In a move aimed at revamping the student loan scheme, the Senate has advanced the Students Loans Access to Higher Education Act (Repeal and Enactment) Bill, 2024, to its second reading stage.
This significant legislative step comes in response to a correspondence from President Bola Tinubu, urging the Senate to repeal the existing law and enact a fresh bill to address the evolving needs of students in tertiary institutions.
This request comes a day after the announcement of a temporary suspension of the commencement of the student loan scheme which would allow students of tertiary institutions access interest-free loans to complete their studies.
During the plenary session, Senator Sani Musa proposed a novel approach to sustain the student loan fund, suggesting the allocation of a percentage from bank charges.
This innovative financing mechanism aims to ensure the long-term viability and sustainability of the student loan scheme, providing a stable source of funding to support students in their pursuit of higher education.
The passage of the bill garnered widespread support and commendation from several lawmakers who participated in the debate.
The executive bill not only seeks to overhaul the student loan framework but also addresses critical challenges related to the management structure of the Nigerian Education Loan Fund (NELF), eligibility criteria for applicants, purpose of loans, funding sources, and disbursement mechanisms.
