NELFUND Urges Student Leaders to Champion Interest-Free Loan Scheme

The Nigerian Education Loan Fund (NELFUND) has called on student leaders across tertiary institutions to take proactive ownership in promoting the interest-free student loan scheme aimed at ensuring financial access to higher education.

Speaking during a Stakeholders Engagement Session and Technical Workshop held in Abuja, NELFUND Managing Director, Mr. Akintunde Sawyerr, emphasized the need for students to drive awareness and support for the initiative. The session, now in its fourth day, gathered key stakeholders and student representatives from across the country.

Sawyerr reaffirmed the fund’s commitment to eliminating financial barriers and creating equal learning opportunities for all Nigerian students, in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes education, inclusion, and empowerment.

He encouraged student union leaders to actively engage their peers, provide constructive feedback, and help fine-tune the scheme’s implementation to ensure its success.

Also speaking at the event, NELFUND Executive Director of Operations, Mr. Iyal Mustapha, cautioned institutions against delays in verifying student applications. He noted that such delays significantly impact the timely disbursement of funds and undermine the scheme’s effectiveness.

Mustapha urged student leaders to mount pressure on school authorities to facilitate quicker verification processes, highlighting that the scheme was specifically designed to reduce student dropout rates caused by financial hardship.

He further explained that the loan covers tuition fees and monthly stipends, all without interest, collateral, or coercive repayment tactics. Repayment begins only two years after the completion of the National Youth Service Corps (NYSC), and only if the beneficiary is gainfully employed.

In a show of empathy, Mustapha also disclosed that the loan is automatically canceled in the event of a beneficiary’s death or permanent disability. He advised students to cross-check with their institutions to confirm fund receipts, as some schools have failed to communicate the disbursement status to their students.

The engagement session witnessed active participation from Students Union leaders and representatives of the National Association of Nigerian Students (NANS), as the Fund continues to drive stakeholder involvement in ensuring the success of the initiative.