Student Loan Eligibility: Only Government-owned Institutions are Fit – NELFUND

By Fatima Saka

In ensuring equity in the process of securing educational student loans, the Nigerian Education Loan Fund has said the agency is only providing loans to students in government-owned institutions.

Added that in the verification process, the agency goes through bank statements of the applicants, checking the applicant bank accounts and seeing what level of funds the applicants needs.

This was revealed by the Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Oluwole Sawyerr during a joint session of Senate and House of Representative Committee on Tertiary Institutions and Tetfund, on Monday in Abuja.

Speaking to journalists on the criteria of acquiring the student loans, the NELFUND Managing Director reiterated that only students who go to government-owned institutions are eligible to apply for the loan. “ We are attending to only the people at the lowest end of the ladder in Nigeria. We’re not doing private institutions, we’re not giving students who are studying abroad.”

“Even amongst the group of students who are applying for the loan, we’re checking to see that they really need it. Those once that have the right age criteria of 35 years below, are those who can apply for the loan, those are the people we’re targeting.”

Speaking about the influence of politicians, Mr Sawyerr said that the system is a faceless system, adding that students can only apply for the loan online. “You apply for the loan just like you apply for an ATM card.

“The agency also checks if the applicant has gone through JAMB, NIN, BVN, matriculation number and admission number before confirmation.”

While interacting with the committee members, the Managing Director of NELFUND revealed that the loan doesn’t have a collateral “this is a zero-interest loan, even though you have given us the power to apply interest, but we have started implementation with zero interest.

And also a long moratorium for repayment. In other words, two years after NYSC is when they are required to start paying back the loan. And even at that, that requirement is based on them having a job.

“If they don’t have a job that is paying them money, they can’t pay back. So there is no criminalization of the individuals who want to take advantage of this opportunity.”