www.theairmingle.com/will-student-loans-work-in-nigeria


A highly educated populace is perhaps the springboard for rapid advancement in different spheres. Access to education, specifically tertiary education; is a challenge in many parts. Governments of several countries have devised access to student loans as one of the ways of ensuring tertiary education for the majority of their citizens. The system is not without its drawbacks, but countless citizens have enjoyed some of its benefits. In the United States, student loans are sponsored by its Federal Government or private entities like institutional loans which are made available by schools. Such loans are typically repayable in well defined installments, and can be paid based on income and not necessarily based on how much is owed. In 2016, Femi Gbajabiamila, a Nigerian law maker sponsored a bill for the provision of student loans in order for students to have access to higher education. He also canvassed for the establishment of an educational bank to make the loans interest free. The bill scaled second reading. Unanimously approved by members of the house, the bill was referred to the committee on tertiary education by Yakubu Dogara, the speaker of the House of Representatives. The Positives When passed into law and properly implemented, many Nigerians who lack access to funds for tertiary education will have many reasons to smile. The move would be greeted with applause. It would go a long way to significantly increase the number of citizens who would benefit from tertiary education. Nigeria’s human resources would be positively affected, and this can only bode well for the country’s fortunes. The number of school drop outs will be reduced, and students will be challenged to aim for the peak of education. Lagos based Educationist, Angela Nwoko remarked that only proper implementation can ensure that the masses benefit from such legislation. She expressed hope that the bill would be passed into law very soon. In advanced countries, repaying such loans could pose challenges. This is because of the relatively higher costs of tertiary education. There have been reported cases of extreme actions by student loan defaulters. This is where we probably have the advantage because the cost of tertiary education is relatively cheaper, especially in federal institutions. Some federal universities charge less than N40,000 per student as school fees. For a course duration of 4 years, the cost could be at least N160,000. Increased access to tertiary education can also mean improved health care, technological innovations and increased skilled labour. It would be criminal for about N200,000 to act as a stumbling block for that highly intelligent and driven child whose parents are not financially capable of sponsoring tertiary education. The Challenges Implementation: Only a properly working structure would ensure that such venture sees the light of day, and remains sustainable. The blocks of of corruption and nepotism amongst others must be destroyed to ensure working systems. How would the beneficiaries be selected? The high rate of unemployment is a huge challenge. Generally, such loans can be repaid easily if graduates become salary earners. Beneficiaries who are without jobs will find it hard to repay loans. Unemployment must be tackled through the creation of enabling environments for job creation, encouragement of the spirit of entrepreneurship, and fundamentally, a better Economy. This policy has the ability to be far reaching, and would be laudable if properly carried out. Fingers crossed.