FG To Disburse Student Loans Directly To Institutions

The Executive Secretary of the Nigerian Education Loan Fund, Akin Sawyerr, has announced that student loans will be disbursed directly to applicants’ institutions to prevent diversion.

He also noted that loan repayment will commence two years after the completion of the mandatory National Youth Service Corps.

Sawyerr made this disclosure during a meeting with Chris Maiyaki, the Executive Secretary of the National Universities Commission, in Abuja.

According to a transcript obtained by Sunday PUNCH in Abuja, Sawyerr outlined the funding sources for NELF, which include one percent of all federal government profits from oil and minerals, as well as one percent of taxes, levies, and duties from various agencies.

Sawyerr mentioned that the Education Loan would receive funding from donations, gifts, endowments, and revenue from other sources.

Meanwhile, the Academic Staff Union of Universities, Federal University of Technology, Akure chapter, has reiterated its opposition to the proposed student loan scheme by the President Bola Tinubu-led administration.

The lecturers criticized the scheme, alleging that it would deprive public universities of funding and burden Nigerian students with permanent debt.

Prof Pius Mogaji, the Chairman of ASUU at FUTA, expressed these concerns during a scholarship award ceremony for brilliant and indigent students of the institution on Friday.