The Academic Staff Union of Universities, ASUU, has said that poor and indigent students will not benefit from the students’ loan recently introduced by the Federal Government due to the conditions attached.
The Academic Staff Union of Universities , ASUU, has expressed concerns that poor and indigent students may not benefit from the recently introduced students’ loan by the Federal Government due to the attached conditions.
Dr. Mwolwus Jurbe, Chairman of the University of Jos Chapter of ASUU, stated that the conditions associated with the loan are not suitable for students from low-income backgrounds, who are the intended beneficiaries.
President Bola Tinubu signed the Access to Higher Education Act in June 2023, which includes the Students Loan Act, aimed at providing interest-free education loans for Nigerians pursuing tertiary education.
However, ASUU is concerned that these loans may not reach the most financially vulnerable students.
The law would ensure the provision of interest-free education loans for Nigerians seeking tertiary education.
Some of the conditions are that; students who wish to apply for the interest-free loan must first obtain admission into a public Nigerian university, polytechnic, College of Education or Technical and Vocational Education and Training School.
The applicant’s income or family income should not exceed N500,000 per annum, and he/she must provide a minimum of two civil servants as guarantors.
These guarantors should either be at least on Level 12 in the civil service or a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of Peace.
The recently introduced students’ loan program by the Federal Government has several conditions attached to it.
Students or their parents who have a history of loan defaults, have been found guilty of exam malpractices, felony, or drug offenses will not be considered eligible for the loan.
Additionally, repayment of the loan will commence two years after the completion of the graduate’s National Youth Service Corps , NYSC , program.
The loan repayment will be directly deducted from the beneficiary’s salary at a rate of 10 percent by the employer. Self-employed beneficiaries will need to remit 10 percent of their total monthly profit to a designated Students Loan account prescribed by the bank.
These conditions have raised concerns, as they may limit access to the loans for some students.
Jurbe however stated that ASUU, a union that promotes equity and justice for all, wants Nigerians to have equal opportunities at acquiring education, irrespective of social status.
“Part of the reasons for our last strike is the revitalisation of the university system, but we received backlash from Nigerians.
“We believe that the government can fund education; because Federal and State Governments spend huge amounts to send students abroad for studies.
“If this huge sum is harnessed into our education system, it will be the envy of many countries and foreign students will come here to study too.
“So, this loan will force parents to fund education, and it simply means that children of poor Nigerians can’t go to school,’’ he said.
He further noted that any country that wants to make meaningful progress must also fund its education sector.
The chairman, who also decried the spate of unemployment in the country, saying that most students who would access the loan might not be able to pay back within the stipulated time.
“Giving bursary awards to Nigerian students is better than the provision of loans. This is because students may not be able to pay back the loan due to inadequate employment opportunities in the country.
“The fact remains that many jobless graduates that obtain such loans while in the higher institution would definitely become indebted to the government and unable to repay in time.
“Such policies thrive in the western countries like the United States of America, simply because there are job opportunities awaiting students even before they graduate from their various schools.
“But that is not the case in Nigeria, and we will not support the commercialisation of education because it is a social good, and no one should be denied that on the basis of status’’, the ASUU scribe said.
Meanwhile some stakeholders in Taraba, on their part said though the scheme was a commendable idea, it however needed to be reviewed to make the conditions flexible for the benefit of Nigerians.
Some of the stakeholders who spoke in Jalingo, expressed doubts over the success of the scheme, saying its implementation might be difficult.
The Executive Director of Alheri Centre for Educational Development, Malam Magaji Bello, an NGO, said that the conditions attached to the loan, such as parents who must be earning less than N500, 000 per annum, was unrealistic.
Bello noted that parents who earn less than N500, 000 per annum in Nigeria at the moment, cannot even feed their families and take care of other basic needs with the current economic situation.
A public Affairs Commentator, Mr Solomon Angyu, also noted that the students’ loan scheme needed a review to make it accessible by Nigerian students.
Angyu explained that the conditions of surety by high ranking officials of government, enshrined in the document, would make it difficult for the common man’s children to access.
He noted that though the scheme was welcomed by Nigerians when it was first announced, when they learned of the stringent conditions, they were discouraged because they knew it would be difficult to access.
Also a lecturer, Mrs Rosemary Agabison stated that, the scheme was a very good idea, but must be revisited with a view to removing some conditions that were inimical to its success.
She said when the loan scheme was announced, Nigerians were so happy to have a system that would ensure opportunities at getting education, but some conditions had dashed the people’s hopes.
However, a secondary school teacher in Benue, Mr Fred Injua, lauded President Tinubu for initiating the scheme.
Injua who spoke with NAN in Makurdi on Saturday, said if properly implemented, it would take the burden of school fees off parents’ shoulders because of the current harsh economic realities.
“It is my earnest desire and hope that the Federal Government would sustain the scheme for the overall good of both the parents and students”, Injua said.
He further advised those saddled with the responsibility of implementation not to be selective in granting the loan, but to ensure that all eligible students accessed it with ease.
He also appealed to the Federal Government to put the right modalities in place to sustain the scheme, appealing that it should not be allowed to go the way of the School Feeding Programme.
A civil servant named Mrs. Grace Ochai observed that there was very little knowledge of the program.
Ochai continued, saying that in order to assist young people who lacked the resources to appropriately support their educational needs, people needed to be made aware of the loan’s accessibility and viability.
Additionally, Mr. Kenneth Ogah, a member of a civil society organization, revealed that the group was making progress in educating people in rural areas about the scheme and that it was doing its best to do so.
Ogah, however, asserted that since people—especially young people—could not be trusted with money, the government must properly screen beneficiaries.
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