FG approves interest free loans for Nigerian students

…Way forward to end tuition fee crisis — NANS Zone D

…Stakeholders advocate complete refund two years after NYSC

By Ibiyemi Mathew and Sodiq Adelakun

The Federal Government of Nigeria has approved the disbursement of interest free loans to Nigerian students.

This follows the signing into law of the The Student Loan Bill yesterday by President Bola Ahmed Tinubu.

Recall that Tinubu, during his campaign, had promised to give student loans as part of efforts to develop the education sector and also build the youth capacity.

Tinubu made the promise at the British Royal Institute in London.

“The education system is to change. We would overhaul it and tinker with some areas with the philosophy that no one would be left behind. There will be student loans for all. We are going to reform the Almajiri system, We are equally going to build more schools, recruit more teachers and train them,” he said.

In November 2022, the legislation, which seeks to provide financial assistance to Nigerian students in tertiary institutions, was passed by the national assembly.

The bill was sponsored by Femi Gbajabiamila, immediate-past Speaker of the House of Representatives and Chief of Staff to the President.

In an interview with Nigerian NewsDirect, Coordinator of NANS Zone D (Southwest), Comrade Adejuwon Emmanuel Olatunji said, “Without saying much, Student Loan Bill is a way forward for the educational system in Nigeria, because it will assist students whose parents cannot afford to pay tuition fee to be able to pay with the loan.

“But however, as good as this is, there are some questions that are need to be answered by the government. How about the duration of paying back two years after NYSC?

“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 are not being engaged once they finish school? Some after two years might not have work. Is there any plan or opportunity for those that have no work two years after NYSC?

“Also, the defaulters, what will be the punishment as we are against going to jail for defaulters.”

Also, according to an active member of NANS, Comr. Yusuf Wasiu Olamilekan, “That was part of the campaign promises he made, so it is commendable.”

According to one Mrs Temitope, “It is magnificent.

“If money is what’s standing in the way of the life and career you want, then a student loan could help you afford your education without stressing about how you’re going to finance it.

“It gives you what you need when you need it. A student loan caters to your specific and unique needs, and the process is quick and easy. It pays your tuition directly to the institution, your accommodation is paid directly to your landlord, and the rest of the funds directly into your or your surety signer’s bank account.

“It gives you the flexibility to focus. If you are a full-time student, you only need to start paying back the student loan in full once your studies are finished. Until then, the person who signed surety for you will only pay the interest and fees on the loan, giving you the financial freedom to focus on your studies and create the future you want without worrying too much about money. If you are a self-assured student, we offer you affordable and flexible monthly repayments.

“It pays for more than just tuition. In addition to tuition fees, your student loan could also be used to pay for your accommodation, as well as the textbooks and equipment needed for your studies.”

Also, Proprietor of Veracity College, Mr Adesoji, Ifo, Ogun State said, “Commendable. The President keeps pulling the right strings. Even his fierce critics can’t help but applaud some of his decisions. I think what matters most for many of us is a Nigeria that works. We hope the good work continues.”

Meanwhile, Mr Salami, a teacher said, “How will one pay back this loan when there are no jobs? There are fundamental issues that should be sorted out first. Go to any Nigerian bank for student loan, you will spend 50 years trying to get it.”