Across the world, the aim of student loan or student aid is to increase opportunities for access to higher education. Countries such as the United States, Germany, South Korea, and Australia are a good model of student aid.
The introduction of the Nigeria Education Loan Fund (NELFUND) popularly known as student loan by the Government of Nigeria aligns with education policies of some advanced countries that don’t joke with education.
Here is a comprehensive list of countries around the world that have established student aid for undergraduate students to support their studies:
United States
In the U.S., student loan is a reliable funding for many undergraduate students under which 43.5 million students have benefited at the end of 2022, according to a report by bestcolleges.com
Although there are many credit facilities available for students, the Federal student loans, which came into being through the Higher Education Act of 1965, have many benefits compared to other options. Its friendly and fair interest rate make them the most popular among students in the United States.
Canada
The Canada Student Loans Program (CSLP) is dated back to 1964. Student aid is a big deal in the country that is why the Canadian government and the provincial governments work with each other to offer grants and loans to students of all categories, including undergraduate and postgraduate students.
Canada makes it easy to apply because applicants are meant to begin their application process from their province or territory of residence, according to information obtained from the Government of Canada official website at canada.ca/en/.
The provincial and territorial student aid offices are located in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, and Yukon.
Australia
Formerly known as Higher Education Contribution Scheme (HECS), the Higher Education Loan Programme (HELP) in Australia or known as HECS-HELP loan was established on January 1, 1989, following the recommendations by the Wran Committee’s. The Australian government places huge emphasis on students’ access to education funding.
France
There are many education-related grants in France, however, the government-backed student loan is provided through the Centre régional des œuvres universitaires et scolaires (CROUS), and Établissement public à caractère administratif.
Established in 1955, the CROUS is responsible for Student Finance France, where millions of students have benefited.
Germany
The Government of Germany not only provides loans to undergraduates, but also covers high school and second path education students Bundesausbildungsförderungsgesetz (BAföG) which came into being under the Federal Training Assistance Act in 1971.
Beneficiaries of BAföG loans in Germany are given the privilege of repaying their loans only after they exceed a certain income level after graduation. They get half at zero-interest and half as grant money.
Thailand
There are two major government-backed student loans in Thailand: 1) the Student Loan Fund (SLF), established in 1996 and 2) The Thai Income Contingent Allowance and Loan system (TICAL).
TICAL is targeted at students whose household income is less than 200,000 baht (approximately US$ 6,250) per year, according to a paper published by The Tokyo Foundation for Policy Research.
Hong Kong
Hong Kong as a special administrative region of China lays much emphasis on funding higher education, no wonder the region continues to expand the scope of coverage of its student aid since student loan was introduced in the region in 1969.
At the time of publication, the Student Financial Assistance Agency, which was established in 1990, now coordinates the administration of the student loan scheme.
United Kingdom
The UK’s Student Loans Company was established 1989, but the Education Act of 1962 has been providing support for living costs.
The UK has one of the robust student loan systems, despite some of the complaints surrounding it.
New Zealand
New Zealand’s Student Loan Scheme (SLS) was established in 1992, covering tuition fees and upkeep fees (living costs) at zero interest. Provision is available for part-time students, which covers only tuition fees.
Collection of the loan is done by New Zealand tax authority when the income of the beneficiary is above the minimum threshold. Deduction is done by the employers and remitted to the New Zealand tax authority.
Nigeria
The first student aid in Nigeria was administered by the Nigerian Students Loan Board (NSLB) in 1972. It has undergone several modifications until the present one known as the Nigeria Education Loan Fund (NELFUND), which officially opened its application portal on May 24, 2024.
The loan not only caters for tuition fees (institutional loan) of undergraduate students, it also makes provision for students to get upkeep allowance in form of pocket money to cater for other needs of students.
It is designed in such a way that repayment by beneficiaries is simplified at no-interest rate when they get a job after graduation.
The government-backed student loan in Nigeria is only available for undergraduates in government-owned institutions. It doesn’t cover students in private institutions and post-graduates.
South Korea
The Korea Student Aid Foundation (KOSAF) was established in May 2009 and charged with the responsibility of disbursing education aid to students.
The Government of South Korea believes that no student should drop out of school for financial reasons.
India
On August 15, 2015, the Government of India launched a student loan portal dubbed “Vidya Lakshmi”. Today, India’s student aid works in collaboration with India Banks’ Association in the disbursement process.
During the early years of launch, five financial institutions in the most populous country (more than 1.44 Billion people) including IDBI Bank, SBI, and Bank of India integrated their system with the Vidya Lakshmi education loan portal, giving students access to education loans.
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