President Tinubu has signed into law the revised Student Loan Bill of 2024, replacing the previous 2023 legislation with immediate effect. Termed the Access to Higher Education Act, 2024, this new legislation aims to rectify deficiencies in the former student loan law while significantly expanding coverage for individuals pursuing tertiary education or technical and vocational skills development.
Outlined below are ten key points highlighting the provisions of the revamped Student Loan Act:
- Establishment of NELFUND: The newly enacted law emphasizes the establishment of the Nigeria Education Loan Fund (NELFUND) as a corporate entity with legal capacity to sue and be sued. NELFUND is empowered to acquire, manage, and dispose of assets to fulfill its objectives.
- Financial Support by NELFUND: NELFUND is designed to extend loans to eligible Nigerians, covering tuition, fees, charges, and living expenses incurred during their education in recognized higher education and vocational training institutions within Nigeria.
- Funding Structure for NELFUND: The Act outlines a structured process for financing NELFUND. It mandates the allocation of 1% of all taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS) to a designated General Reserve Fund to finance the student loan program.
- Removal of Family Income Barrier: Unlike the previous legislation, the 2024 Student Loan Act eliminates the requirement of considering an applicant’s family income as a determinant for loan approval, thus promoting greater accessibility.
- Elimination of Guarantor Requirement: The new law abolishes the need for applicants to provide guarantors meeting specific criteria, simplifying the application process and broadening access to loans.
- Inclusion of Skill-development Programs: In a significant expansion of scope, the Act extends loan provisions beyond tertiary education to encompass vocational and technical skill development programs offered in government-owned institutions.
- Exclusion of Parent’s Loan History as a Prerequisite: The Act removes the prerequisite of presenting parents’ loan history for loan eligibility, further easing access to student loans.
- Commencement of Repayment Post-NYSC: Beneficiaries are mandated to commence loan repayment two years following the completion of the National Youth Service Corps (NYSC) program, easing the financial burden on recent graduates.
- Penalties for False Statements to NELFUND: Stricter measures are introduced to penalize individuals providing false statements or information to NELFUND, with such actions classified as felonious and liable to imprisonment for up to three years.
- Debt Forgiveness Provision: A compassionate provision within the Act offers debt forgiveness in cases of death or unforeseen circumstances preventing repayment, providing relief for borrowers facing exceptional hardship.
Presidential spokesperson Ajuri Ngelale praised the updated Act for addressing shortcomings in the previous version, asserting its role in promoting educational funding, skills acquisition, and national development.
