Nigerians welcome student loans but questions linger
Nigerians in capital, Abuja, tell the correspondent they welcome President Bola Tinubu’s new student loan bill, but are questioning how it will work in practice.
The new policy, which the president signed into law on Monday, offers financial support for poorer students in higher education by enabling them to easily get interest-free loans from the Nigerian Education Loan Fund to cover tuition fees.
However, students could face two years imprisonment or a 500,000 naira ($1,000; £790) fine if they default on repayments once eligible to do so.
“I think it’s a very good idea and it’s going to help students,” one young woman tells the BBC, adding that people should not just “collect loan and relax”, referencing the strict rules regarding repayment or jail time.
One student says the policy is good as fees have increased exponentially.
However, his “biggest worry is how the policy will be driven to a logical conclusion”, because Nigeria struggles to execute good policies, he says.
Beneficiaries of the loan are expected to start repayment as soon as they gain employment, following the completion of their studies and mandatory national service.