What You Don't Know About the Newly Revised 2024 Student Loan Act Signed by President Tinubu

The Act includes provisions for debt forgiveness in cases of death or circumstances preventing repayment.

Apr 5, 2024 - 11:45

What You Don't Know About the Newly Revised 2024 Student Loan Act Signed by President Tinubu

President Bola Tinubu has officially enacted the newly revised 2024 Student Loan Act, replacing the previous 2023 legislation and ushering in a comprehensive framework aimed at enhancing access to higher education and vocational training in Nigeria. The Act, also known as the Access to Higher Education Act, 2024, introduces several significant changes to the student loan system, addressing previous shortcomings while expanding coverage to accommodate a broader spectrum of students and learners.

Here are ten key highlights of the 2024 Student Loan Act:

1. Establishment of NELFUND:The Act establishes the Nigeria Education Loan Fund (NELFUND) as a corporate entity empowered to provide loans and support for educational expenses.

2. Loans for Education Expenses: NELFUND will offer loans covering tuition, fees, charges, and living expenses to eligible Nigerians pursuing higher education or vocational training within the country.

3.Funding Structure:The Act outlines a funding mechanism whereby 1% of taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS) will be allocated to a General Reserve Fund to finance the student loan program.

4.Removal of Family Income Barrier:The requirement for applicants' family income not to exceed N500,000 per annum has been eliminated, ensuring broader eligibility for student loans.

5. Elimination of Guarantor Requirement:The need for applicants to provide guarantors, as per the 2023 legislation, has been abolished, streamlining the loan application process.

6.Inclusion of Skill-development Programs:The Act extends loan eligibility to individuals pursuing vocational or technical skills training in government-owned institutions.

7.Parental Loan History Exclusion:Applicants are no longer required to have a parent with a loan history to qualify for the student loan.

8.Commencement of Repayment:Loan repayment by beneficiaries will commence two years after completing the National Youth Service Scheme (NYSC).

9.Penalty for False Statements:Provision is made for penalties, including imprisonment, for individuals providing false statements to NELFUND.

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10. Debt Forgiveness:The Act includes provisions for debt forgiveness in cases of death or circumstances preventing repayment.

In conclusion, the enactment of the revised Student Loan Act marks a significant milestone in Nigeria's efforts to expand access to education and skill development. By addressing previous limitations and introducing comprehensive reforms, the government aims to empower Nigerian youth, foster national development, and create a pathway for economic growth.