Problems with Students Loans Act

Investigative journalist David Hundeyin points out eight problems with implementing the Students Loans Act signed into law on 12 June.

I actually just read through this student loan act, and I’ve realised that I’ve been wasting my breath arguing. (President Tinubu) has no genuine intention of giving out any silly student loans.

Na pure booboo. Baba just dey whine 😂

Let me break down these loan conditions based on this:

1. Proof of Income:
   That last line looks so innocent, but guess what? Have you ever tried submitting proof of income to a Nigerian government agency before? You know what document they ask for? That’s right – tax clearance certificate. You know who that excludes? Every blue collar worker!

2. Guarantors
   To get this “student loan,” you need to bring a Director-level civil servant or a lawyer with 10 years post-call history, or a judge. Why would anyone who has access to these people need a student loan?

3. Loan Defaulters
   If the student or their parents have ever defaulted on “any previous loan” (i.e., if they have missed payments on Palmpay, Opay and Lapo before), they are not allowed to apply for the loan! Again, guess who this disqualifies!

4. Liability for loan default
   The Civil Service Director or the judge or the 10 year post-call lawyer serving as guarantor must then write a letter promising to pay the loan if the student doesn’t pay it. They must attach their employment letter or CAC registration document to the letter😂

5. Caveat Emptor
   And the final couple de grâce? “Disbursement shall be on availability of funds” which means in plain English, “Even if you jump through all these hoops, we cannot guarantee that we will actually have the money.”😂

6. Legality
   Nigeria’s legal minimum wage is N30,000/month. To have a household income less than N500,000/year, one or both parents would need to earn less than minimum wage – which is illegal.

7. VC Cover Letter
   Every applicant needs a “cover letter” signed by the institution’s Vice-Chancellor/Rector or student affairs officer. As we all know, University VCs are famously accessible to teenage prospective students from families whose household earnings are below minimum wage…

8. Target Audience
   People from households that make less than N47k/month (requirement to access the loan) are not the people who go to university anyway because day to day survival is more important.

Conclusion
The Student Loan Act is a non-solution to a problem that doesn’t exist.