•Tasks govt on measures for repayment of loan

Following recent assent to the Student Loan Act, ActionAid Nigeria has stressed that the law should not be a ploy to increase tuition.

The organisation expressed worry that if the problem of under-employment or unemployment is not tackled, and students are provided with financial literacy, repayment of the loan may be a daunting task.

The body, however, called on government to implement income-driven repayment plans that adjust monthly loan repayment based on borrowers’ level of income, particularly for those who will start up as self-employed and at lower cadre jobs.

It noted that repayment methods should also include incentivising borrowers to work in certain public service sectors such as agriculture, public health and education, among others.

A statement signed by ActionAid Country Director, Ene Obi, stressed that although the Students’ Loans Act is a great initiative, to ensure its fair and efficient administration, there is need to adopt a decentralised approach that would not only place powers of coordination, supervision and monitoring the hands of the Nigerian Education Bank, but also ensures students and academic unions, as well as Civil Society Organisations (CSOs) are co-opted into the process.’ ’

Obi recalled that there was a time in Nigeria when tertiary education was free or highly subsidised, saying in 1970s and 80s, during the oil boom, the Nigerian government implemented policies that provided free or heavily subsidised education at the tertiary level.

She said: “During this period, the government covered tuition and provided financial support for students in public universities and colleges, giving scholarships at both national and international levels in its investment in human capital development. This allowed many Nigerian students to pursue higher education without having to pay tuition directly, and a lot of our leaders today benefited from this.”

Obi also recalled that there were students’ loans in the past that gave more opportunities to vulnerable students, which were later stopped. She, therefore, noted that the action of the President is commendable and a welcome development.

While noting that the Students’ Loan Act would be a succor to the plight of the poor if well implemented, she stressed that sustainability of the process and the Act itself should be deeply examined.