Wednesday saw the passing of the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024 by the National Assembly.

This comes after the Committee on Tertiary Institutions and the TETFund’s report was separately reviewed by the Senate and the House of Representatives.

Last Thursday, in a letter to the Senate, President Bola Tinubu requested the nullification of the current law and presented a new one for approval.

This application was made just one day after it was announced that the student loan program, which would have provided interest-free loans to tertiary students to finish their education, would be temporarily suspended.

In order to provide interest-free loans to Nigerian students, Tinubu signed the Student Loan Bill into law in June 2023.

Subsequently, the Senate approved the Student Loans Access to Higher Education Bill 2024 and nullified the Students Loan and Access to Higher Education Act 2023 for a second reading.

Last Thursday was supposed to be the start of the student loan program, but the President chose to make some changes to the bill before it went into effect, and the Senate quickly considered those changes in plenary.

The report was delivered in plenary by committee chairman Senator Muntari Dandutse (APC, Katsina South).

The bill was submitted to the Dandutse committee last week by Senate President Godswill Akpabio, who instructed them to carry out their legislative duties and submit a report within a week.

An explanatory memorandum provided to media stated that President Bola Tinubu intended to change the Act, among other things by doing away with the requirement of a family income level in order to apply for a student loan.

Additionally, it did away with the need for guarantors, allowing students to apply for and be approved for loans based on the Fund’s identity verification and application requirements.

Furthermore, candidates who are students can no longer be rejected on the basis of their parent’s debt history.

A justice and fairness provision was instituted, requiring the board to guarantee a minimum national distribution of loans approved and disbursed for each fiscal year.

Regarding loan repayment, the bill stated that it will start as soon as the beneficiary secures employment of any kind.

The brief states that two years after the National Youth Service Corps program is over, the Fund will begin steps to recover loans.

The statement indicated that a recipient could ask the fund to continue enforcement action by submitting a written affidavit proving he is unemployed and unpaid.

It made clear that anyone who gives the Fund a false statement in violation of this clause faces criminal charges and a three-year prison sentence.

In the event of death or other unforeseen circumstances that prevent repayment, it also provides for loan forgiveness.