On Thursday, the Senate successfully passed the second reading of a new bill aimed at replacing the existing Student Loan and Access to Higher Education Act of 2023 with the proposed Student Loans Access to Higher Education Bill 2024.
President Bola Tinubu had originally signed the Student Loan Bill into law in June 2023 to enable Nigerian students to access loans without interest. This initiative was designed to make higher education more affordable for students across the country. However, before the scheme could be fully implemented, the presidency decided to revise the bill, leading to the Senate’s expedited consideration during a recent plenary session.
Purpose of the New Bill
The new bill, as presented by Senator Opeyemi Bamidele, the Leader of the Senate, seeks to address various issues related to the management of the Nigerian Education Loan Fund (NELF), eligibility criteria for applicants, the purposes for which loans can be used, funding sources, disbursement procedures, and repayment terms.
Senator Bamidele explained that the primary objectives of the bill are:
- Provide Loans to Qualified Nigerians
The bill aims to offer financial assistance to qualified Nigerians to pay for tuition, fees, charges, and living expenses while studying at approved tertiary education institutions and vocational or skills acquisition centers within Nigeria. This will help make higher education more accessible to a wider range of students, particularly those from low-income backgrounds. - Create a Diversified Pool of Funds
Another key goal is to establish and maintain a diversified pool of funds that can provide loans to qualified applicants. This fund would ensure continued access to higher education and support vocational training and skill acquisition programs. By building a robust financial foundation, the bill aims to empower students with practical skills and qualifications that can enhance their employability. - Recovery of Loan Funds
The bill also introduces provisions to ensure the recovery of all debts due to the fund from loans granted to qualified applicants. However, there are conditions under which a loan can be exempted from repayment:- Death of the Loanee
- Considerations of Hardship or Equity
- Impossibility or undue difficulty in repaying the loan, where the expenses involved in recovery would outweigh the amount sought to be recovered.
Importance of the Bill
Senator Bamidele stressed the strategic importance of the bill, noting that it is critical for workforce development and aligns with the policy objectives of the current administration. He appealed to his colleagues in the Senate to pass the bill quickly to ensure the benefits of the scheme are realized without unnecessary delays.
The senators who contributed to the debate supported the bill, commending President Tinubu for his commitment to strengthening access to higher education and making loans more manageable for students. They acknowledged that the proposed changes would help alleviate financial burdens for students and their families, thus making higher education more attainable for everyone.
Legislative Process
Following the passage of the bill for second reading, the President of the Senate, Senator Godswill Akpabio, tasked the Senate Committee on Tertiary Education and TETFUND with making further legislative inputs into the bill. The committee is expected to review the proposed legislation thoroughly and provide a comprehensive report by next Tuesday. This next step aims to ensure that the final version of the bill is well thought-out and effective in addressing the challenges faced by students and educational institutions across Nigeria.
The Student Loans Access to Higher Education Bill 2024 represents a significant step towards making higher education more affordable and accessible to Nigerian students. By addressing gaps in the previous law, the proposed changes aim to provide a more sustainable and transparent loan scheme that benefits students, educational institutions, and the country as a whole. The Senate’s swift action in passing the bill for second reading underscores its commitment to empowering future generations through education.
