Student Loan Bill Signed By Tinubu Only Favours The Rich – ASUU

The Student Loan Bill was signed into law by President Bola Tinubu on Monday in Abuja. Dele Alake, a member of the Presidential Strategic Team, told State House Correspondents on Monday night that the bill’s signing was “fulfillment of one of his campaign promises to liberalise funding of education.” Indigent students will be able to receive interest-free loans, according to the bill. On May 25, 2023, the third reading of the bill proposed by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, 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. 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. Additionally, it was said that even though the bill is instantly effective, the committees overseeing the process will hammer out the application procedures.

“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 loan 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.

“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.

Adejoh, the Permanent Secretary of the Ministry of Education, implied that the Federal Government’s current scholarship board will change into a loan board that might provide educational credit facilities 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. Prof. Emmanuel Osodeke, national president of ASUU, said: Everyone knows that student loans will end up burdening the children of the poor with loans and debt after graduating.
In his words; This is discriminatory, If what I read online is accurate, only children whose parents make at least N500,000 annually are eligible. That implies that you will not gain if your father makes more money.

Similar to this, Mr. Anderson Ezeibe, national president of the Academic Staff Union of Polytechnics, stated, “I have not researched the bill and we do not want to respond on the surface. However, I have identified one place that will not be feasible.
The bill stated that Two years after completing NYSC, students must return the money. But what options are there for those who choose not to work after completing their NYSC?  Will everyone who completes NYSC find employment right away?
The National Association of Nigerian Students, however, referred to the student loan legislation as a “way forward” for the nation’s educational system. However, the payback terms were criticized by The Cordinator, NAN, Zone D, Adejuwon Emmanuel.

“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?”