STUDENT LOAN SCHEME…Concerns Over Disbursement Modalities Stall Takeoff

As Nigerians continue to look forward to the rollout of the student loan scheme, a cloud of uncertainty looms large as concerns regarding its disbursement modalities delay its much-anticipated takeoff.
On Tuesday, the executive secretary of Nigerian Education Loan Fund, Akintunde Sawyer, had announced that the take-off of the loan scheme had again been postponed due to some corrections that were being made around the launch.

The indefinite suspension has since sparked widespread frustration among students and parents who want immediate takeoff of the programmme.
The announcement suspending the loan scheme came barely a few hours to the launch that was scheduled for today (Thursday).

Prior to its suspension, LEADERSHIP had reported earlier how the government had kept postponing the commencement of the student loan since last year.
In June 2023, President Bola Tinubu signed a bill to start a Student Loan Fund that would give interest-free loans to indigent Nigerians to study in higher education.
A former Speaker of the House of Representatives, Femi Gbajabiamila, proposed the bill, and it was supposed to start between September and October 2023.

However, Tinubu said the programme would begin in January 2024, after missing the October deadline.
In January, the minister of state for education, Yusuf Sununu, said at a meeting that preparations for the programme were finished. This, according to him, included making the Student Loan Scheme website and planning how to start the programme.

LEADERSHIP also reported how the government failed to meet the January deadline in its February 1, 2024 publication.
Also, Tinubu told leaders of the National Association of Nigerian Students (NANS) that the programme would start once the government had added more features, like vocational studies.
NELF executive secretary, Akintunde Sawyer, said, “Unfortunately, I won’t be able to commit to a specific date. We are sort of waiting to ensure that all the stakeholders are aligned to make sure that nobody is blindsided, then we can actually roll this out in a meaningful, comprehensive, wholesome and sustainable way.”

Many students have expressed frustration and disappointment with the federal government’s handling of the student loan programme, stating that the lack of seriousness and preparation has left them with no choice but to seek alternative means of financing their education.
Unexpectedly, the National Association of University Students (NAUS) has condemned the decision of the federal government to once again postpone the launch of the Nigerian Students Loan Scheme (NSLS) indefinitely.

It also described the suspension of the loan as a blow to the credibility of the government, even as it urged President Bola Ahmed Tinubu to dissolve the Student Loan Board as its members had shown that they are not capable of carrying out the assignment.
Reacting to the suspension, the president of NAUS, Comrade Marshall Obaji, also demanded the reversal of school fees increases if student loans fail to materialise.

He said it is a slap to the federal government that the issue of student loan has been postponed again and again. “The postponement is not a good one for the government. You don’t bring up a plan when you know you have not gone through the necessary process, because from what I got the ES of that student loan scheme has not tested the system, even the portal or the app, before he made that announcement, which is a blow to the government, a blow to president Asiwaju administration.
“We have been getting promises since January that at the end of January the thing will kick off. Now we are in March; it’s just like we have been used to play games.

“We are no longer comfortable with it; if the government cannot go ahead with it, let them cancel it and reverse increment of school fees because every university management will tell you that the government has given them the go-ahead to increase the fees because the student loan is coming, but it is not, and the school fees keep increasing. So the university students are not happy with this; we condemn it in totality.”

A parent, Mr. Francis Kuma, who resides in Karu, Abuja, said the government should stop postponing the loan scheme but fast-track its implementation for the benefit of the students.
“I simply cannot comprehend how the government expects parents to afford these exorbitant school fees, especially now that the student loan scheme has been suspended indefinitely.
“It feels like a double blow to our family’s financial stability and the future of our children. Let the government reverse the school fees hike in tertiary institutions or implement the loan scheme,” he said.
On his part, Dr. Salahu Mohammed Lawal, the zonal coordinator of the Academic Staff Union of Universities (ASUU), Abuja zone, has questioned the efficacy of the loan scheme.
He said since the idea was mentioned, the Union has lacked confidence in the scheme. “From day one, we, ASUU members, didn’t even have confidence in that student loan scheme because we don’t trust the government.

