Kester E.
On Wednesday, President Bola Tinubu signed the Bill for the Repeal and Re-Enactment of the Student Loans (Access to Higher Education) Act in 2024.
This action followed detailed reviews by both the Senate and the House of Representatives of the report presented by the Committee on Tertiary Institutions and TETFund. Previously, the bill had passed through the second reading stage in both chambers of the National Assembly.
President Tinubu had submitted a request to both the Senate and the House of Representatives to revoke the existing Student Loan (Access to Higher Education) Bill and introduce a new one.
The newly enacted legislation, spearheaded by Senator Bamidele Opeyemi from Ekiti Central Senatorial District, aims to enhance the implementation of the Higher Education Student Loan Scheme in Nigeria. It addresses issues related to the management structure of the Nigerian Education Loan Fund, applicant eligibility criteria, loan purposes, funding sources, and procedures for disbursement and repayment.
The Bill establishes the Nigerian Education Loan Fund (NELFUND) as a legal entity with the authority to represent itself in legal matters. It is empowered to acquire, hold, and dispose of assets to fulfill its mandate. The primary objective of the Bill is to provide loans to eligible Nigerians for their educational expenses, including tuition, fees, charges, and living costs while studying in approved tertiary institutions and vocational training centers in Nigeria.
In contrast to the previous 2023 Act that placed the administration of the Fund under a Special Committee overseen by the Governor of the Central Bank of Nigeria, the new Bill introduces changes to the management structure. It eliminates the income-based eligibility requirement set by the existing law, which mandated an annual income of less than N500,000 for applicants or their families.
Moreover, the Bill expands the eligibility criteria to include students from federally or state-established tertiary institutions and government-approved vocational institutions. Specific eligibility criteria will be determined by the Fund. Unlike the 2023 Act, which only covered tuition fees, the new legislation allows applicants to request loans for various institutional charges and maintenance expenses.
