”
Responding to queries about the potential launch date of the scheme, he expressed optimism that the Executive would promptly establish the institution’s management team.
Emphasizing the urgency of the matter, Hon. Isiaka said, “There is a collective eagerness to witness progress. Once constituted, the management of the National Education Trust Fund will be tasked with commencing work promptly for the benefit of millions of Nigerian students.”
Hon. Isiaka stressed that the Education Loan program offers both economic and social advantages, being interest-free and featuring 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 who can afford to send their children to private schools, the need for such loans may be minimal. However, efforts are underway to devise plans for private education.”
He further elucidated 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 underscored provisions in the law stipulating that employers must verify an individual’s education loan status before employment. Non-compliance would lead to penalties, including fines, imprisonment, or both.
