On Wednesday, the National Assembly approved the 2024 Students Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill following thorough reviews by both the Senate and the House of Representatives Committee on Tertiary Institutions and TETFund.
Less than a year after President Bola Tinubu signed the initial Students Loan Bill into law, it was sent back to the National Assembly for a complete overhaul amid criticisms over missed deadlines in implementation.
President Tinubu, who had promised student loans during his campaign, encountered challenges with the law’s provisions and urged lawmakers to revamp the entire legislation for a smoother execution.
The proposed amendments by President Tinubu aim to make significant changes to the existing law, addressing issues like student inclusivity, operational responsibilities, eligibility criteria, guarantor requirements, loan disbursement policies, and repayment procedures.
Ensuring Inclusion for All Students
The proposed amendment seeks to rectify the exclusion of certain groups of students due to the wording of the current law, which limited loans to tuition fees only, thereby preventing federal university students from benefiting. The new bill expands the loan coverage to include fees, charges, and upkeep for students in approved tertiary institutions in Nigeria.
Transfer of Operational Powers
The new bill proposes transferring the administration of the fund from the CBN Governor to the Managing Director of the Fund to align with core mandates and streamline operations effectively.
Elimination of Guarantors
President Tinubu’s bill aims to remove the requirement for guarantors, as well as relax income restrictions that previously disadvantaged students with family incomes above a certain threshold.
Equal Access for All Applicants
Under the proposed Act, the children of loan defaulters will no longer be barred from accessing loans, promoting equal opportunities for all applicants.
Adjusted Loan Repayment Terms
The new bill introduces revised loan repayment terms, postponing initiation of loan recovery efforts until two years after completing the National Youth Service program. Repayment begins once the beneficiary secures employment.
Loan Forgiveness in Special Circumstances
The revised bill allows for loan forgiveness in cases of death or extreme circumstances preventing repayment, with beneficiaries required to provide suitable documentation to delay enforcement actions by the Fund.