The Academic Staff Union of Universities (ASUU) has expressed strong opposition to the federal government’s student loan program, managed by the Nigerian Education Loan Fund (NELFUND). ASUU President, Professor Emmanuel Osodeke, criticized the scheme, suggesting that instead of loans, the government should provide grants, particularly for children from low-income families.

Speaking on Channels TV, Osodeke called for increased funding for the education sector to address the challenges faced by students. He argued that universities are raising fees to encourage more borrowing through NELFUND, burdening the children of the poor.

“In my department, fewer than 10 students remain, with many dropping out due to the rising costs,” Osodeke revealed. “While programs like Medicine and Law still attract students, many are leaving higher education because of the financial strain.”

Osodeke also pointed out the past failures of the student loan system, noting that graduates often struggle to repay loans due to the country’s economic challenges. He warned that this financial burden could demoralize students, citing the example of a graduate with a loan of five million naira, a sum they would likely be unable to repay for decades.

The ASUU president further questioned the sustainability of the current student loan scheme, referring to its previous collapses, which left many unable to benefit. “This is the third attempt, and the first two failed. How can we be sure this one will work?” Osodeke concluded.