The recently approved students Loan Scheme is to commence in the next academic year which is expected to be in September or October 2023.
This was disclosed at the resumed hearing of the House of Representatives Ad-hoc committee on Students Loan Fund and Access to Higher Education in Nigeria, holding in Abuja.
The Committee is also proposing an increase of 3% for students loan as against the initial 1% proposed.
The public hearing was to ascertain the level of progress made so far, by a Presidential Committee put together to remove all legal matters hindering access to the loan by Nigerian students.
The Chairman of the Committee, Hon. Terseer Ugbor, proposed an upward review from one percent to three percent from revenue generated annually from the federal account.
He said that the upward review was to enable the federal government fulfill its agenda of ensuring every Nigerian student has access to funds to complete his or her educational pursuit, despite the financial constraints caused by the removal of fuel subsidy in May this year.
He however said that the lawmakers were not convinced that the technical committee was conscious of these concerns of Nigerians who are groaning under the present harsh economic conditions as the pace of implementation was said to be slow.
The chairman advised on the need to fashion out how the implementation will get to students in states and local governments to ensure that every Nigerian benefits from the program.
A member of the Presidential Technical Committee on Student Loans and Director, Legal Service Department and representative of the Central Bank of Nigeria, Mr. Kofo Salam Alada informed the committee that modalities have been put in place to begin the implementation of the programmme.
He pointed out that certain amendments should be considered for the success of the Student Loan scheme.
He emphasised the need to reconsider eligibility criteria, “specifically the requirement that students applying for loans must have a level 12 civil servant as a guarantor.”
Mr. Alada assured the Ad-hoc Committee that implementation can commence from next academic session which will take off in September to November depending on the institution in question.
The Permanent Secretary of the Ministry of Education and member of the Presidential Technical Committee, Mr. David Adejo, said that there has been a significant progress in the drafting of a legal framework that will guide the implementation of the students loan act.
The committee warned against any increase in school fees as a result of government appropriations for student loans.
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