New Application Process for Education Loan Scheme

Shortly after President Bola Tinubu signed the Repeal and Re-Enactment Bill 2024 to inaugurate the Student Loan Scheme, application details for the pilot program were made public. The initiative will kick off by catering to students from public tertiary institutions, prioritizing those enrolled in federal and state universities, polytechnics, and colleges of education.

According to Mr. Nasir Ayitogo, the spokesperson for the Fund, the Education Loan Scheme, officially known as the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, has been signed into law by President Bola Tinubu.

Additional information on the Nigerian Education Loan scheme includes plans for President Bola Tinubu to appoint a chairperson, a Managing Director, and two Executive Directors as part of its executive management team soon. The President is also expected to launch the scheme shortly.

The new legislation, titled “A Bill for an Act to Repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2004 to Establish the Nigerian Education Loan Fund as a Body Corporate to Receive, Manage and Invest Funds to Provide Loans to Nigerians for Higher Education, Vocational Training and Skills Acquisition and Related matters,” was separately reviewed by both the Senate and the House of Representatives before becoming operational.

Under the new act, the Nigerian Education Loan scheme becomes a corporate entity with the ability to enter into contracts, including loan agreements with applicants, or to initiate enforcement actions to recover loans from beneficiaries; a capability it did not previously possess.

The pilot scheme will exclusively cover students in public institutions, namely federal and state universities, federal and state polytechnics, and federal and state colleges of education.

President Tinubu had previously signed the Access to Higher Education Act, 2023 into law on June 12, 2023, enabling indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.

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