The House of Representatives on Wednesday passed through third Reading the Student Loan (Access to Higher Education) amendment bill, 2024.
The proposed bill seeks to ensure smooth access to higher education and provide the required assistance in the area of educational advancement through loans needed by Nigerian youths.
According to the report of the Senate and House of Representatives joint Committees on Tertiary Institutions and TetFund, student loans which the House adopted,
The core objective of the bill was to provide a legislative framework to support the establishment of the Nigerian Education Loans Fund to oversee the general administration of the management and disbursement of the loans to beneficiaries.
The approved bill seeks to “provide loans to qualified applicants to pay tuition fees, charges and up keep during their course of study in approved Tertiary Education Institutions and Vocational and Skills Acquisition Institutions in Nigeria”.
The legislative framework also seeks to provide for “Build, operate and maintain a diversified pool of funds to provide loans to qualified applicants and ensure access to Higher Education, Vocational Training and Skills Acquisition.”
The bill also seeks to “ensure the recovery of all debts to the funds from loans granted to applicants except where the Board believes that a Loanee should be exempt from repaying his/her loan because of: death; consideration of hardship or equity; impossibility or undue difficulty or the expenses to be incurred in the recovery of the loan being far more than the amount sought to be recovered.
“The Joint Committee deliberated on the provisions of the Bill and took into account the views expressed by Distinguished Senators and Honourable Members during the debate on the general principles of the Bill at the Second Reading stage.
“In addition, the Joint Committee placed adverts in the media in support of the ‘constituency outreach’ principle in legislation while ensuring that the Bill is publicized and relevant stakeholders engaged to contribute to the content of the Bill.
“Accordingly, the Joint Committee conducted a public hearing on Monday, 18th March, 2024, in order to collate stakeholder’s views on the Bill as inputs to enrich the legislative proposal.”
While presenting the synopsis of the report, Minority Whip, Hon. Usman Kumo expressed optimism that the proposed “Bill contains tremendous benefits for educational advancement of the nation.”
Nigerian Tribune gathered that the Federal Government has taken action to implement the legislation, including providing over N200 billion to the Fund through appropriations and presidential directives.
However, efforts to operationalise the NELFUND and implement the Students Tertiary Education Loan Scheme have been hampered by problems with some provisions of the Act.
President Bola Ahmed Tinubu had in the cover letter titled: ‘Transmission of Student loans (Access to higher education) (Repeal and Re-enactment) bill, 2024’, dated 14th March, 2024 sent to Speaker Tajudeen Abbas, solicited for expedite consideration and passage of thr proposed amendments.
“Pursuant to Section 58(2) of the Constitution of The Federal Republic of Nigeria, 1999 (as amended). I forward, herewith, The Student Loan (Access to Higher Education) (Repeal and Re-Enactment) Bill, 2024 for the kind consideration of the House of Representatives.
According to him, “the Student Loan (Access to Higher Education) (Repeal and Re- Enactment) Bill, 2024 seeks to enhance the implementation of the Higher Education Student Loan Scheme by addressing challenges related to the management structure of the Nigerian Education Loan Fund (NELF), applicant eligibility requirements, loan purpose, funding sources and disbursement and repayment procedures.”
The proposed amendment seeks to “Provide loans to qualified Nigerians for tuition, fees, charges and upkeep during their studies in approved tertiary education institutions and vocational and skills acquisition institutions in
Nigeria.”
The bill also defines the resource structure of the Fund by, amongst other things, by establishing the General Reserve Fund into which shall be paid 1% of all taxes, levies and duties collected by the Federal Inland Revenue Service and accruing to the benefit of the Federal Government of Nigeria; and from which the Fund shall pay amounts payable as loans to qualified applicants for tuition, fees, charges, and upkeep, as well as the Fund’s operational expenses and such expenditures necessary to attaining the Fund’s objectives and functions.
Similarly, it proposed certain amendments on eligibility criteria for Applicants, by removing the family income threshold so Nigerian students can apply for these loans and accept responsibility for repayment according to the Fund’s guidelines.
It also removes the guarantor requirement so that students can apply for and receive loans subject to application and identity verification guidelines as provided by the Fund.
According to the proposed bill, intending Student applicants can no longer be disqualified based on their Parent’s loan history.
It further establishes a justice and fairness provision mandating the Board to ensure a minimum national spread of loans approved and disbursed in each financial year, while Applicants to the Fund may apply for loans to cover tuition and other fees payable to the school and maintenance allowance payable to the Student.
On the repayment of loans by beneficiaries, the proposed bill stipulates that beneficiaries of the Fund shall begin as soon as the beneficiary becomes employed in any capacity.
It also provides that the Fund shall not initiate loan recovery efforts until two years after the completion of the National Youth Service programme.
It however provides that a beneficiary may request an extension of enforcement action by the Fund by providing a sworn indicating that he is not employed in any capacity and is not receiving any income.
Accordingly, only a person who provides a false statement to the Fund under this section is guilty of a felony and is liable to imprisonment for three years.
The bill also makes provision for loan forgiveness in the event of death or acts of God causing inability to repay.
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