Student Loan Scheme: NANS Seeks Postponement Of Launch

The scheduled online application launch of the Student Loan Scheme by President Bola Tinubu on February 21 this year may face postponement, as the National Association of Nigerian Students (NANS) is requesting a delay. They claim that the event should be postponed due to alleged neglect of input from students.

According to investigation by Vanguard, the Executive Secretary of the scheme has not been able to meet the leadership of the student body and get their input into how the scheme should be made to work.

Students describe the situation as trying to shave somebody’s head behind his back.

When contacted on the phone, the National President of NANS, Comrade Lucky Emonefe, told our correspondent that the association would submit a letter to the President regarding the issue.

“Yes, we are not happy with the way the issue is being handled by some people saddled with the running of the scheme. Up until now, the Executive Secretary has not met with students to get their input into how they want the scheme to run. We are writing a letter to President Bola Tinubu that the launch of the app be put on hold.

“We are submitting a letter to the President and we want His Excellency to listen to us and put the launch of the app on hold. You cannot have a scheme or programme meant for students and the students would not be able to make contributions. We are going to request that the launch be put on hold until our observations are taken note of, “ he said.

Emonefe also mentioned that NANS frowns at including students in private higher institutions as beneficiaries.

“If a man can afford to send his child to a private university where over N1 million is charged as fees why should such a person begin to struggle for a loan that may be less than N200,000? Such is for students in public schools. If they include  students in private schools as beneficiaries, it may prompt public schools to further raise their fees. We want as many students as possible in public schools to benefit.

“As for the financial status of families of beneficiaries, we want as many indigent students as possible to benefit. Anybody who earns N500,000 and above as annual income should be able to sponsor their wards. We also don’t want the provision that one needs two civil servants in grade level 12 and above, as guarantors. Not many students would be able to meet that condition. We want students to only show evidence of being indigent, “ he added.

On how the body wants the money paid to beneficiaries, Emonefe said those in need of tuition fees would have their money paid to their schools, for accommodation purposes, the money would be paid directly to their landlords, and those who need pocket money would have their  money paid into their accounts.

Recall that the FG, had on a number of occasions given January 2024 as the launch date for the scheme, after it could not start late last year.

The major areas some stakeholders want amendments to are the eligibility for the scheme, those to serve as guarantors for beneficiaries and the repayment period.

Apart from being a student of a higher institution in the country, other main conditions to benefit from the scheme are that: The applicant’s income or family income should not exceed N500,000 per annum;

The applicant must provide a minimum of two civil servants as guarantors. These guarantors should either be at least at level 12 in the civil service or meet the following criteria: a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of the Peace; among others.

Repayment of the loan will commence two years after the completion of the National Youth Service Corps (NYSC) programme, and the repayment amount will be deducted directly from the beneficiary’s salary at a rate of 10% by the employer, while self-employed beneficiaries will remit 10% of their total monthly profit to the designated Students Loan account prescribed by the bank.

Furthermore, Section 6 (f) of the Act incorporates a system for continuous monitoring of academic records of the grantees of the loans. It, however, does not provide any approach towards reviewing the courses and curriculum of the students to reflect economic realities to achieve the successful repayment of the loans.

Similarly, parents under the aegis of the National Parent Teacher Association of Nigeria, NAPTAN, through the National President, Alhaji Haruna Danjuma, have said they were not carried along by the FG in the design, plan and even execution of the scheme.

“We were not invited for any meeting regarding the planning of the scheme. Not even being asked for any suggestion and parents are critical stakeholders in the education sector. It is like the government feels it only has to relate with students and that is all. “We have some reservations about some provisions of the law setting up the scheme. For instance, the issue of repayment of the loan; where are the jobs for the beneficiaries to engage in after leaving school? We have other observations, but they have not given us the chance to make any input. Can it really take off this month? Let us wait and see, “ he said.