The Academic Staff Union of Universities (ASUU), says the proposed students loan scheme would create more problems than the ones it is trying to solve.
ASUU President, Professor Osodeke made known the position of the union on the scheme at the second day of the National summit on tertiary education reform summit in Abuja.
According to him, with the current high rate of unemployment in the country, it would be impossible for students to repay such loans after graduation.
Prof Osodeke also criticised the proposal of N250,000 per session as tuition fee, where a student would apply for a loan of N500,000 to pay and sustain his/herself.
According to him, this means that any student who could not access the loan is at the risk of forfeiting university education considering the level of poverty in the land as well as the current minimum wage.
“ASUU would never support the issue of education bank because the poor would not benefit from it. The best solution is adequate funding for Universities”, he said.
Dean of post graduate studies, Lead city University Prof Afolakemi Oredein, observed that if implemented the next problem is accessibility for those students who need it as well as repayment.
She argued that the loan scheme should be private sector driven to make it more efficient.
Director-General, Bureau for Public Sector Reform Dr Dasuki Arabi, observed that student loans relieves pressure on national budgets by facilitating greater cost sharing through the raising of tuition and other university fees.
“A typical public university can survive effectively on a tuition fee of N250,000 per session and an all-in annual loan of N500,000 can take a student through each academic year.
At the end of a 4-year programme the student leaves the university with a debt of N2,000,000 repayable over a 20-year period at a fixed interest rate of 1%. With funds availability, staff of universities are paid, students will receive lectures and our children can eat, procure books and personal items and pay for accommodation”, Dr Arabi said.
Speaker, House of Representatives Femi Gbajabiamila, explained that the student loan scheme is safe from defaulting because a student must be indigenous and must also have two guarantors.
“Another feature of the students loan bill is that it requires two guarantors, where by one could be a civil servant with twelve years standing, a lawyer of ten years standing or a judicial officer.”
Mr Gbajabiamila, clarified that the loan is not going to be given direct to a student but disbursed directly to the school, adding that the loan would be processed within 30 days of application.
