Expert Proposes Flexible Repayments Options on Students Loan

Omolabake Fasogbon

Ahead of the takeoff of the students’ loan scheme recently signed into law (Access to Higher Education Act) by President Bola Tinubu, Managing Director of UpdateAfrika Communications, Dr. Joseph Effiong, has sought a simplest repayment schedule in such a way that enables a win-win situation for both the borrower and lender.

Specifically, Effiong, a youth advocate suggested an income-based repayment plans that is not tied to a fixed amount, to be spread over an extended period. This is as the federal government’s amended act on the loan pegged repayment to two years post National Youth Service(NYSC) and 10 percent direct deduction from beneficiaries’ salaries. 

Effiong was speaking amid concerns for the economic effects of government’s decision on repayment modalities, which he too submitted may be counterproductive on the economy in the long run. 

He feared that with the height of unemployment data, reportedly increasing on monthly basis, government’s modalities may be unrealistic, hence, the need for prompt adjustment. 

Moreover, he stressed the urgency to tackle root causes of unemployment among youth to avoid running into bankruptcy with the scheme, advising present administration to learn from USA that is presently battling debt crisis as a result. 

“Both government and educational institutions alike need to focus on enhancing job-relevant skills, internships, and career guidance to better prepare graduates for the job market. 

Additionally, the authority needs to explore partnership with private firms to help facilitate finance for graduates seeking entrepreneurship routes. More so, there is need to drive policies that will enable mass jobs in both private and public sectors”, he admonished. 

He maintained that government will need to closely and routinely monitor the scheme’s performance with its manager for accountability and adjustment if need be.