The National Assembly approved the Students Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, following review by both the Senate and the House of Representatives of the Committee on Tertiary Institutions and TETFund.
Less than a year after President Bola Tinubu signed the Students Loan Bill into law, it was sent back to the National Assembly for a complete overhaul.
For eight months, President Tinubu, who promised to provide loans to students, struggled to implement the law, facing criticism for missed deadlines.
President Tinubu forwarded a bill to the National Assembly seeking a repeal and re-enactment of the law, citing challenges with the current provisions.
The proposed amendments aim to address issues such as:
- Inclusion of all students: The proposed bill expands loan eligibility to cover all students, including those in federal universities who don’t pay tuition fees.
- Transfer of operational powers: The new bill proposes transferring fund implementation from the CBN governor to the Managing Director of the Fund.
- Removing guarantors: The bill seeks to remove the requirement for two guarantors, making it easier for students to qualify.
- Children of defaulters: The proposed Act removes the provision disqualifying children of loan defaulters from accessing loans.
- Commencement of payment: Repayment will begin as soon as beneficiaries are employed, unlike the previous two-year grace period.
- Loan forgiveness: The bill includes provisions for loan forgiveness in case of death or inability to repay due to acts of God.
President Tinubu emphasized the need for these changes to improve access to education loans and ease repayment conditions for students.