LAGOS: Students in the country’s private tertiary schools would not benefit from the Student Loan Scheme due to socioeconomic factors, according to Mr Akintunde Sawyerr, Managing Director/CEO of the Nigerian Education Loan Fund (NELFUND).
Speaking in Lagos on Wednesday during a series of meetings with education stakeholders, he stated that the fund serves as a mechanism for societal wealth transfer.
“Although President Bola Tinubu feels the fund is for all Nigerians, various considerations have prevented us from considering enrolling students from private colleges as beneficiaries for the time being. We must recognise that the system aims to redistribute money in order to balance society (student loan).
” It is commonly assumed that if your child attends a private university, you will not be perceived as impoverished. Aside from that, if the tuition cost at a private institution is N2 million, consider how many students a public university can accommodate with that money. Yes, parents of students at private schools pay taxes, but we must examine the impact of providing as many people as possible with access to university education,” he stated.
The scheme is funded by one percent of the Federal Inland Revenue Service’s (FIRS) annual revenue. Sawyerr stated that the amount a beneficiary can apply for will be determined by the course of study and tuition to be paid.
“There is currently no threshold or limit on how much can be accessed. Tuition fees vary by school, as do course expenses. However, we have a list of all courses offered by our schools, and learning about the tuition fees is not straightforward. What can be accessible is divided into two sections. Tuition fees will be transferred directly into school accounts, as will stipends for students’ daily living expenses.
Student loan
“Stipends vary depending on location and cost of living, among other factors. The repayment plan includes a revolving loan with no tenor. The rationale for this is because beneficiaries are likely to receive a variety of professions following graduation, and their pay will never be the same. As a result, the 10% that will be repaid monthly will also differ,” he explained.
On how to deal with defaulters, the NELFUND CEO stated that providing incorrect information might land a recipient in jail (student loan).
Source: Vanguardngr.com
