Starting from September, FG plans to commence the provision of student loans
The Federal Government is currently finalizing arrangements to initiate student loans, which are expected to be implemented between September and October 2023.
On Wednesday in Abuja, David Adejo, the Permanent Secretary of the Federal Ministry of Education, addressed reporters and revealed that President Bola Tinubu signed the Student Loan Bill into law.
This act fulfills a campaign promise made by President Tinubu. The bill, sponsored by Femi Gbajabiamila, the Speaker of the 9th House of Representatives, offers interest-free loans to financially disadvantaged Nigerian students.
Adejo further explained that the newly enacted law aims to facilitate accessible higher education for economically disadvantaged Nigerians by providing interest-free loans from the Nigerian Education Loan Fund.
He stated that the loan encompasses both private and public school students. Additionally, President Tinubu has given approval for a committee consisting of ministries and agencies to ensure the successful implementation of the loan program.
He explained that the purpose of the bill is to ensure that every Nigerian has the opportunity to pursue higher education through the establishment of the Higher Education Nigerian Bank.
"Taking lessons from previous mistakes, this bank will not simply collect loan applications. It will also function as a regular bank and ensure that loans are granted, as we have encountered issues with loan repayment in the past.
"The current legislation outlines the procedure, but I can confirm that the president has sanctioned the committee composed of ministries and agencies, and their meeting is scheduled for June 20.
"The president has also directed that by the start of the 2023/2024 academic session, which falls between September and October, he expects to witness the beneficiaries of these loans. Therefore, it is a significant commitment for us, and we must work diligently to finalize the process for individuals to access the loan," he stated.
The Permanent Secretary also announced the government's plan to establish a dedicated bank to manage the loan operations, emphasizing the implementation of an effective tracking system for the smooth functioning of the loan scheme.
He clarified that this initiative would cater to students in both private and public schools, and a new bank would be established specifically for this purpose.
"We will not utilize existing banks for this purpose. Instead, we will create a new bank that will be dedicated to addressing this need because using an existing bank won't suffice.
"Our intention is to ensure that the benefits of this program extend not only to those attending public schools but also to students in private schools who pay tuition fees. They too should have the opportunity to benefit.
"The loan is designed to support your educational pursuits and enable you to secure employment before commencing loan repayment. The recovery of the loan will only commence once you have obtained employment.
"Furthermore, we commend President Tinubu for his remarkable efforts. Our current president is a proponent of job creation, drawing from his extensive experience in the private sector. He has provided us with policy guidance, and job creation is one of his top priorities, even though it may not be possible to create jobs for everyone."
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