Chairman, House of Representatives Committee on Student’s Loan, Hon. Gboyega Isiaka on Thursday assured that the students’ loan will commence any moment noting that all delays and encumbrances have been removed.
The Chairman however disclosed that students of privately owned institutions are exempted from the scheme.
According to him, the first beneficiaries of the scheme will be Nigerian students of government-owned tertiary institutions and those who prefer skill development to university education.
Hon. Isiaka, while speaking to journalists during a press briefing held in Abuja said “For anybody that has the capacity to send his or her children to some of those private schools, you will agree with me that the need for such loan is probably minimal.
“But talking seriously, the thing that I know is that if you look at section 2 of the law, it says that the Nigerian Student’s Loan is set up to manage a group of funds.
“This is a particular stream of funds meant for public tertiary education and I know that plans are to see what can be developed for private education.”
He however said that Nigerian Students studying in private Tertiary Institutions can leverage the provisions of section 6 of the law which provides that loans shall cover school fees and maintenance.
The Lawmaker further disclosed that the quantum of funds required for successful implementation of the Student Loan will be drawn from one per cent of all revenues accruing into the Federation Account.
“Section 6 of the law provides that the fund will from time to time at least once a year reel out guidelines for the loan, every year.
“It’s the guidelines that will actually give more details about some of those things. In terms of school fees, maybe another class of funds will take care of that,” he noted.
In the bid to address the challenge of repayment, Hon. Isiaka disclosed that there are adequate provisions in the law that will address the concerns.
According to him, “Section 29 of the law says, as an employer of labour, once this law comes to be before you employ anyone you must check or ascertain education loan status. And if you don’t, there are penalties for it, both in terms of payment and fine and also imprisonment.
“And if you are a private person and also become an Employer of yourself, and if you don’t do it, there’s a law against you.”
He disclosed that anyone convicted is liable to a N2 million fine or 3 months imprisonment or both.
Nigerians of the present administration’s resolve towards ensuring adequate funding of Student Loans for the benefit of Nigerians studying in publicly owned Tertiary Institutions across the country.
While applauding the initiative, Hon. Isiaka explained that the repeal of the initial Student Loan Act was necessitated to remove all encumbrances that may deprive a lot of Nigerian Students from accessing the Loan.
He said: “The patriotism and determination to make sure that this is a sustainable success still made the Executive and Mr President, in particular Tom, present those far-reaching amendments which have not become law.
“The law has amended so many shortcomings in the 2023 law in the area of funds that we have. Now we have a known corporate entity that is called the Nigerian Education Trust Fund. We now have an institution that is strong, sustainable and comparable to what we have in different parts of the world and going by all that will come into it.”
While expressing satisfaction with the initiative, Hon. Isiaka said: “I am satisfied in my mind that the Nigerian government under President Bola Ahmed Tinubu has done so well for the Nigerian educational sector.”
Responding to questions on the possible takeoff time of the scheme, he expressed optimism that the Executive will expedite action on the setting up of the management team of the Institution without further delay.
While stressing that “everybody is in a hurry to get this done,” Hon. Isiaka expressed optimism that the management of the National Education Trust Fund when constituted will be given a marching order to commence work in earnest for the benefit of millions of Nigerian Students.
Hon. Isiaka who averred that the Education loan has both economic and social benefits, explained that the Student Loan is interest interest-free loan with and flexible repayment arrangement.
According to him, the Student Loan “covers both Tertiary as well as skills and vocational education. And the law also makes provision for repayment which is done immediately after you finish school.”