Higher Education Loan Policies in Africa: A Comparative Study of NELFUND in Nigeria and the Students Loan Trust Fund (SLTF) in Ghana

• Victor Iheanyichukwu Asiegbu

  Department of Political Science, Abia State College of Education (Technical), Arochukwu, Abia State

• Idika Kalu Mba

  Department of Political Science, Abia State College of Education (Technical), Arochukwu, Abia State

The increasing cost of tertiary education, combined with limited public resources and widespread household financial constraints, has made student-loan programmes an increasingly important component of higher-education financing in Africa. This study looks at and compares the Nigerian Education Loan Fund (NELFUND) and the Students Loan Trust Fund (SLTF) of Ghana. The study focuses on discovering the similarities and differences between the eligibility criteria and applications, achievement and disbursement features of NELFUND in Nigeria and the Students Loan Trust Fund in Ghana and is based on a single research question, which is: What are the similarities and differences between the eligibility and applications criteria, achievement and disbursement features of NELFUND in Nigeria and the disbursement features of the Students Loan Trust Fund (SLTF) in Ghana? The study adopts the qualitative comparative policy-analysis approach based on legislation, official programme documents, administrative statistics and relevant empirical literature. The data were collected through secondary sources which included Nigeria's Students Loans legislation, operational materials of NELFUND, Ghana's Students Loans Trust Fund Act of 2011, Ghana's Students Loans Trust Fund (Amendment) Act of 2022, World Bank education statistics and peer-reviewed journal articles. The effect of loans on student development and student learning was analyzed using Human Capital Theory. The study argues that NELFUND currently provides stronger protection against immediate student indebtedness, while Ghana offers important lessons in repayment administration, institutional continuity and recovery. The study amongst others recommended that: the government of both countries should publish detailed annual loan-performance reports and that the government should protect low-income borrowers by attaching interest subsidies, and repayment postponement.

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