Convert student loan to grant for poor students – ASUU tells Tinubu

The Academic Staff Union of Universities (ASUU) has requested President Bola Tinubu to convert the recently approved Students Loans Act into a grant for underprivileged students.

ASUU National President, Prof Emmanuel Osodeke, expressed this sentiment during an interview on Channels Television on Sunday, June 18. He suggested that the funding should be provided as a grant rather than a loan, particularly for students from economically disadvantaged backgrounds. Osodeke argued that since the funds come from the Federation Account, it would be more appropriate to label it as a grant. He also highlighted concerns about the potential burden and repercussions faced by students who may struggle to repay the loans, including the risk of imprisonment.

President Tinubu had signed the Students Loans Bill into law last week Monday, fulfilling a promise made during his campaign. The legislation aims to provide interest-free loans to financially needy Nigerian students. The bill was sponsored by Femi Gbajabiamila, the Speaker of the 9th House of Representatives, who now serves as the President’s Chief of Staff.

However, Osodeke criticized the feasibility and sustainability of the loan program. He pointed out past failures of similar initiatives, where borrowers did not repay their loans. He also emphasized the limited coverage of the loan, considering the large number of students in public universities across Nigeria. The ASUU President further stated that the stringent requirements to access and repay the loan would likely disqualify a significant majority of students.

In highlighting the potential consequences, Osodeke mentioned cases of suicide among loan beneficiaries in other countries and cited the recent actions of President Joe Biden in the United States to alleviate the burden of bank loans. He argued that instead of burdening students from families earning as little as N30,000 a month with loans, alternative methods of funding education should be explored.