THE STUDENT LOAN ACT. A STEP IN THE RIGHT OR WRONG DIRECTION
By Edun Ayokunle
400-level law student
Adeleke University
The president of Nigeria in person of President Bola Ahmed Tinubu on Monday the 12th of June(Democracy day) passed into law the Students Loan( Access to Higher education) Bill 2019. The entire purpose of the bill which is now an Act of parliament, is for students who are unable to afford tertiary education to have a means towards attaining the higher education they need. It is no news that education has been regarded as the first step to attaining a better and more successful life, hence, taking that into consideration, the Act is a step to improving the life quality of citizens. It can be said that through the enactment of this act a lot of core issues the country has been facing can take a huge leap towards being solved. Issues like poverty, illiteracy, unemployment etc.
However, there is always the possibility that the creation of this act can be a step in the wrong direction,as it can go on to continue and aid in the long line of corrupt practices already established in Nigeria.The newly enacted Student Loan( Access to Higher Education)Act 2023, can either be an instrument for serving and liberating the masses or it can be another means of possibly coveting the wealth of this nation by corrupt politicians and civil servants.
The Student Loan( Access to Higher Education) Act 2023, was enacted to provide easy access to education for Nigerians through student loans with a view of providing education for all Nigerians. The Student Loan Act has been seen as the solution to the problem of students who are unable to get access to higher education because of their inability to make payments. Thanks to the Act students who are willing to obtain tertiary education can now obtain a loan to the effect, and the Student Loan Act has outlined the various modes of operation to which the cause of granting loans to students can be actuated.
To the effect of granting loans to students, The Act establishes under section5(1) the Nigerian Education Bank, which is the institution charged with the responsibility of granting student loans and making sure that all provisions enshrined in the Students Loan Act are implemented. Section 6 of the act gives 17 functions of the the Nigerian Education Bank. Some of them include:
A. Implementation of the provisions of the act
B. Supervise,coordinate,administer and monitor the management of student loans in Nigeria.
C. Receive applications for student loans through higher institutions on behalf of the applicants and making sure that all the conditions for the giving of the loan are met according to the provisions of the act
D. Approve and disburse loans to qualified persons
E. Liaise with employers of the grantees to ensure that the proper sum is deducted from their salary in regards to fulfilling payment for the student loan.
F. Quarterly issue of a report to the president on the performance of student loans etc.
The students loan act gives the procedures through which citizens may apply for student loans. They include
1. The applicant must apply to the chairman of the commission through the prospective higher institution.
2. The applicant must have secured admission into any Nigerian university, polytechnic, college of education or vocational school established by the state government or federal government.
3. The applicants income or family income must be less than 500,000 naira.
4. The applicant must provide at least two guarantors. The first must be a civil servant who had spent not less than 12 years in his/her capacity, the second is a lawyer who is not less 10 years post call.
Section 20(1) of the act also provides for the processes through which the various public institutions must follow in respect of student loans
The act has outlined the various ways through which the students loan will be administered as well as outlining the working processes of the Nigerian Development Bank. This is not the first time that Nigeria would establish a public institution for the purpose of helping the public, however as seen and evidenced in our society today, a lot of public institutions now serve as means of the elite achieving their greedy desires. What then is our guarantee that this scheme and institution that has now been established wont also amount to the same effect.
Nigeria has faced a lot of challenges in the past relating to access to higher education, and the newly enacted act appears to be a solution to it. However, it is important that we don’t overlook the possibility of this agenda becoming another means of corruption. To this effect, it is suggested that the president be strict with the quarterly auditing which is enshrined under the functions of the Nigerian education bank under section 6 of the Act.The government shouldn’t be indifferent to the activities of the bank, instead there should be periodical checks on the activities of the bank, to ensure that the purpose of the establishment of the bank be achieved, It is also suggested that the government should not be indifferent towards the cries of the public. The cries of the public is an avenue to know about the affairs that go on in any public institution.
In conclusion, plead with the government to keep up with the efforts and let this mark the dawn of a new age in Nigeria. Hence, we beckon on the government to use this newly established scheme to show the public of better things to come, by checking on the excesses of the institution and also ensuring that the salaries and wages of the workers are paid timely.
