The air around the Student Loan Act as signed by President Bola Ahmed Tinubu is still hazy as many Nigerian students and parents seem confused on what the piece of legislation stands to offer them.
Some Nigerians seem to entertain fears that on the surface the Student Loan Act looks juicy by providing indigent students with interest-free tuition loans, but are worried that the scheme is a mirage going by the body language of the government and its agency.
According to Nigerian Education Loan Fund (NELFUND), the agency in charge of the disbursement of the loan, the fundamental aim of the fund is to ensure educational equity, providing an opportunity for financially disadvantaged students to start and complete their studies, just like their counterparts from more affluent backgrounds.
The goal is to prevent underprivileged students from dropping out due to financial constraints during their research.
However, in the face of this supposedly lofty opportunity, some Nigerian university undergraduates have spoken up about their unwillingness to apply for the students’ loan.
Adebayo Olatunde, a student of the University of Lagos, said though the loan scheme is important for students who are unable to pay their fees, students are shying away from it because of requirements embedded in getting it.
“Some students are probably shying away because of the requirements to access the loan, or they think it isn’t worth the problem; and they are better off without it,” he said.
A male student of the University of Lagos (UNILAG), who spoke to our correspondent on condition of anonymity, said he and his friends were skeptical about the students’ loan.
“In fact, initially, some of my friends and I wanted to apply, but at a point we were discouraged because of some of the conditions attached to the loan. The most discouraging aspect is the N20,000 a month for feeding that will be paid into the student’s account. Twenty thousand naira (N20,000) is too small an amount that can hardly do anything. And to think that if one signs on it, one may not know how much one would accumulate over time to be a huge debt on one’s neck at the end of the day. So, why accumulating huge debt for tomorrow?
“Again, the school fees are expected to be paid back two years after the national youth service. The downside there is that in our country, there is no automatic employment after youth service, we have graduates of many years still roaming the streets.
“So, except those who believe that the loan is a dash (free money) in the real sense of it, because they are not going to pay back, but for some of us that have conscience, I don’t want to go into something that will not give me rest of mind after leaving school. Do I need the help, the answer is yes, but I am cautious,” the undergraduate said.
Rebecca Alabi, a student of the University of Benin, in Edo State, described the loan offer as a debt trap which she is not willing to venture into.
“The student loan for me is a no, no! Why would I jump into debt that will leave me in penury for years to come? I don’t think I want to be in the list of the government’s debtors, there’s no need for that; I can cope without their ‘Greek-gift’,” she said.
Mary Abraham, a student of the University of Lagos, said she does not need the student loan because her parents are capable of footing her bills.
“I decided not to take the loan because I don’t need it. My parents have the capacity to pay for my school fees and my parents also saw that it wasn’t needed for us to take it,” she said.
Chinonso Anthony, a student of the Federal University of Technology, Owerri believes the loan comes with a hidden agenda, and would not want to be associated with the Federal Government’s proposed offer.
“The reason I didn’t want to take the loan is because I think it’s something that comes with some hidden conditions which the government would begin to unfold as time goes by,” he said.
Iniamah Enoh, a student of the University of Uyo, Akwa Ibom State, expressed concerns that the Act has the potential to create serious challenges for beneficiaries.
“I’m not comfortable with the Act, especially, when initially the provision was highly contradictory, and had the potential to create serious challenges for intended beneficiaries of the loan.
“Though, they claimed to have rectified that, we’re all in Nigeria, where one thing is said and another is done; I don’t trust this government,” he said.
The NELFUND explained that the repayment of the loan will commence two years after the completion of the National Youth Service Corps (NYSC) programme, and the repayment amount will be deducted directly from the beneficiary’s salary at a rate of 10percent by the employer, while self-employed beneficiaries will remit 10 percent of their total monthly profit to the designated students loan account prescribed by the bank.
However, many Nigerians are worried that the students’ loan scheme is designed to enslave many and subject them into poverty even after graduation.
Ademola Adeleke, Osun State governor, recently called on the Federal Government and other stakeholders to ensure that the students’ loan scheme does not become a death trap for the beneficiaries.
“We must as a nation avoid a similar debt trap. As we have the grace to understudy other nations operating similar funds, we must avoid the pitfalls. Our new system must integrate mechanisms to prevent similar experiences like what is happening in the US.
“I task the management of NELFUND to innovate within its mandate on how to make its operations sustainable. Debt trap must never be experienced in Nigeria’s students’ loan operations,” he said.
In the same vein, the Academic Staff Union of Universities (ASUU), Ebonyi State University chapter, has chided the Federal Government over the loan scheme, saying its realisation and viability were not sustainable.
