The Student Loan (Access to Higher Education) Bill was first introduced in 2016 by Femi Gbajabiamila, the immediate past Speaker of the House of Representatives. It was reintroduced in 2019 and received more attention from the National Assembly in November 2022.
On June 12, 2023, President Bola Tinubu signed the Bill into law, allowing for all Nigerian students who have secured admission into any Nigerian public university, polytechnic, college of education, or any technical and vocational education and training (TVET) school to apply for an interest-free student loan.
This development has generated mixed reactions among many stakeholders, especially in the education sector. Labour unions, civil society organizations, student bodies and other groups as well as individuals have lauded and also criticized the essence of the Bill.
The National Association of Nigerians Students (NANS) in a statement said, “Without saying much, the Student Loan Bill is a way forward for the educational system in Nigeria because it will assist students whose parents cannot afford to pay tuition fees to be able to pay with the loan.”
NANS however noted, “But as good as this is, there are some questions that need to be answered by the government.” Others have also cited some loopholes and so, raised questions concerning the Bill.
Some of those questions border on:
1. ELIGIBLITY
One of the areas that people have voiced dissenting views about the new law is the eligibility criteria for applicants/beneficiaries. The National President, Academic Staff Union of Universities (ASUU), Prof. Emmanuel Osodeke, in an interview with newsmen, said the Bill was ‘discriminatory’. In his words, “…It (the Bill) says it is only for children whose parents earn less than ₦500,000 per year. That means if your father earns more, you won’t benefit.”
Other people have also posed such question as, “How about students whose families earn up to ₦500,000 per annum, but nobody wants to invest in their education?”
Another area that people have questioned is the provision that only students of public higher institutions are eligible to apply. A parent, Mrs Rachael Oke told Emerald News that, “Some of us are taking the pains of paying exorbitant tuition for our children to attend private schools, not because we have the money, but because the public institutions are collapsed.
“Many parents are actually struggling to keep up. So, if the Bill excludes students in private institutions, it is not just a disservice to some citizens, it is also a way of undermining the contribution of the private sector to the growth of education in Nigeria.”
2. APPLICATION
According to the Bill, all applications must be submitted through the applicant’s bank to the Chairman of the Committee established under the Act.
Some of the documents required for the application include: a cover letter signed by the head of the student’s institution (vice-chancellors for university students, rector for polytechnic students and provost for students of colleges of education) and students affairs officer of the institution; student’s admission letter; credentials of two guarantors, among others.
Some Nigerians have said that the application process is rigorous. In our world of evolving technology, one would have expected a fast, simple and seamless process for such development. However, the reverse appears to be the case with the Bill.
A student, Ibrahim Audu said, “Why can’t students apply for the loan online? I mean, we’re in the 21st Century when the Internet has made everything easy. For me, this is not supposed to involve much paperwork; unless they intend to delay the process, from the onset.
3. DISBURSEMENT
There is no precision according to the Bill, as to how much a beneficiary will be eligible to access, instead, it states that, “disbursement shall be on the availability of funds.” In order words, there is no guarantee that the loan would always be readily and adequately accessible to students who need it.
The underlying implication of course, is that students who depend on the loan facility to take care of their financial demands in school, would automatically have their hopes dashed, whenever the government decides that there are not enough funds to give loans.
4. REPAYMENT
Repayment plan is another aspect of the Bill that have elicited concerns among Nigerians. Though the Law does not stipulate a period of time within which beneficiaries must conclude repayment of the loan given to them, it however, states that the repayment of the loan begins exactly two years after the completion of the participation in the one-year National Youth Service Corps (NYSC) programme (compulsory national service).
According to the Bill, a beneficiary shall remit 10 per cent of their income to the Fund at the end of every month. For self-employed individuals, 10 per cent of their total monthly profit shall be remitted as part of the repayment plans.
Meanwhile, it also states that defaulters risk a ₦500,000 fine, two years jail term or both when they fail to repay their loans. This is notwithstanding the lack of precision in the amount a beneficiary can access.
In the words of the National President of the Academic Staff Union of Polytechnics (ASUP), Mr. Anderson Ezeibe, the repayment plan is ‘not practicable.’ He said, “It says that students should refund the money two years after NYSC. But what is the provision for someone who is not working after NYSC? And will they all get jobs immediately after NYSC?”
NANS, the umbrella body of students in Nigeria also noted in its statement, “The ultimatum for repayment is not feasible. As we all know, there is no work anywhere, and most graduates don’t get work immediately. How will they pay it back? How will it work when most of our graduates do not get jobs? Is there any plan or opportunity for those who have no work two years after NYSC?”
All these boil down to a popular demand – that government should evolve policies and programmes to absorb and engage Nigerian graduates to reduce restiveness.
5. OTHER IMPLICATIONS
ASUU Chairman, Prof. Osodeke also expressed another concern with the Student Loan Bill, saying it would be a burden on beneficiaries. He said, “…Everyone knows our position on student loans because you will end up encumbering the children of the poor with loans and debt after graduating.”
On his part, Prof. Ini Uko, a former Deputy Vice-Chancellor at the University of Uyo said, “This means that tuition fees will go up. The subsidy for tertiary education will be removed. Vice chancellors will now be able to introduce tuition fees… “The truth is that we have to stop pretending that the government alone can continue to fund tertiary education. It is not possible.”
Another shortcoming that some have also identified with the new law is that it does not capture postgraduate students. According to an educationist, Zainab Umar, “Postgraduate students also need loan. In fact, they will appreciate it most because they already know the value of education. Also, they have higher chances of paying back quickly.”
IN SUMMARY, while the Federal Government has said that disbursement of the student loans would start by September/October, there is urgent need to address these issues before then, so that those who really need the loan won’t be disqualified, and those who benefit won’t be disadvantaged or shortchanged.
