BOON OR BANE: THE STUDENT LOANS (ACCESS TO HIGHER EDUCATION)(REPEAL AND REENACTMENT) ACT, 2024
The Student Loans (Access to Higher Education) Act, 2024, signed into law by President Bola Tinubu, heralds a new era for Nigerian students and youths seeking access to quality higher education and vocational training. The historic significance of this legislation cannot be overstated, as it addresses critical challenges faced by the previous Student Loan Act of 2023 and introduces comprehensive amendments aimed at ensuring sustainable higher education opportunities for all.
One of the primary reasons for amending the previous act was to tackle governance and management issues, eligibility criteria, application processes, repayment provisions, and loan recovery. The new act, through the establishment of the Nigeria Education Loan Fund (NELFUND), addresses these concerns head-on. NELFUND is empowered to provide loans for tuition, fees, charges, and upkeep during students’ studies in approved tertiary academic and vocational institutions. This ensures that financial barriers do not hinder deserving students from accessing higher education or skills acquisition programs.
The act also introduces a clear separation between governance functions and management operations by establishing a board of directors and a management team. This structural change enhances accountability and transparency in the administration of the fund. Additionally, the act defines the resource structure of the fund, ensuring financial sustainability through the establishment of the General Reserve Fund and revenue allocation mechanisms.
Perhaps the most significant amendments are those related to eligibility criteria and loan repayment. The removal of the family income threshold and guarantor requirement expands access to loans for Nigerian students, while also removing barriers based on parental loan history. Moreover, the provision for loan forgiveness in cases of death or extreme circumstances demonstrates a commitment to fairness and social responsibility.
However, despite its many benefits, some may argue that the act could pose challenges in terms of loan recovery and fiscal sustainability. The two-year grace period before initiating loan recovery efforts, coupled with the possibility of extending enforcement actions, raises concerns about the fund’s ability to recoup loans in a timely manner. Additionally, the reliance on tax revenue for funding may expose the fund to fluctuations in government revenue, potentially impacting its ability to meet loan demand.
In conclusion, the Student Loans (Access to Higher Education) Act, 2024, represents a significant step towards ensuring equitable access to higher education and skill development opportunities for Nigerian youths. While it addresses key shortcomings of the previous legislation and introduces progressive reforms, its long-term effectiveness will depend on proper implementation, monitoring, and periodic review to address emerging challenges and ensure the sustainability of the education loan program.
