Student Loans to be Disbursed Directly to Institutions, Says FG

The ASUU chairman, Prof Pius Mogaji, criticized the scheme, stating it would starve public universities of funds and burden students with permanent debt.

Student Loans to be Disbursed Directly to Institutions, Says FG

The Executive Secretary of the Nigerian Education Loan Fund, Akin Sawyerr, announced that student loans will be disbursed directly to institutions to prevent diversion. He emphasized that borrowers will start repaying their loans two years after completing the mandatory National Youth Service Corps.

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During a meeting with the Executive Secretary of the National Universities Commission, Chris Maiyaki, in Abuja, Sawyerr outlined the sources of funding for the Nigerian Education Loan Fund. These sources include one percent of all profits from the Federal Government, taxes, levies, duties, education bonds, and donations.

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Meanwhile, the Academic Staff Union of Universities (ASUU) at the Federal University of Technology, Akure, reiterated its rejection of the proposed student loan scheme by the President Bola Tinubu-led administration. The ASUU chairman, Prof Pius Mogaji, criticized the scheme, stating it would starve public universities of funds and burden students with permanent debt.