AGS NEWS – On Wednesday, the National Assembly approved the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024.

This decision follows deliberations by both the Senate and the House of Representatives on the report presented by the Committee on Tertiary Institutions and TETFund.

President Bola Tinubu had requested the repeal of the existing law and proposed a new bill, which was submitted to the Senate last Thursday.

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This move came after the announcement of a temporary suspension of the student loan scheme, initially aimed at providing interest-free loans to tertiary institution students to complete their studies.

The Student Loan Bill was initially signed into law by Tinubu in June 2023.

The Senate subsequently passed a Bill for an Act to Repeal the Students Loan and Access to Higher Education Act 2023, replacing it with the Student Loans Access to Higher Education Bill 2024.

Although the student loan scheme was set to commence last Thursday, the Presidency opted to make amendments to the bill before implementation.

These amendments were swiftly considered by the Senate during its plenary session.

Senator Muntari Dandutse, Chairman of the Committee, presented the report to the Senate, as mandated by Senate President Godswill Akpabio, who had referred the bill to the committee for further legislative work.

The proposed amendments include the removal of the family income threshold and guarantor requirements for loan applications.

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Student applicants cannot be disqualified based on their parents’ loan history. The bill also introduces provisions for loan repayment, including a grace period after completion of the National Youth Service Corps program.

The bill outlines measures for loan forgiveness in cases of death or financial hardship. Any false statements made to the Fund regarding loan repayment are subject to legal penalties, including imprisonment.