Students’ loans have been touted all over the world as a panacea to access to tertiary education by students from poor families.
The money which students receive from the federal government or a private company is often paid back after graduation.
The introduction of the loan scheme in Nigeria by President Bola Ahmed Tinubu has raised hope of many young people who want to further their education but are worried about its rising cost.
However, the requirements for the loan has dampened the spirit of would-be applicants.
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This is because of some of the conditions in the act that have to be fulfilled by an applicant before qualifying for the loan.
Section 23 of the act states that a student must provide two guarantors who are people that can be held responsible if they fail to pay back the loan. It says the guarantor must be a Grade Level 12 civil servant or a lawyer with 10 years’ experience.
Such a requirement could breed corruption with such persons putting themselves in paid-for-hire.
Similarly, the act states that beneficiaries should start paying back the loan two years after completing their national service and failure to pay is subject to N500, 000 fine or two years imprisonment.
With these conditions, it will be difficult for parents to convince their children to go for the loan. Thus, the student loans will only end in bringing drawbacks to the educational system in Nigeria.
Another stumbling block to accessing the loan is that it is now difficult to get employment in government sector because of the corruption involved in recruitment. Many youths also find it difficult to be self-employed because they lack the capital and there are few avenues to access loans for such ventures. These mean that they may not be able to meet the loan obligation in time.
Let’s look at this issue from a broader perspective. Not all students will be eligible to obtain it and very few will be able to pay back after graduation. The only way out of this predicament is for the government to come with a robust scheme to assist young talents to set up their own businesses. This will enable them to take care of themselves and pay the loan.
I also suggest that government should review some of the conditions attached to the loan to make it easier for prospective beneficiaries to qualify.
In conclusion, I will also advise the government, elites and concerned stakeholders to institute scholarship schemes for vulnerable young people to enable them to pursue education. This will reduce the high level of illiteracy, crime, and unemployment among the youth.
Abdullahi Zara, Department of Mass Communication, Ahmadu Bello University, Zaria
