Student Loan, Unanswered Questions -By Muhammad Yasin Yahaya

The student loan bill, as signed by Mr President, is indeed a new dawn for Nigerian students. We must continue to praise and laud the government for the bold move to make tertiary institutions accessible for the children of the less privileged. It is quite a commitment towards the right direction as it would go a long way in assisting the students.

As an advocate of good governance, I personally commend Mr President for this initiative, and I congratulate him for keeping his promise on reviving the dilapidating educational system of our country. To be most honest, I support the move because I believe this is a way forward.

After careful study of the bill that was signed by Mr President, I must admit that the intentions of Mr President are sincere, but the content of the bill poses many questions that require answers.

First of all, let me briefly explain what ‘student loan’ is. Student loans are a type of financial aid provided to students to help them pay for their education expenses, such as tuition fees, books, supplies, and living expenses. These loans are specifically designed to assist students who may not have the means to cover the entire cost of their education. Student loans are almost a global phenomenon, with every developed or developing country keying into it because of the benefit of hope it gives to the less privileged.

However, the student loan bill of 2019, as signed, stipulates the eligibility of applicants, disqualifications, methods of application, repayment, and consequences of defaults. According to Section (5) of the bill, a bank shall be established and referred to as the ‘Nigeria Education Bank’ with its role and functions in Section (6).

The benefits of the student loan act are as follows: The Act provides an interest-free loan for indigent Nigerian students in which beneficiaries will only pay back the exact amount they collect. The Act offers loans for indigent Nigerian students seeking higher education in government-owned universities, polytechnics, and colleges of education in the country.

The Act enables all indigent Nigerian students to have equal rights to access the loan without any form of discrimination arising from gender, religion, tribe, position, or disability of any kind. The Act states that the loan shall be given to indigent Nigerian students only for the payment of tuition fees.

Furthermore, the student applicants applying for loans under the Act shall apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions:

The student applicants must have secured admission into any of the Nigerian universities, polytechnics, colleges of education, or any vocational school established by the Federal Government or the government of any state of the Federation.

The student applicants’ income or family income must be less than N500,000 (five hundred thousand naira) per annum.

The student applicants must provide at least two guarantors: each of the guarantors must be a civil servant of not less than level 12 in the service; or a lawyer with at least 10 (ten) years post-call experience; a Judicial officer; or a Justice of Peace.

Having seen the various sections of the bill, it is imperative to question some of the issues arising out of the bill and to educate the public. We are indeed happy to have seen this happening at the time we need it most. But from all indications, the content is not really going to make any impact unless some amendments are made in the process, and we believe that the government is committed to the process.

According to section 20 subsection 2 (B), the guarantor must sign that he or she would take responsibility in case of a default. Now, how many guarantors would be ready to take responsibility if the applicant eventually defaults?

Section (19) of the loan application states that any applicant will be disqualified if they meet any of the following conditions:

They have been proven to have defaulted on a previous loan granted by any organization.

They have been found guilty of exam malpractice by any school authority.

They have been convicted of a felony or any offense involving dishonesty or fraud.

They have been convicted of drug offenses.

Any of their parents have defaulted on a student loan or any loan granted to them.

For students who owe Palmpay, etc., the aforementioned section also disqualifies them. This raises the question of whether children should be held responsible for their parents’ actions.

In Section (17), Subsection 1 (A), it is stated that the loan will be used to cover tuition fees. However, as far as I know, our tertiary education system does not currently have such a provision. Will this be introduced?

Furthermore, the repayment method outlined in the loan agreement is problematic. We are all aware of the significant issue of unemployment in our country. Section (22), Subsection (1) states that beneficiaries must start repaying the loan two years after completing the National Youth Service Corps (NYSC). I find this laughable because I personally know individuals who, even five years after completing NYSC, were unable to secure employment. So, where are the jobs? What happens if someone is unable to find a job and repay the loan? Does it mean they will go straight to prison?

These are just a few of the questions that need answers. How long will it take for all of these to be implemented, and will it truly have an impact on our educational system? As watchdogs for good governance, we will closely monitor the process to ensure that it doesn’t become another means to misappropriate public funds.

May God bless Nigeria.

Muhammad Yasin Yahaya,
Ahmadu Bello University Zaria,

Email;muhammadyasin3890@gmail.com