The reworked student loan Bill is ready for President Bola Ahmed Tinubu’s approval.
The Senate yesterday passed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024.
It was after considering the report of the Senate Committee on Tertiary Institutions and TETFUND.
The House of Representatives also passed the harmonised copy of the bill into law.
Both chambers passed the bill within three legislative days after President Tinubu sent an Executive Bill last Thursday.
A key highlight of the bill is that one per cent of collectable taxes by the Federal Inland Revenue Service (FIRS) will be used to fund the scheme.
The FIRS set a revenue target of N19.4 trillion for this year after surpassing its 2023 target by 107 per cent. It generated N12.37 trillion in 2023.
Should the FIRS hit its 2024 target, it means that N194 billion will go to the student loan fund.
The bill provides for the establishment of the Nigeria Education Loan Fund and removes the family income threshold as a condition for accessing the loan.
Under the new bill, false declaration attracts three years in jail, while there is loan repayment forgiveness in case of a beneficiary’s death.
