“Dear Course Mates I hope this message finds each and each and every one of you in good health and spirits.
“Today, I write to you with a heavy heart as I must bid you farewell due to unforeseen financial constraints that have become insurmountable.
“Our time together in this university has been an incredible journey.
“We have shared laughter, tears, successes and failures. We have formed friendships, learnt from each other and grown both academically and personally.
“I am grateful for the memories we have created and the bonds we have forged. Unfortunately, life doesn’t always go as planned and I find myself facing a difficult challenge”
These were the words of Abdullahi Abubakar a 200 Level Mass Communication student of Bayero University Kano.
He posted this message when he realised he could not meet up with the payment of his school fees which had abruptly risen from N35,500 to N100,600.
This heart-wrenching revelation prompted an urgent call for financial assistance from his fellow students.
Abubakar reached out to his coursemates, friends, and the broader community in the hope that their collective support could help him overcome these financial hurdles and continue pursuing his academic dreams.
As the news circulated through social media platforms, the plea emphasised that no amount was too small to make a difference.
Abubakar’s fate hung in the balance, and the rallying cry was for individuals to share his story, amplifying the call for assistance.
In the spirit of solidarity, students, friends, and well-wishers assisted Abubakar and he didn’t drop out of school.
It is a few months to the end of the session and Abubakar is apprehensive of how we will get his fees for the next session.
Speaking to TheJurist Newspaper, he said “I just have to look for other means to get my fees ahead of the next session because as you know, I almost dropped out.”
When asked if he tried utilising the student loan or if it would be an option he could consider to fund his education, he said “That loan is very unrealistic.
“If you look at the criteria before getting a loan, it is so rigorous and not everyone can meet up with the conditions.
“I and some of my colleagues who had issues with school fees couldn’t access the loan and that makes me believe that the loan is just for political reasons.
“Even some of the repayment obligations will just scare an individual from applying for the loan.
“What I have decided to do is to hustle while on holiday so I can get funds for my fees next session.
“My advice to other students who are facing difficulties like me is not to rely on the student loan, just hustle for your fees, if not, you might get disappointed,” he said.
Nigeria’s Student Loan Act 2023
In a landmark move towards fostering accessible higher education for indigent Nigerians, the Student Loan Act of 2023 emerged as a beacon of hope.
The Act, signed into law by President Bola Ahmed Tinubu on June 12, 2023, is designed to provide interest-free loans through the Nigerian Education Loan Fund, aiming to ensure education for all citizens.
Background
The genesis of this legislation dates back to 2016 when the then-Speaker of the House of Representatives, Hon. Femi Gbajabiamila, introduced the Student Loan Bill.
President Tinubu’s endorsement in 2023 has set the stage for an initiative that seeks to facilitate easy access to higher education in Nigeria.
According to Section 2 of the act, the scheme provides for equal rights, ensuring that students pursuing higher education in any public institution of higher learning in Nigeria can access interest-free loans from the Nigerian Education Loan Fund.
The Act explicitly prohibits discrimination based on gender, religion, tribe, position, or disability, emphasizing the inclusive nature of the initiative.
Financial backbone of the Nigerian Education Loan Fund
The source of funding for the fund is supported by diverse revenue streams outlined in the Act, and they include:
• Education bonds
• Education endowment fund schemes
• 1% of all taxes, levies, and duties accruing to the Government of the Federation from the Federal Inland Revenue Service (FIRS), Nigerian Immigration Service, and Nigerian Custom Services.
• 1% of all profits accruing to the Government of the Federation arising from oil and other minerals.
• All sums accruing to the Fund by way of donations, gifts, grants, endowments or otherwise
• Other revenue accruing to the Fund from any other source.
Streamlined Application Process
Eligible applicants can submit their loan applications through their banks, accompanied by essential documents, to the Committee overseeing the loan process.
These documents include a copy of the student’s admission letter, a letter from guarantors, passport photographs, and particulars of the guarantor’s business registration, among others.
Application Requirements and Process
Students applying for loans under this Act must apply as provided under section 17 of the act on satisfaction of the following conditions;
• Applicant must have secured admission into any Nigerian universities, polytechnics, colleges of education or any vocational school established by the Federal Government or the Government of any state of the federation.
• Applicant income or family income must be less than N500,000 per anum;
• Applicant must provide at least two guarantors and each of the guarantors shall be a;
(i) Civil servant of at least level 12 in the service.
(ii) Lawyer with at least 10 years post-call experience.
(iii) Judicial officer.
(iv) Justice of peace.
Disqualification from the scheme
According to provisions of section 15 of the act, a student is disqualified from accessing the loan if;
• Such a person is proven to have defaulted in respect of any previous loan granted by any organisation.
• The individual has been found guilty of exam malpractice by any school authority.
• Has been convicted of a felony or any offence involving dishonesty or fraud.
• Has been convicted of drug offences.
• If the applicant’s parents have defaulted in respect of student loan or any loan granted to the person.
Repayment Obligations
Beneficiaries of the Student Loan commence repayment two years after completing the National Youth Service Corps (NYSC) program.
Repayment involves deducting 10% of beneficiaries’ salaries at the source by their employers, with self-employed beneficiaries required to remit 10% of their total profit monthly to the fund.
Failure to provide necessary information within 60 days of assuming self-employed status is subject to penalties.
In essence, the Student Loan Act denotes a paradigm shift in Nigerian education, dismantling financial barriers and creating a pathway for equitable access to higher learning.
It stands as a testament to the government’s effort to empower its citizens through legislation.
