Should Students Appreciate the FG For Students' Loan Scheme?

Adeniran Tolulope

Students might have come across a social media graphics where the National Association of Nigerian Students, NANS, indicated its interest in holding a Solidarity Walk to appreciate the Students' Loan Scheme which was recently signed into law by the Federal government of Nigeria. A question that have been the title of discussion among many students is "Should Nigerian students appreciate the FG's scheme of borrowing them money to finish their Education?"

In June 2023, the Bola Tinubu-led Federal Government sent a first bill to the Senate, and later forwarded another a second time after a comprehensive review, before it was approved by the lawmakers in April 2024. Recall that the Students' Loan Scheme was part of the agenda of the Renewed Hope, which was the Campaign theme of the President Bola Ahmed Tinubu during the 2023 General Elections. Many citizens viewed it as a strategy to win the election at first, but unlike previous administrations, it became a reality; a fulfilment of the promise.

Meanwhile, prior to the commencement of the 2022/2023 academic Session, there was an announcement indicating a significant increase in tuition fee for students across higher institutions in the country. In Obafemi Awolowo University, Ile-Ife, a lot of students struggled to ensure payment was achieved before the stipulated deadline. Several others depended on their parents and guardian while another category either took a leave of absence or dropped out due to the insane hike. 

The whole brouhaha made it look like a situation whereby the students would no longer have hope for free education in Nigeria, but with the emergence of the Students Loan Scheme, hopes have been raised high again.

Now, how does the Students Loan Scheme work? For a start, students would have to apply for the loan, for it to be granted unto them. But a critical question is, as we all know it's a loan, how will the students pay back for it? Well, in the future, probably when they've graduated from school and gotten a job, they would be expected to pay back their loan in bits. While the benefit of the scheme stands, the negative side effects too stands. 

Let's assess a situation whereby a student borrows a loan amounting to 1 million naira, before he or she graduates, given the interest and the period of time for him or her to repay back, it may be difficult for the student to cope with the future, which is filled with the aftermath of the money he or she has borrowed. 

This is because the loan will be removed from part of the money he might have in his savings in that future time. This could be difficult economically for that student, if he secures a job with a low paying wage. 

With rising amount of tuition fee from time to time, it may be difficult for graduates who have applied for the loan, to repay back the loan, leading to financial distress. Students Loan bill may perpetuate a culture of debt dependency among the students, which will encourage them to take on significant financial obligations at young age.

Certainly, students would be able to cope with and focus on their studies, while they know that there is a source they can borrow funds to finance their studies. In fact, depending on the Federal Government to provide them money to fund their Education will be, for some, a very good decision such that they would have access to Education, and would enable them to improve their future prospects. 

While we await the commencement of the programme, students have been debating whether it is the real solution to the problems of Nigeria education sector. Somehow, they literally concluded their arguments that the Federal Government is trying to build up a future for the young ones, whereby there will be no economic issue, because the students would be source of revenue in that future time.

The students who make this positive affirmations acknowledged the role of students loan bill in stimulating economic growth. The National Association of Nigerian Students have called out to the general public, especially the Nigerian students to enjoin them to show a solidarity appreciation to the President of Nigeria. While some students immediately condemned the appreciation, others seems to remain neutral to it. Some students even viewed the Students' Loan as a necessary evil that may saddle them with debt for years even after their graduation from schools, limiting them of financial freedom and opportunity.

In conclusion, NANS should instead look at the possible threats this might pose on students' future before they stand to take their actions on trekking along the streets to appreciate the students' loan bill. The leadership of NANS, for a certainty, are the ones who should have stood against the students' loan bill and ensure tuition fees in Federal Universities in Nigeria are reduced. But see where we are today? A tool for partisan politics.