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The Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024 was finally approved by the National Assembly.
This follows independent reviews of the Committee on Tertiary Institutions and TETFund report by the Senate and the House of Representatives.
In a letter sent to the Senate on Thursday, President Bola Tinubu requested the repeal of the current legislation and included a new one that should be signed into law.
This request was made just one day after it was announced that the student loan program, which would have allowed tertiary students to receive interest-free loans to finish their studies, would be temporarily suspended.
The amendments sought to the Act by President Bola Tinubu, according to an explanatory memorandum made available to reporters, included the removal of the family income threshold as a condition for applying for the student loan.
Tinubu had in June 2023 signed the Student Loan Bill into law to enable Nigerian students to access loans at interest-free rates.
The Senate, thereafter, passed for second reading, a Bill for an Act to Repeal the Students Loan and Access to Higher Education Act 2023 and enact the Student Loans Access to Higher Education Bill 2024.
The student loan scheme was scheduled to take off last Thursday, but the Presidency decided to make some amendments to the bill before implementation which the Senate gave expeditious consideration in plenary.
The chairman of the committee, Senator Muntari Dandutse (APC, Katsina South), presented the report during plenary.
The Senate, thereafter, passed for second reading, a Bill for an Act to Repeal the Students Loan and Access to Higher Education Act 2023 and enact the Student Loans Access to Higher Education Bill 2024.
It also removed the guarantor requirement so that students can apply for and receive loans subject to application and identity verification guidelines as provided by the Fund.
On repayment of loans, the bill indicated that the repayment shall begin as soon as the beneficiary becomes employed in any capacity.
According to the brief, the Fund shall not initiate loan recovery efforts until two years after the completion of the National Youth Service Corps programme.
It pointed out that any person who provides a false statement to the Fund under this section is guilty of a felony and is liable to imprisonment for three years.
It also makes provision for loan forgiveness in the event of death or acts of God causing inability to repay.
