The Nigerian Education Loan Fund: Thoughtful Relief Or Burden In Disguise.

BY: Aniedu Chukwubuikem

The Nigerian Education Loan Fund (NELFUND) is a financial institution established to provide accessible, interest-free loans to eligible Nigerian students for higher education, vocational training, and skills acquisition.

The Nigerian government introduced NELFUND to help students pay for school. Many students struggle to afford education, so this initiative seems like a good idea. However, the main question remains: will NELFUND’s benefits outweigh its drawbacks?

The NELFUND was created to address the shortcomings of the previous Student Loan Act of 2023. NELFUND’s main goal is to offer financial assistance to eligible Nigerians, who are covering tuition fees, studying in recognized universities, colleges, and vocational training institutions across Nigeria.

According to Nigerian Tribune, NELFUND was really a divine intervention to many students who almost became dropout due to financial constraints.
According to a report by the Nigerian Tribune, there were lot of beneficiaries like: RAKAYAT Wasiu, who almost gave up on her dream and contemplated dropping out of school as a result of the difficulty she faces every day during her 100-level study for a degree in accounting at the prestigious University of Ilorin, Kwara State , Miss Wasiu, being an orphan, has to contend with so many things, including the high cost of accommodation, the increment in tuition and other charges by the university, the high cost of food items, and transportation, among others. All that, coupled with family challenges, were to force her to discontinue her education after her 100th grade. She, however, told the Nigerian Tribune that the establishment of the Nigerian Education Loan Fund (NELFUND) by President Bola Ahmed Tinubu has come as a divine intervention, encouraging her to remain in school to continue with her education. According to Miss Wasiu, her tuition for 200 Level were paid by NELFUND directly to the university’s accounts as institutional fees, while money for upkeep was paid to her personal account.

      THE  FOLLOWING ARE THOUGHTFUL RELIEF OF NELFUND :

Boost financial capabilities of students: NELFUND, strives to revolutionise higher education accessibility in the country by providing interest-free loans to eligible students, thereby breaking down financial barriers and empowering Nigerians to pursue their academic aspirations. There will no longer be an impediment to students willing to pursue better career prospects and economic opportunities.

Reduce the financial burden on students: The Nigerian Education Loan Fund also has the potential to reduce the financial burden of indigent students while in school, thereby allowing them to focus on their academics. The flexible repayment plan also affords the beneficiaries adequate time to offset the loan.

Increased enrolment:The financial assistance has lead to a significant increase in the number of students enrolling in tertiary institutions. The Nigerian Education Loan Fund (NELFUND) increases enrolment by providing access to financial aid for higher education, which reduces the financial burden on students and families. This allows more individuals to pursue higher education who might otherwise be unable to afford it. The fund is expected to facilitate a rise in the enrolment of indigent students, who would not have been able to realise their dreams of higher education.

Ensure higher graduation rates: Having access to NELFUND financial assistance reduces the incidence of students dropping out, leading to increased graduation rates and a more educated populace.It helps reduce the likelihood of students dropping out due to financial difficulties, leading to higher graduation rates.

Boost skilled workforce: The fund contribute to the creation of a skilled and diverse workforce.NELFUND offers loans that cover tuition, transport, upkeep, and starter tools for vocational training. This makes vocational training more accessible to those who might not be able to afford it otherwise.

Foster economic empowerment:NELFUND fosters economic empowerment by facilitating access to higher education for Nigerians, which in turn allows them to develop skills and knowledge that contribute to a more skilled and productive workforce, by implication driving economic growth. By removing financial barriers, the program enables individuals to pursue higher education, leading to better employment opportunities and higher earning potential. After graduation, the beneficiaries are expected to have acquired relevant skills leading to improved earning potential.

Irrespective of these thoughtful relief of NELFUND and testimonies of many beneficiaries, many citizens still argued that NELFUND is a burden in disguise. They claimed that NELFUND is anti-student, and it should be discarded. If students cannot be guaranteed that they will be able to get a decent-paying job to pay back, this will be a future burden to students, while some other citizens claimed that it is not even available to all students.

NELFUND is currently disbursing upkeep payments to eligible students. The Nigerian Education Loan Fund (NELFUND) has already disbursed payments to 293,000 students across 303 institutions. NELFUND is also actively working to improve the financial interface between itself and tertiary institutions to ensure greater transparency and efficiency in disbursements.

 Ultimately, the Nigeria Education Loan Fund (NELFUND) offers numerous benefits to students, including increased access to tertiary education, reduced financial burden, and economic empowerment. By providing financial assistance, NELFUND helps bridge the gap between aspiration and reality for many Nigerian students.

With initiatives like NELFUND, Nigeria is taking significant steps towards transforming its education sector and empowering future generations. By utilizing such opportunities, students can unlock their potential and contribute to the country’s growth and development.

Chukwubuikem writes from Nnamdi Azikiwe University Awka , Anambra State.