The Senate yesterday passed the Student Loans Act Bill, 2024.The House of Representatives also passed the harmonised copy of the bill into law.
Under the new bill, false declaration attracts three years in jail, while there is loan repayment forgiveness in case of a beneficiary’s death.At the House, Chairman of the Committee on Students Loan, Scholarship and Higher Education Financing, Isiaka Adegboyega, said a joint committee of the Senate and House critically examined the provisions.The student loan programme would have officially kicked off last Thursday, but it was shifted indefinitely.
The ex-lawmaker introduced the bill in 2016 as part of measures to address the funding gaps in tertiary education.The Bill proposes one per cent of all collectable revenue by the Federal Inland Revenue Service to fund the scheme. On eligibility criteria for applicants, the new Bill removes the family income threshold to enable Nigerian students to apply for loans and accept responsibility for repayment according to the Fund’s guidelines.
According to the brief, the Fund shall not initiate loan recovery efforts until two years after the completion of the National Youth Service Corps programme. The brief says: “NELFUND can legally enter contracts, including loan agreements and may also initiate action to ensure repayment by beneficiaries.