NELFUND better than US, UK student loan systems, says UNIBEN VC

The Vice-Chancellor of the University of Benin, Professor Edoba Omoregie (SAN), has described the Nigerian Education Loan Fund as one of the most significant public policy initiatives in the country since independence, saying its model is better than those operated in countries such as the United States and the United Kingdom.

Omoregie, however, said he was not impressed by the level of interest shown so far in accessing the fund.

He said NELFUND was unique in its application process, provision of a moratorium before repayment begins and the percentage of income deducted when beneficiaries start repaying, adding that the scheme was almost like an education grant.

He commended President Bola Tinubu for signing the initial student loan law introduced under former President Muhammadu Buhari and subsequently repealing it to introduce a new version through an executive bill, which he described as friendly to students and their sponsors.

He said, “NELFUND is like manna from heaven. It is one of the most significant public policy initiatives ever introduced into this country since independence. I have to commend President Bola Tinubu for signing the NELFUND bill.

“There was an initial version which was developed during the time of President Buhari, but it was never signed into law, to the credit of President Tinubu, he signed the first one into law and then when he saw that there were some operational defects, he decided to repeal and then approach the parliament to enact a new one early 2024.”

Omoregie, who said he was part of the technical team involved in reviewing the initial version, said several provisions had been removed to accommodate concerns raised by the former President, a process he said almost diluted the bill’s core value.

“They were talking about guarantees that people had to give when they take the facility. They even limited the amount and there was nothing like upkeep. President Tinubu didn’t think it was good enough and he had to bring a new version.

“I am sure even from outside the country now they will come and study sooner than later because unlike many of the student loans that you have in America, UK and all that which makes them skeptical, this one is an interest free loan.

“Maybe they should even use another word instead of calling it a loan. This is more like a grant, there is a moratorium that until you start working, nobody is going to bother you and when you start working nobody is going to ask you to pay in the bulk

“Rather, they would just take just a small portion of your emolument and everything will work out in such a way that you not be burning out.”