By Milcah Tanimu

The National Association of Nigerian Students (NANS) has called upon the House of Representatives to make amendments to the Student Loan Act, encompassing provisions for loans to be accessible to all Nigerian students seeking financial aid.

During a legislative summit centered on student loans and access to higher education, organized by the ad hoc committee of the house in Abuja, Usman Barambu, the President of NANS, articulated this plea.

Barambu emphasized that the existing criteria for obtaining loans outlined in the act were overly stringent. He proposed an extension of the repayment period from the current two years to a more realistic four or five years.

Furthermore, Barambu pointed out the necessity of reviewing the list of required guarantors, highlighting that many students would struggle to fulfill this prerequisite.

“Although student loans are designed to assist us, the current structure lacks representation from the student body. The board’s composition only acknowledges the NUC, neglecting polytechnics and colleges of education. To ensure fairness and equity, these institutions should be included,” explained Barambu. “The repayment schedule should be reevaluated, as most graduates find it financially challenging to establish themselves within just two years. Extending the repayment period to four or five years would be more reasonable.”

Barambu also drew attention to a critical aspect of the act: its failure to provide any provisions for loan forgiveness, particularly in cases of the borrower’s demise, especially when the borrower is a security officer. He urged for this aspect to be reconsidered as well.

Is-haq Oloyede, the registrar of JAMB, regarded the act as a pivotal moment in Nigeria’s higher education history, particularly in the 21st century. He encouraged lawmakers to explore the feasibility of expanding the loan’s coverage to encompass various other aspects beyond tuition fees. Oloyede emphasized that students face increased costs for accommodation, meals, and transportation.

Oloyede also called for the creation of a supportive environment for loan repayment, while highlighting the need for the act to account for economic fluctuations, inflation, pandemics, and other uncertainties. He suggested that the loan amount shouldn’t remain fixed but rather incorporate provisions that would adjust it above the inflation rate.

However, Oloyede advised the parliament to establish a comprehensive framework for ensuring accountability in the loan process and to implement measures that would safeguard its long-term sustainability.

Muhammad Nami, the chairman of the Federal Inland Revenue Service (FIRS), expressed FIRS’s commitment to collaborating with the parliament on the student loan initiative. Nami assured that once the mandate is granted, funding would be promptly allocated. Nonetheless, he expressed reservations about relying solely on the federal government’s revenue, which designates one percent for the loan program.

Nami proposed an alternative approach, suggesting that the parliament consider amending the funding structure to allow contributions from a federation account, involving all states in the financing process.