The National Assembly has approved the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, following thorough deliberations by both the Senate and the House of Representatives, based on the Committee on Tertiary Institutions and TETFund report.
The catalyst for this legislative overhaul was President Bola Tinubu’s call for the repeal of the existing law and the introduction of a new bill, a day after the temporary suspension of the student loan scheme’s launch. The scheme aimed to provide interest-free loans to tertiary institution students, initially endorsed by Tinubu in June 2023 to facilitate access to interest-free loans for Nigerian students.
After passing the Bill for an Act to Repeal the Students Loan and Access to Higher Education Act 2023 and introduce the Student Loans Access to Higher Education Bill 2024, the Senate expedited the process, making amendments as per the Presidency’s directives before implementation.
Senator Muntari Dandutse (APC, Katsina South), the committee chairman, presented the revised bill during the plenary session, emphasizing the removal of the family income threshold and guarantor requirement, ensuring streamlined access to loans based on application and identity verification guidelines.
Notably, the reformed act eliminates disqualification based on parent’s loan history and mandates a fair distribution of approved loans annually. The repayment structure now commences upon employment, with the Fund refraining from loan recovery efforts until two years post National Youth Service Corps completion.
Furthermore, beneficiaries facing financial hardship can request enforcement action extensions by providing sworn affidavits, with severe penalties for providing false information to the Fund. The act also incorporates provisions for loan forgiveness in cases of death or unforeseen circumstances preventing repayment, marking a significant step towards equitable and accessible higher education financing in Nigeria
