The Nigerian government has proposed a new student loan scheme that would provide funding for students to attend accredited tertiary institutions in the country. The scheme, which is still in its early stages, is expected to be funded by a combination of government and private sector resources.
Here are some things to note about the new student loan scheme:
- Eligibility: The scheme is open to all Nigerian citizens who have been accepted into an accredited tertiary institution. Applicants must have a minimum of five credits in their West African Senior School Certificate Examination (WASSCE) or equivalent.
- Loan amount: The maximum loan amount that a student can borrow is N1 million. The loan can be used to cover tuition fees, living expenses, and other related costs.
- Repayment: Students must begin repaying their loans two years after completing their studies. The repayment period is a maximum of 10 years.
- Interest rate: The interest rate on the loans has not yet been announced. However, it is expected to be lower than the commercial lending rate.
The new student loan scheme is a welcome development for many Nigerian students who struggle to afford the high cost of tertiary education. However, there are some concerns about the scheme, including the repayment terms and the potential for high default rates. It is important to note that the scheme is still in its early stages and that the details may change before it is finalized.
Here are some of the pros and cons of the new student loan scheme:
Pros:
- The scheme will provide much-needed funding for Nigerian students who want to pursue higher education.
- The scheme will help to reduce the financial burden on students and their families.
- The scheme will help to improve access to higher education for Nigerians from all backgrounds.
Cons:
- The repayment terms may be too burdensome for some students.
- There is a risk of high default rates on the loans.
- The scheme could lead to an increase in the number of students enrolling in tertiary institutions, which could put a strain on resources.
Overall, the new student loan scheme is a positive development for Nigerian students as any default is liable to face 2 years imprisonment, or a fine of 500,000, or both penalty. However, it is important to weigh the pros and cons carefully before deciding whether or not to apply for a loan.