Why We Have Decided Not To Pay Student Loans Directly To Applicants’ Personal Accounts – FG

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

Sawyerr disclosed that the reason for this was to avoid any form of diversion.

The secretary stated this during a meeting with the Executive Secretary of the National Universities Commission (NUC), Chris Maiyaki, in Abuja.

He noted that those who obtain the loans would be made to repay two years after completion of the mandatory National Youth Service Corps (NYSC).

According to a transcript of the meeting seen by Naija News in Abuja, Sawyer said that the sources of NELF funding included; one per cent of all profits accruing to the Federal Government from oil and other minerals; one per cent of taxes, levies and duties accruing from the Federal Inland Revenue Service, Nigeria Immigration Service, Nigerian Custom Service; Education Bonds and Education Endowment Fund schemes.

He also stated that the Education Loan would also be funded through donations, gifts, endowment and revenue accruing from any other source.

However, lecturers under the auspices of the Academic Staff Union of Universities, the Federal University of Technology, Akure, chapter, has reiterated its rejection of the proposed students’ loan scheme initiated by the President Bola Tinubu-led administration.

The lecturers described the scheme as a way to starve the public universities of funds, also saying if implemented, it would further stifle Nigerian indigent students.