Akin Olaoye, who is an Obidient has expressed several reasons why a student loan program wouldn’t work in Nigeria.
He believes that people need to be educated about finances before implementing such a program. Since our society doesn’t heavily rely on credit, the default rate for student loans would likely be high, potentially making borrowers criminals years after completing their mandatory service year.
Additionally, our weak judicial system and police force may struggle to handle civil matters related to loan defaults, so it’s crucial to ensure that records and verifications are completely error-free.
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How students loan can work in Nigeria
He also added that to manage the loan program effectively, it should be administered by private firms that can thoroughly check borrower information using unique identification numbers like the NIN (National Identification Number) and BVN (Bank Verification Number).
It’s also important to clarify if the loans are for local academic institutions only or if they can be used for foreign tuition payments. Private university tuition rates should be regulated to prevent excessive fees and exploitation.
Reaction: Good ideas, bad implementation
Let’s have a look at some of the comments:
@Hassan:Akin, did you read the said Act before giving your submission? Everything you analysed as concerns is clearly stated there. If you haven’t, you may need to check
@Olamilekan:Few days ago, lots of you were shouting that the policy was stolen from your perpetual loser’s manifesto. But because the man y’all hate so much signed a bill that has already been passed by the 9th house into law, it has now become bad policy that Nigeria doesn’t need now?
@loaded:Good ideas, bad implementation
That’s when you know a student only copied the answers but doesn’t know why the answers and correct
@sijax:You have really made sense with these submissions. In this society where a lot don’t really understand how credit works, a lot of education needs to be done before granting loans to anyone. The due diligence must also be effectively done. God bless
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President Tinubu signs student loan bill into law
In another news, President Bola Tinubu has officially approved the student loan bill. Dele Alake, an aide to the president, informed State House correspondents about this development.
The bill allows Nigerian students to borrow money for their education without paying any interest. Dele Alake, a spokesperson for the president, shared this news after the signing ceremony at the Presidential Villa in Abuja.
Alake said this bill would greatly support young people’s educational aspirations nationwide. However, to be eligible for the loan, students must prove they come from a poor background.
