The recent approval of the Students Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024 by the National Assembly marks a significant milestone. This legislative move followed thorough considerations by the Senate and the House of Representatives based on the report from the Committee on Tertiary Institutions and TETFund.
Less than a year after President Bola Tinubu initially signed the Students Loan Bill into law, it found itself under scrutiny and was unanimously sent back to the National Assembly for a complete overhaul.
President Tinubu, who prioritized student loans during his campaign, encountered challenges in implementing the law within stipulated timelines, which drew criticism from various quarters.
Nevertheless, in a recent development, President Tinubu has submitted a bill to the National Assembly seeking the repeal and re-enactment of the existing legislation. This move aims to address inherent challenges within the law that hindered its effective implementation.
President Tinubu emphasized the need for an overhaul of the legislation to streamline the management structure of the Nigerian Education Loan Fund (NELF), applicant eligibility criteria, fund disbursement procedures, and repayment mechanisms.
Enhancing Inclusivity
One crucial aspect of the proposed amendment is the broadening of the student beneficiary base by rectifying language in the law that inadvertently excluded certain categories of students.
Currently, the law restricts loan usage solely to tuition fees, which poses a barrier for students in federal universities that do not charge tuition fees. The proposed revision seeks to enable qualified Nigerians to access loans for various educational expenses, including tuition, fees, charges, and upkeep.
Shift in Operational Oversight
The current law designates the CBN Governor to administer the fund, a responsibility that, per the new bill, will transition to the Managing Director of the Fund. This adjustment aims to refocus the CBN Governor on core mandates, delegating fund implementation to a more suitable role.
Reconsidering Loan Qualification Conditions
President Tinubu’s bill also addresses the stringent conditions that applicants must meet to qualify for loans, such as the need for guarantors. Additionally, income thresholds that previously excluded many applicants are being reevaluated for a more inclusive approach.
Equality in Loan Access
The revised bill eliminates the provision that barred the children of defaulters from accessing loans, ensuring fairness and equal opportunities for all student applicants.
Revised Loan Repayment Terms
Changes in the repayment timeline and conditions are also proposed, with beneficiaries now expected to commence repayment upon employment, rather than being subjected to immediate enforcement actions post-NYSC completion.
Furthermore, the bill allows for loan forgiveness in cases of death or circumstances that prevent repayment, emphasizing accountability and compliance through legal repercussions for false information provision.