ASUU voices concerns over student loans and conditions

The Academic Staff Union of Universities (ASUU) has expressed concerns that the recently introduced students’ loan by the Federal Government may not benefit poor and indigent students due to the attached conditions.

The chairman of the University of Jos chapter of ASUU, Dr. Mwolwus Jurbe, explained that the loan’s conditions are not suitable for the intended beneficiaries, who are children from financially challenged backgrounds.

In June, President Bola Tinubu signed the Access to Higher Education Act, 2023, also known as the Students Loan Act. This law is designed to provide interest-free education loans for Nigerians seeking tertiary education. However, it comes with certain criteria that must be met to access the loan.

Some of the conditions include:

1. Applicants must first gain admission to a public Nigerian university, polytechnic, College of Education, or Technical and Vocational Education and Training School.
2. The applicant’s income or family income should not exceed N500,000 per annum.
3. A minimum of two civil servants on at least Level 12 in the civil service, or a lawyer with a minimum of 10 years of post-call experience, a judicial officer, or a Justice of Peace must serve as guarantors.
4. Students or their parents with a history of loan defaults, exam malpractices, felony, or drug offenses are ineligible for the loan.
5. Loan repayment begins two years after the completion of the graduate’s National Youth Service Corps (NYSC) scheme, with a 10% deduction from the beneficiary’s salary by the employer. Self-employed beneficiaries must remit 10% of their monthly profit to a designated Students Loan account.

Dr. Jurbe and ASUU argue that these conditions will not favor students from impoverished backgrounds, and the loan may lead to increased financial pressures on parents to fund their children’s education. ASUU emphasizes the importance of government funding for education and believes that diverting the funds used to send students abroad for studies could transform the education system into a global hub.

Additionally, ASUU expresses concern that many graduates may struggle to repay the loans within the stipulated time frame, given the challenging employment landscape in Nigeria.

While some stakeholders have commended the initiative, they suggest that the conditions should be reviewed to make the loan more flexible and accessible for Nigerians, particularly those from financially constrained households.

The student loan scheme is seen as a significant step towards reducing the financial burden of education on parents and students, but ASUU and other stakeholders are calling for a more equitable approach to ensure that it truly benefits those in need.

Public awareness and proper screening of beneficiaries are also deemed essential to the success of the loan scheme. The government is encouraged to provide a clearer understanding of the scheme’s workability and accessibility to help youths who lack the means to support their educational needs.