A call has been made to President Bola Ahmed Tinubu to abandon the student loan program and embrace the National Student Bursary Scheme.
This call was made by Mojeed Aderemi Afolabi on Wednesday, adding that it was to foster an environment conducive for learning and inclusiveness for students from all backgrounds.
He said “The proposal aims to eliminate the burden of loan repayments for students, urging the government to reconsider its strategy for the benefit of the masses”.
Addressing the President, the advocates emphasize the historic opportunity to pioneer a change that would redefine educational financing. He said “The National Student Bursary Scheme (NASBUS) is presented as a viable alternative, ensuring that students are not saddled with the obligation to pay back funds received for their education”.
“The critique against student loans highlights potential drawbacks, including the creation of a divide between the privileged and disadvantaged, the inadvertent encouragement of financial freedom, the discouragement of post-graduation public service, delays in property ownership, and the imposition of financial stress on borrowers” , he explained.
He said “the scheme will enable students to focus on studies without immediate financial contractual obligations, while acknowledging the initial appeal of interest-free loans, concerns are raised about the potential burden of repayment. The consequences for failing to meet repayment terms, such as imprisonment or other penalties, are noted. Additionally, economic challenges and limited job opportunities exacerbate the difficulties faced by graduates in adhering to loan repayment plans”.
The advocates caution against the student loan program becoming a mirage or replicating past failed initiatives like the defunct People’s Bank of Nigeria (PBN) in 1989 and the underwhelming CBN Anchor Borrower programs. Reference is made to the alarming student loan situation in the United States, where Americans collectively owe $1.78 trillion, prompting the Biden administration to declare it a crisis.
