News
10 things to know about the newly revised 2024 Student Loan Act
10 things to know about the newly revised 2024 Student Loan Act
President Bola Tinubu recently signed the 2024 newly revised Student Loan Bill into law, thus repealing the earlier 2023 Student Loan legislation with immediate effect.
The new Student Loan Act also known Access to Higher Education Act, 2024, aimed to address some of the loopholes of the previous Student Loan law while introducing new and comprehensive coverage for those seeking tertiary education or technical and vocational skills development.
In this analysis, Newstrends explores key facets of the Act and their impact on Nigerian students.
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Below are ten things to know about the 2024 Student Loan Act
- Establishment of NELFUND: First and foremost, the Act stipulates the establishment of the Nigeria Education Loan Fund (NELFUND) as a corporate body that can sue and be sued in its name and has the power to acquire, hold, and dispose of movable and immovable property for the purpose of its functions.
- NELFUND to provide loans to qualified Nigerians for tuition, fees, charges, and upkeep: The fund is designed to offer loans to eligible Nigerians, covering tuition, fees, charges, and living expenses for their education in recognized higher education and vocational training institutions within Nigeria.
- Set Up Structure for Funding NELFUND: The Act also stipulates the process and structure through which NELFUND will be funded. According to the 2024 Student Loan Act, the student loan program will be financed by allocating 1% of all taxes, levies, and duties that the Federal Inland Revenue Service (FIRS) collects and that go to the Federal Government, directing these funds to a General Reserve Fund.
- Removal of Family Income Barrier: Prior to the enactment of the 2024 Student Loan Act, the family income of an applicant was a determining factor for loan approval. The applicant’s family income must not exceed N500,000 per annum. Under the revised law, however, this requirement has been removed, and family income will no longer be a prerequisite for eligibility for the student loan.
- Removal of Guarantor Barrier: The 2023 Student Loan Act stipulated that an applicant must provide a minimum of two guarantors. The guarantors must fall into one of the following categories: (i) Civil servants of at least level 12 in the service, (ii) Lawyers with a minimum of 10 years of post-call experience, (iii) Judicial officers, or (iv) Justices of the peace. The 2024 legislation has no such requirement.
- Loan to include Skill-development Programs: According to the 2024 Student Loan Act, application is not restricted to students in tertiary institutions alone, but also those seeking skill-development programs. The 2024 Act is inclusive to those who want to learn vocational or technical skill in a government-owned institution, but do not have the resources to do so.
- Removal of Parents’ Loan History as a Prerequisite: The Act also stipulates the removal of parent’s loan history as a prerequisite for securing the loan for eligible candidates.
- Beneficiaries to begin repayment 2 years after NYSC: The revised law also stipulates that recovery process from beneficiaries of the loan scheme would commence two years after the National Youth Service Scheme (NYSC).
- Punishment for filing false Statement to NELFUND: The newly revised Student Loan Act also stipulates punishment for those who provide false Statement to the Fund. Such person under this section is guilty of a felony and is liable to imprisonment for three years.
- Debt Forgiveness: Lastly, the Act offers a Debt Forgiveness clause in the event of death or acts of God causing inability to repay. In sum, the presidential spokesperson, Ajuri Ngelale, noted that the updated Act addressed the hindrances in the initial version, setting the stage for safeguarding Nigeria’s prospects. According to him, it makes it possible for citizens to fund their studies, learn vital skills, and play a role in national growth.
10 things to know about the newly revised 2024 Student Loan Act
Community
Monarch Dies Shortly After Being Rescued From Kwara Kidnappers
The Onigbesi of Igbesi Land in Kwara State, Oba Moses Oyinloye Iwedunmoye I, has died days after he was rescued from kidnappers.
The monarch passed away in the early hours of Saturday at a hospital, according to his son, Prince Olasunkanmi, who said his father had been receiving treatment following a brief illness.
“Yes, the news is true. He died after a brief illness following his release. We took him to the hospital, hoping he would survive, but he died there very early this morning,” Olasunkanmi said.
Oba Iwedunmoye was abducted on August 22 when armed men invaded Igbesi community in Isin Local Government Area.
He regained his freedom five days later after security forces launched an operation around the Elerin/Ijomu-Oro area, where three kidnapped victims were found.
The rescue followed a report received at the Oro Police Station from a vigilante member, who alerted authorities after one of his colleagues was shot while operating in the bush.
A combined team of police officers, soldiers and vigilantes was subsequently deployed to the area.
Police said the suspected kidnappers engaged the team in a gun battle after spotting the advancing operatives. One alleged kidnapper was killed during the exchange, while others escaped into the surrounding area.
The security team continued the search and eventually located the three victims, who were evacuated for medical treatment.
News of the monarch’s death was announced by Bisi Fakayode, National President of Omo Ibile Igbomina, who mourned the traditional ruler and prayed for the repose of his soul.
The circumstances surrounding the monarch’s illness and death have not been publicly disclosed beyond his family’s account that he fell ill after his release.
News
Police Arrest Woman Over Alleged Drug Trafficking in Delta
Police Arrest Woman Over Alleged Drug Trafficking in Delta
A 40-year-old woman, Joy Anthony, has been arrested by the Delta State Police Command over alleged involvement in the illegal drug trade.
Police said operatives attached to the Special Anti-Kidnapping Unit carried out the arrest in Agbor, Ika South Local Government Area, following intelligence received about suspected drug-related activities.
According to the command’s spokesperson, Bright Edafe, officers subsequently obtained and executed a search warrant at Anthony’s residence in Agbor-Obi.
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The search reportedly resulted in the recovery of several suspected illicit substances, including tramadol, codeine, swinol, Canadian loud and weeds suspected to be Indian hemp.
The suspect and the recovered exhibits have been taken into police custody as investigators continue to establish the circumstances surrounding the alleged offence.
Edafe said Anthony would be prosecuted after the investigation is completed.
Police have not disclosed the exact quantities of the substances recovered.
Police Arrest Woman Over Alleged Drug Trafficking in Delta
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