How viable is the National Students Loan Act?

Nigerians woke up few days ago, to hear that the National Students Loan Act already passed by the bi-cameral legislature — the Senate and House of Representatives — has been assented to by President Ahmed Bola Tinubu, despite myriad of reservations expressed by groups and other concerned citizens.

By the way, what is the import or intent of the National Students Loan Act? According to relevant sections of the law, the executive bill titled, “A Bill for an Act to repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2024 to Establish the Nigerian Education Loan Fund as a body corporate to receive, manage and invest funds to provide loans to Nigerians for easy access to quality education.”

What this means is that a previous law on the subject matter was repealed to pave way for the operationalisation of a fresh one. But that is not the ‘beef,’ the issue is whether the old or new students loan Act, are really viable and to what extent?

Without being miserly with words, one may ask to what extent was the repealed students loan Act implemented? Your answer is as good as ours. Let us now peep into the current National Students Loan Act with a view to unbundling some vital areas.

First and foremost, the law states categorically that repayment of the loan starts from two years after graduation, plus the one year National Youth Service Corps (NYSC) mandatory service as grace for Nigerian graduates.

The question is, how many graduates have secured jobs in  two years after they graduated? Let us be realistic as good Nigerians that we are. The answer should be provided by all of us, country men and women. It is capital NO of course!

Again, the law stipulates two years as jail term or N500,000 fine or both for defaulters. What are we now saying, fellow Nigerians! The consequence is that more prisons should from onset be built, because there will be harvest of inmates, courtesy of the National Students Loan Act, as passed by the National Assembly and assented to by President Ahmed Bola Tinubu.

And one shouldn’t forget that the loan is meant for students from poor backgrounds. The practical reality here is that if the graduate does not secure a job within this stipulated period, he has already defaulted and the parents paying back the loan is out of place considering their background.

You can now understand why it is not out place to brand him (graduate) a potential prison candidate. We are all aware of the tsunami of unemployment currently ravaging every home in Nigeria, including the public office holders and their privies.

Why  pretend that we are oblivious of the stark reality on ground, as it concerns lack of jobs? Before now, some well meaning Nigerians and groups have poked holes in the National Students Loan at its embryonic stage.

To be more precise, the Academic Staff Union of Universities (ASUU) was blunt about the proposed students loan bill, now law. Their grouse was that the Federal Government can comfortably fund education up to the university level without stressing the already overstretched parents of the students, or better still grant full autonomy to Universities and watch them deliver on this all-important mandate, but all to no avail.

Other concerned citizens also joined in trying to persuade the President Ahmed Bola Tinubu led government to jettison the National Students loan idea, but the efforts did not yield any result. Now that the cat is out of the bag, we can now appreciate the implications of such Act. Whether it is draconian, obnoxious or otherwise, time will tell. Whatever be the case, we think that the law is amenable.

We are of the opinion that the loan could be converted to grant, in view of the current economic hardship confronting Nigerians. Just like ASUU and other educational pundits have been canvassing, the Federal Government should as well look towards free education at all levels. It won’t be out of place. It is possible and doable.

We equally subscribe to massive creation of employment in the country to absorb the teeming population of the unemployed, especially youths. Again, government could strive to provide an enabling environment for businesses to thrive, through sound economic policies. By this, peradventure any student-loan indebted graduate who could not secure a job more that two years after graduation, can opt for self-employment and still repay his loan.

What more, if a graduate could shortly after graduation start a  functional business, he can conveniently repay his loan. This of course is dependent on the economy of the nation. In as much as we are not totally in support or against the National Students Loan Scheme, what we are saying is that there should a window or soft landing for students who out of no alternative obtained the loan to complete their education. Any law that has no human face is not qualified to be law and not be applied on human beings.

Government should on its part and as a matter of priority provide jobs for its citizens. After all, the unemployed in some climes are paid unemployment allowances by their governments, until such persons secure jobs. Ours should not be different. It simply boils down to political will, which should not be scarce in Nigeria, considering the abundant material resources acruable to the country. This is a task that must be done and posterity will not forgive us if we fail.