Ayo Ola
An Administrator and Special Consultant on Disability Matters, at Adeyemi College of Education, Ondo State, Mr Gbenga Joseph Akinbolade, has lauded President Bola Tinubu for assenting to the Students Loan Fund (SLF) Act.
President Bola Tinubu on Monday (June 12, 2023) signed into law a bill to establish a Students Loan Fund (SLF) to provide interest-free loans to Nigerians seeking higher education.
The bill was sponsored by the immediate past Speaker of the House of Representatives, Femi Gbajabiamila, who now is Chief of Staff to President Tinubu. The bill was introduced in 2016 as part of measures towards addressing the funding gaps in Nigeria’s tertiary education subsector.
Akinbolade, who in a statement, said the loan scheme was timely, also proffered strategies for its successful implementation.
His statement was titled: E*FFECTIVE PROCESS ON HOW THE STUDENTS’ LOAN SCHEME WOULD WORK WITHOUT THE FINE OF JAIL TERM AND ACCUMULATED DEBT.
Below is the statement:
Since assuming office on May 29th, 2023, President Tinubu has made significant strides in Nigeria. One of his key promises was to reform the education sector and reduce the frequency of strikes. On June 12th, 2023, he signed the Student Loan Bill into law, a development that deserves recognition and support.
The Student Loan Act is noteworthy as it provides students in public federal and state tertiary institutions with access to loans to pay for their tuition fees. These loans are to be repaid within two years after completing the mandatory National Youth Service Corps (NYSC) program. While some Nigerians have criticized the scheme, arguing that it should have been structured as a grant to eliminate the need for repayment, they overlook the fact that grant disbursement has been in place for a long time but is highly competitive due to stringent requirements such as high CGPA and competitive exams. Only a few students can access such grants.
Some critics also express concerns about students’ ability to repay the loans, particularly if they are unable to secure employment after completing their service. However, as an advocate of love and progress, I admire this initiative by the president. With the right policies in place, the student loan scheme can become one of the best initiatives of his administration.
For example, the requirement for students to provide a guarantor who is a civil servant of at least a Level 12 officer or a lawyer should be reconsidered. This criterion is unnecessary and may deter individuals from lower-income backgrounds from accessing the loan. Many students come from families with very limited financial resources, making it difficult for them to find civil servants or pay for legal services. It would be more sensible if any close relative, such as parents or guardians, could stand as a guarantor, regardless of their income level.
Additionally, the board responsible for overseeing the loan scheme should ensure that only students in their 200 level and above are eligible. This measure is necessary to distinguish between academically inclined students and those who may seek admission solely to obtain the necessary documents to apply for the loan and then disappear. Students in their 200 level or higher would need to provide documents proving their studentship.
To address the concerns raised by critics and ensure equal access to the student loan scheme, it would be beneficial to involve approved Nigerian banks in the loan process. This approach would make the scheme accessible to everyone, including students from diverse socioeconomic backgrounds. Here’s a proposed process:
1. Application through Approved Nigerian Banks: Students would apply for the loan by obtaining the necessary forms from approved Nigerian banks. These banks are accessible to all individuals, regardless of their financial status. This eliminates the perception that only the children of the rich can access the loan.
2. Accurate Completion and Verification: Students would diligently complete the loan application forms, ensuring accuracy in the provided information. The forms would also require appropriate signatures from the necessary individuals, such as parents or guardians.
3. Direct Payment to Educational Institutions: Once the forms are submitted, the bank would facilitate direct payment of the tuition fees to the respective educational institutions through their online portals. This approach eliminates the possibility of fund diversion and ensures that the loan serves its intended purpose.
4. Repayment Terms: Prior to receiving the loan, students would be required to sign an agreement stating that at least 50 per cent of the loan should be repaid before they can apply for another loan. This provision allows students ample time to gather the necessary funds before the start of the next academic year, regardless of their income level. By implementing this repayment requirement, the need for punitive measures such as potential jail time after two years of service can be avoided.
5. Certificate Withholding: If a student fails to repay at least 50 per cent of the loan within the specified timeframe, they would not be eligible for another loan and may have their certificate withheld until the outstanding payment is made. This approach ensures accountability and discourages loan accumulation without repayment.
Additionally, it is advisable for the government to work towards reducing tuition fees to alleviate the burden of repayment. By showing compassion and recognizing that ensuring a standardized and affordable education is an obligation for the benefit of future leaders, the government can create an environment that supports students in repaying their loans without undue financial strain.
In conclusion, involving approved Nigerian banks in the loan process and implementing clear repayment terms can help mitigate concerns about unequal access to the student loan scheme. By reducing tuition fees and fostering an environment that supports students, the government can ensure that education remains a priority and that future leaders have the means to succeed.
President Tinubu’s open support for the student loan scheme is a commendable step towards
transforming the Nigerian education sector. While criticisms and concerns exist, addressing certain aspects, such as the guarantor requirement and student eligibility criteria, can enhance the accessibility and success of the program. By ensuring that the right policies are implemented, the president can make the student loan scheme one of the most impactful initiatives aimed at empowering Nigerian students and fostering national development.
****Akinbolade can be reached at: (gbenga.pace@gmail.com) and +2347038863128