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Students Loan: Solution or Burden?

By Akaje Maimunat 

First introduced in 2016 and sponsored by the Speaker of the 9th House of Representatives, Femi Gbajamiala, the students loan bill was signed into law by president Ahmed Bola Tinubu.

Though it raised loud cries and bile of the masses, the law provided no exclusion to Nigerians as it enabled all indigenous irrespective of their tribes, religions, position, disability among others.

But did it address the detriment of the hike in education?

To me, the impediments it could navigate on students exceed its merits

For instance, challenges may arise for graduates facing employment uncertainties or difficulties in establishing profitable self employment ventures.

These circumstances could impede loan repayment leading to defaults and burden young graduates with significant debt, hindering their ability to start business,buy homes or pursue their dreams. Indeed,it’s a recipe for disaster.

The Former President of the United State, Barack Obama happened to be a victim of the monumental disaster. Obama couldn’t complete his repayment until he became America’s President.

Moreover, high levels of student loan debt can limit financial freedom, delay milestones, save for retirement and impact overall economic stability.

The student loan strives to ensure responsible loan allocation,but raises concerns about the stringent eligibility requirements. The mandate to secure two guarantors from specific professional backgrounds,such as civil servants or lawyers of 10 years experience,may inadvertently limit access for deserving students who do not meet these criteria. These can be hardened for the lower class people in Nigeria to provide.

The Student Loan Bill imposes strict penalties for loan defaulters and those aiding in default. While the intent is to ensure loan repayment to compliance,the potential two years imprisonment and N500,000 hefty fines associated with defaulting may disproportionately impact individuals, hindering their ability to recover and contribute positively to society.

The rejection of the Student Loan Bill by the Academic Staff Union of University (ASUU) described the government recommendations as an attempt to indirectly and systematically wash its hand off funding the public universities thereby making university education beyond the reach of poor Nigerians.

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