The Academic Staff Union of Universities (ASUU) has expressed strong disapproval of a recently enacted law by the federal government.
In justifying its condemnation, the union pointed to cases where beneficiaries of student loan programmes in other countries resorted to suicide due to their inability to repay debts.
Speaking on Channels Television’s Sunday Politics, ASUU National President, Prof Emmanuel Osodeke, stated, “It would be more appropriate to classify this assistance as a grant rather than a loan, especially when targeting financially disadvantaged students. Since it is funded from the Federation Account, calling it a grant would be more fitting. Currently, when these individuals graduate, they bear a heavy burden, and within two years, failure to repay could result in imprisonment.”
Osodeke appealed to President Bola Tinubu to revise the recently enacted Students Loans Act, transforming it into grants specifically designed for impoverished students.
The Student Loan law aims to provide interest-free loans to financially challenged Nigerian students. Repayment of the loan begins two years after the beneficiary completes the National Youth Service Corps, NYSC.
Nonetheless, the ASUU president argued that the policy is not sustainable.
He stated, “The concept of student loans was introduced in 1972 through the establishment of a bank. However, borrowers rarely repaid their loans. In 1994, under Decree 50, the military established a Students’ Loan Board. It was subsequently domesticated by the National Assembly in 2004, but vanished within a year, with the funds disappearing. We are curious to see how this new initiative will differ.”
Osodeke also criticized the impractical conditions for accessing the loan, asserting that over 90% of students would fail to meet the requirements.
He further highlighted ASUU’s research findings, which revealed instances of individuals from various countries who had resorted to suicide after benefiting from similar loan schemes.
He added, “Recently, President Joe Biden has been working towards paying off the bank loans of some individuals who borrowed in the US.”
The ASUU President urged the President to reconsider the new law, emphasizing the need for an investigation into the operations of the Tertiary Education Trust Fund (TETFund).
