Students in tertiary institutions across the country believe the proposed penalty for those who default in the repayment of students loan is harsh, while others want the government to provide jobs to aid repayment. CLARION OLUSEGUN (AAUA) reports.
In recent times, the rate at which students quit schooling and later venture into vices is highly alarming. These semi-educated youths go out and constitute nuisance in the name of idleness.
Most times, they attribute their actions to lack of funds and sponsorship, hence, the Federal Government in its drive to address financial constraint affecting students of tertiary institutions introduced students loan.
The National Assembly recently passed the Student Loan Bill to enable students have access to loans for their education.
The bill, which was sponsored by the Speaker of the House of Representatives, Femi Gbajabiamila, was entitled: “A Bill for an Act to provide for easy access to higher education for Nigerians through an interest-free loan from the Nigerian Education Bank established in this Act to provide education for Nigerians and other purposes connected thereto.”
The bill seeks the establishment of the Nigerian Education Bank, which will have the powers to administer, coordinate, supervise and monitor the management of student loans in the country. It will also receive applications for student loans through higher institutions on behalf of the applicants and screen the applications to ensure that all requirements for the grant of such loans under the Act are satisfied.
Also, the bank shall have the powers to approve and disburse to qualified applicants and ensure compliance with disbursement, and monitor academic records of grantees to obtain information on their year of graduation, national service and employment to ensure that grantees of the loan commence repayment as and when due, among other functions.
According to the Act, students seeking higher education in public institutions shall have an equal right to access the loan without any discrimination arising from gender, religion, tribe, position or disability.
On the repayment plan, the bill recommended that any beneficiary of the loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps (NYSC) programme. It also recommended that repayment shall be by direct deduction of 10 per cent of the beneficiaries’ salary at source by the employer and credited to the students’ loan account to be prescribed by the bank.
However, the bill also recommended two years’ imprisonment, N500, 000 or both for students who default in repayment or anyone found aiding defaulters.This has elicited mixed reactions from many students.
Chairman, National Association of University Students (NAUS), Campus Monitoring Committee, Osun axis, Ayobami Eruobami, said students’ loan was not advisable as it would cause problems later.
He said: “Unemployment rate in the country is increasing daily. We have graduates who are yet to get a job. So, students who are given loan to study in higher institutions may not be able to refund the loan even when they graduate because it’s more than evident that there are no jobs for them.”
Mujeeb Oyetomiwa Oyetunde, a 200-Level Civil Engineering student at the University of Ilorin, questioned if loan should be granted to students before accessing education.
His words: “Is it a must that students should get loans to be educated? Why must the government lend money to the students to pay for schooling? Nobody wants to give, but everybody wants to take.
“The only reason I think one should get a loan is when you’re into business. Should we say education is now a business for the government or students or both parties? Since you get a loan to run education/business, you must be at least 100 per cent sure of profit and if reverse is the case, what happens? How sure are you that you’re going to get the government job after school or equivalent to cater for your needs let alone pay for loan?”
The Vice President, Southeast, NAUS, Ihejieto Dominic Ikenna, of the Federal University of Technology, Owerri (FUTO), said the recent bill would be useful to students and promote their welfare, interest and academic progress.
Emphasising the need for defaulters’punishment, he said: “The penalty has to be stated to monitor students and be assured that the purpose for the loan is met.”
Abdulrasheed Akere, a 200-Level student of Usmanu Danfodiyo University, Sokoto (UDUS), said the motive of the bill is to help students and parents in one way or the other.
He however, urged the government to be considerate, stating: “The hardship in the nation, the rate of unemployment is very high. How can an unemployed graduate repay loan collected? In this regard there should be provision of job opportunities. The recommended penalty is too harsh, it will make students run away from collecting it, so the bill will not serve it purpose.”
David Agboola, a final year student of Computer Science, Federal University Kashere, Gombe State, said: “The Bill is good in the sense that it will reduce to the barest minimum the number of the defaulters, as we all know generally that Nigerians have bad loan habit, with the Bill being passed, it will make any student who aim to default on the loan think twice.”
Dada Bamidele Joel, a 400-Level student at Lagos State University, said: “What is the major objective of the loan? He, therefore, stated that students do not need a loan as education is not a business.”
A 300-Level student, Federal University Oye-Ekiti, who pleaded anonymity, said: “The loan is a great innovation, no doubt about that, as it will assist students and their families or parents. But the punishment attached to not paying back as and when due is quite irrational. Imagine a student who is struggling to become a graduate now detained in police cell, not because of a crime, but because he or she took advantage of a scheme the government of his or her country provide to assist education.”
He suggested that rustication or withholding the results or certificates of the debtors is better than the grievous punishment.
Victoria Okunola, a 100-Level student of Osun State University, is not happy with the punishment for defaulters. She said: “Most students are not really having much money. The loan, I believe, will help in payment of little bills as we can’t depend on our parents for everything. And for people who don’t have parents or dependable guardians, it will go a long way in helping them. But I don’t agree with the penalty, it is too much.”
Oluwasemiloore Ajayi, a 300-Level student at Adekunle Ajasin University, Akungba-Akoko, said: “It depends on the amount that can be borrowed. If it’s a large amount of money, then it might not be realistic for them to pay up the money. Even at that, I feel like the penalty is harsh.”
Esther Okeleye, a student at Moshood Abiola Polytechnic, noted that the student loan bill is a perfect agenda to assist students, who sometimes find themselves in financial crisis. She pleaded for a milder penalty.
Also, Ukah Ferdinand Chigozie, a fresh graduate of Ebonyi State College of Education, an affiliate of Ebonyi State University, said: “I guess the National Assembly should not attach fine to it. Instead, they can easily allow the student to graduate first before talking about paying back, and provide jobs for graduates, and not talking about paying fine or imprisonment, because, if the student gets a job immediately after school, he/she will be able to repay.”
Chika Ajah, a student Alex Ekwueme University, Ebonyi State, said: “If this bill is passed, it will be helpful but at the same time it’s detrimental in the future.
“Lack of jobs and stated ages by organisations are factors that would affect indirectly. If students collect the loan and there are no available means to repay due to no jobs, it means they will be put behind bars or a huge sum is required.
“This can be realistic with job availability and a certain amount of time given, according to the amount collected.”
