ASUU, ASUP reacts to New student Loan Policy, express doubts

Monday in Abuja, the Student Loan Bill was signed into law by President Bola Tinubu.

According to a member of the Presidential Strategic Team named Dele Alake, the bill’s signing was “fulfillment of one of his campaign promises to liberalize funding for education.”

Tinubu has signed two pieces of legislation since taking office two weeks ago, the second being the Students Loan Act.

Students who are in need of loans will be able to access them thanks to this bill.

On May 25, 2023, the third reading of the bill sponsored by Femi Gbajabiamila, Speaker of the 9th House of Representatives, was approved.

Alake stated that the new rule requires potential beneficiaries to provide documentation of their origins. Alake was joined by other members of the media team, including Tunde Rahman, Abdulaziz Abdulaziz, and Permanent Secretary, Ministry of Education, David Adejoh.

“We’re very happy to announce to you that today the President, His Excellency, Bola Tinubu, signed into law the Student Loans Bill.

“This is a promise made during the presidential campaign by the then candidate, His Excellency Bola Tinubu, that he will bring back the student loans issue onto the front burner.

“And today, that promise he made has been kept. He has just signed that bill into law, which henceforth would allow or enable our indigent students to access Federal Government’s loans to fund the educational pursuit or career,” Alake said.

The presidential adviser claimed that the action would make it easier for people to attend education and was consistent with global standard practice in developed regions.

“This is how it’s done in other developed climes. So this is a boost to our youths and students nationwide.

“Of course, there are prescribed qualification parameters. And that is the proof of indigenship of whoever is to be a beneficiary.

“Of course, there are committees to be set up. The members of committees will be drawn from various bodies to superintend over the efficient and proficient disbursement of this facility,” he added.

Additionally, it was said that even though the bill is instantly effective, the committees overseeing the process will hammer out the application procedures.

Adejoh, the permanent secretary of the ministry of education, implied that the federal government’s current scholarship board will transform into a loan board that might provide educational credit options to qualifying candidates.

“Today, what the President has done goes beyond the symbolism. It is a demonstration of intent in terms of how he wants to handle education as he progresses in his presidency. Once the bill has been signed, that is the most important thing. A bill tells you what should be done. The how is what we are going  to put together.

“What we have now is that nobody shall say money did not allow him to go to school,” he added.

The Academic Staff Union of Universities responded by describing the loan law as favoring the children of the wealthy above those of the poor.

National President, ASUU, Prof. Emmanuel Osodeke, in an interview with The PUNCH, said, “The union will react soon but everyone knows our position on student loans because you will end up encumbering the children of the poor with loans and debt after graduating. This is discriminatory. If what I read online is correct, it said it is only for children whose parents earn at least N500,000 per annum. That means if your father earns more, you won’t benefit.”

Similarly, the National President, Academic Staff Union of Polytechnics, Mr Anderson Ezeibe, said, “I have not studied the bill and we don’t want to react on the surface. But I have seen one area that will not be practicable.

“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?”

The student loan bill, according to the National Association of Nigerian Students, is a “way forward” for the nation’s educational system.

The Cordinator, NAN, Zone D, Adejuwon Emmanuel, however, criticized the repayment terms in a statement made available to The PUNCH on Monday.

“Without saying much, student loan bill is a way forward to the educational system in Nigeria, because it will assist student whose parent cannot afford to pay tuition fee to be able to pay with the loan.

“But as good as this is, there are some questions that need to be answered by the government. The ultimatum for repayment 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? How will it work when most of our graduates do not get jobs. Is there any plan or opportunity for those that have no work two years after NYSC?”

A former Deputy Vice-Chancellor at the University of Uyo, Prof Ini Uko, in an interview with our correspondent, lauded the initiative.

Uko said, “Well, this means that tuition fees will go up. The subsidy on tertiary education will be removed. Vice-chancellors will now be able to introduce tuition fees. This is a good initiative. I am a beneficiary of a student loan and, of course, the people who benefit from it will have to pay back.

“The truth is that we have to stop pretending that the government alone can continue to fund tertiary education. It is not possible.”