The Executive Secretary of the Nigerian Education Loan Fund, Akin Sawyerr said student loans will be disbursed directly to the institutions of applicants to avoid diversion.
Sawyerr made this known during a meeting with the Executive Secretary of the National Universities Commission, Chris Maiyaki in Abuja.
He said individuals who obtain the loans will be made to repay their loans two years immediately after completion of the mandatory National Youth Service Corps.
According to a transcript of the meeting obtained by newsmen 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.
Meanwhile, the lecturers under the auspicies of the Academic Staff Union of Universities, the Federal University of Technology, Akure, chapter, has again reiterated its rejection of the proposed students’ loan scheme initiated by the President Bola Tinubu-led administration.
Chairman of ASUU of the FUTA, Professor Pius Mogaji, stated this during an award of scholarship to some brilliant and indigent students of the institution.
He described the scheme as a way to starve the public universities of funds, adding that if implemented, it would further stifle and keep students in permanent debt.