Writer: Olivia Nnorom
President Bola Tinubu has signed the student loan Bill into law, fulfilling the promise he made at a campaign outing in London, United Kingdom.
The presidency announced this in a video it released on Monday evening while the President was surrounded by some aides and allies including: Femi Gbajabiamila, Chief of staff, and Dele Alake.
The bill, which passed a second reading at the House of Representative on May 25, 2023, entails that provisions will be made for funds to be domiciled in the ministry of Education, and access will only be enabled for indigent students of Tertiary institutions, at interest free rates from the Nigerian loan fund.
Reacting to the bill, Adejuwon Emmanuel, the coordinator, National Association of Nigerian Students (NAN), zone D, said the student loan is a way forward to the educational system in Nigeria, because it will assist students whose parents cannot afford to pay tuition fee to be able to pay with the loan.
However , Adejuwon raised concerns that seem unrealistic “but as good as this is, there are some questions that need to be answered by the government. The repayment ultimatum is not feasible. As we all know that there is no work anywhere and most graduates don’t get work immediately, how will they pay back? Is there any plan for those who don’t get work two years after NYSC?”
On further reactions, Emmanuel Osodeke, National President, Academic staff Union of Universities (ASUU), said the initiative will end up encumbering the children of the poor with loans and debts after graduating, which is discriminatory. He also raised concerns on one of the requirements which stated that the student loan is only for children whose parents earn below N500, 00 per annum. That means if your father earns more, you won’t benefit”
Anderson Ezeibe, National president, Academic Staff Union of Polytechnics who noted that he had not studied the bill and would not want to react on the surface said “ but i have seen one area that will not be practicable”. He stressed that most graduates do not get jobs after NYSC, therefore, refunding the loan two years after NYSC is not practicable.
This news also provoked mixed reactions from Nigerians on different social media channels. Some were happy about the development stressing that the President’s campaign speeches were not mere “political “It’s alright” while others registered their dissatisfaction, questioning the level of thought that went into the signing of the bill.
@Aibinuola, a twitter user while reacting to ASUU’s sentiments said “how? Interest free school loan to pay back when you start working” how’s that a burden on the poor? ASUU et al are just incorrigible elements”
@Bakarisaddam, another user said “why are people playing this card as if it’s mandatory to take the loan?”
@Ajayimickiss expressed hope on the initiative while buying ASUU’s sentiments “can get what (Academic lecturers, ASUU, ASUP) are trying to pin points on. I hope the student loan act would be the same method like the US “guaranteed student loans, Pergrant, Stanford loans etc’ in various institutions of higher learning nationwide.
The bill stated that loan defaulters will be penalized by the system “defaulters, or anyone aiding them shall be liable, upon conviction, to two years imprisonment, or a fine of N500, 000 or both”,
Reacting to the this, @Ill_nojie, a twitter user said “from graduate to ex-convict, are you trying to deny the unemployment/underemployment rate and the fact that most of the so called young entrepreneurs were pushed by the system and still depend partly or heavily on their parents or guardians?”
Another reaction on the penalty from @iAmDTvictor stated that improving the education sector, meeting Asuu”s age long demands… seem a better deal than the student loan initiative.
@delicate_onyx highlighted the reality of taking a student loan, with the opinion that it is more of a financial trap than an escape “most American students spend their adult life after graduation, paying the loans they took as students. Then, the next half paying for mortgage and stuff’
One twitter user described this as a case of putting the cart before the horse, in his words “collect loan, no available job opportunity to work and pay back the loan”.
Another user raised concerns about how to hold defaulters accountable “Another ill thought scheme just like Tradermoni. Which records do you have of the students? How will you ensure repayment/ how will you catch the students when they Japa”
A Watsapp user who spoke to TechEconomy on Tuesday, said that even if the unemployment condition is tackle and all things being equal, the level of distrust and corruption associated with Nigerian politicians is enough for anybody to kick against this student loan initiative. According to him, there is most likely going to be a power scheme in accessing the loan.
Muhammed Murtala Umar, on facebook said “we expect free education not Student’s loan in Nigeria. Getting a job after NYSC is not easy. Only 10% secures the offer.”
Abdulazeez ojulari said ‘the loan is better established for the graduates without job than for the targeted students who should be placed on scholarship”
Another Facebook user, Hamza Ahmed, said that it is a welcome development but the conditions are so strict in such a way that it is hard for many students to meet the criteria.
Usman Abore who also commented on facebook said “the conditions attached to accessing the loan are not favourable to some students from the north as they will face shortage of guarantors especially the lawyers and judicial staff,”
“How many students per guarantor will be of concern? The cut-off annual income, does it apply to one student or even if you have more in the family”
Other reactions were focused on the possibility of raising tuition fees that might affect some students who might not be able to access the loan., as well as those who made definite statements about the need for more prison yards, stressing that the labour market will definitely usher debtors to reality on ground.
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