“The government was trying to use that as a diversionary method of not funding tertiary education, unfortunately, Nigerians and students misunderstood the stand of ASUU and so we decided to let them do whatever they to do. “Now you can see, they promised that they would launch it this year but they have now postponed it indefinitely. That is to tell you that the federal government has no interest in education. Number two, assuming that the loan is for the benefit of members of the government, they might implement it without waiting for the deadline.

“But to us in ASUU we don’t even have confidence in the scheme,” he added. “So as far as we are concerned, if they wish, or they don’t wish is left for them.
Meanwhile, the executive secretary of Tertiary Education Trust Fund (TETFund), Arch. Sonny Echono, has said the launch of the student loan scheme had only been postponed for a couple of weeks and not indefinitely.
Echono explained that the delay in the launch was only to make sure that there are no complications in the proper implementation of the scheme, as they want to ensure that the scheme is up to standard
“The loan has not been postponed indefinitely, there’s just a little house keeping that needs to be done; the president has arrangements in place for the launch.
“We are discussing a matter of days, maximum weeks, for it to take-off. The president is very committed to this, and I can assure you that this is going to be done in the best way.
“We don’t want to hurriedly launch the programme, and there are objections, and it isn’t sustained”
“We’re making sure that the loan can accommodate as many that need it. Even people with skills, it’s going to be a game changer. We’re working hand in hand with JAMB; we know when admissions will commence, so we are not far behind.”

Loan Postponement Not Indefinite – NELFUND
However, the Nigerian Education Loan Fund (NELFUND) has stressed that the postponement of the student loan scheme is not indefinite as alluded to in the media reports.
In a press statement signed by Nasir Ayitogo on behalf of the executive secretary of NELFUND, the Fund said it is 100 per cent set for the launch as the loan application portal is ready,
The statement reads in part,” The management has been drawn to reports in some sections of the media, particularly social media, suggesting that the launch of the most-anticipated student loan scheme, initially scheduled for Thursday, March 14, 2024, has been postponed indefinitely.

“It will be recalled that the executive secretary of NELFUND, Mr. Akintunde Sawyerr, in a television interview on Tuesday, March 12, 2024, disclosed that the postponement was necessitated by the need to have all stakeholders fully aligned before the formal flag-off by President Bola Ahmed Tinubu.
“For the avoidance of doubt, NELFUND is 100 per cent set for the launch. The loan application portal is ready, and President Bola Ahmed Tinubu has since approved the funds for the smooth take-off.
“Students are advised to seize the opportunity and apply for the loans as soon as it is launched at a date to be determined by the president.”

Tinubu Still Committed To Scheme – Presidency
The presidency has affirmed President Bola Tinubu’s commitment to the student loan scheme, despite the recent postponement of its launch.
Speaking after the Federal Executive Council (FEC) meeting yesterday, the special adviser to the president on information and strategy, Bayo Onanuga, stated that final touches are being put in place for the flagship programme.

The federal government had on Tuesday announced the indefinite postponement of the scheme’s launch, which was initially scheduled for Thursday (today) .
However, Onanuga assured that a new date would be announced soon.
On his part, the minister of information, Mohammed Idris, said the president is not stopping or suspending the student loan scheme.

On June 12, 2023, President Tinubu had signed the Access to Higher Education Act, 2023 , into law to enable indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution. The Act, popularly known as the Students Loan Law, also established the Nigerian Education Loan Fund, which is expected to handle all loan requests, grants, disbursement, and recovery.
The student loan bill was sponsored by Femi Gbajabiamila, the immediate-past speaker of the House of Representatives who is now chief of staff to the president.
Based on the provisions of the legislation, the fund is expected to receive and screen applications for student loans through higher institutions on behalf of the applicants.