Tinubu signs national students loan amendment bill into law

President Bola Tinubu has approved the National Students Loan Amendment Bill.

This development was confirmed in a post made by NTA on Wednesday, April 3, 2023.

The bill, initially signed in June 2023, aims to provide financial aid to Nigerian tertiary students.

However, its implementation has been delayed due to various challenges. Significant amendments were made to the bill before Tinubu's final endorsement.

Eligibility, terms and conditions of national student loan

The proposed legislation introduced by Senator Bamidele Opeyemi from Ekiti Central Senatorial District in Ekiti State seeks to enhance the implementation of the Higher Education Student Loan Scheme in Nigeria.

It aims to address various concerns, such as the management framework of the Nigerian Education Loan Fund, eligibility criteria for applicants, purposes of the loans, funding channels, and protocols for loan distribution and repayment.

The proposed Bill establishes the Nigerian Education Loan Fund (NELFUND) as a legal entity that can sue and be sued independently.

It grants the Fund authority to acquire, manage, and dispose of property to effectively carry out its functions.

Essentially, the Bill empowers NELFUND to provide loans to eligible Nigerians for their education expenses, including tuition, fees, and living costs while studying in approved tertiary institutions and vocational training centres within Nigeria.

Unlike the previous 2023 Act, which placed the Fund's administration under a Special Committee led by the Governor of the Central Bank of Nigeria, this Bill suggests changes to the management structure.

Moreover, the proposed Bill removes the requirement for applicants or their families to have an income below N500,000 annually, as the current law stipulates.

According to Vanguard, it expands eligibility by allowing students from federally or state-established tertiary institutions and government-approved vocational institutions to apply, with the specific criteria to be defined by the Fund.

Additionally, unlike the 2023 Act, which restricted loan requests to tuition fees only, the new Bill enables applicants to seek loans for a broader range of institutional expenses and maintenance allowances.