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Loan for college: The Federal Government has stated that if a beneficiary of a student loan passes away before being able to pay back their debts, their family members will not be held liable for the debt. This means that beneficiaries who pass away without being able to pay back their loans will not be burdened financially.
The Student Loan Act, which was signed by President Bola Tinubu on Democracy Day, June 12, 2023, stipulates that self-employed beneficiaries will receive 10% of their profits as repayment, while employed beneficiaries will have their repayment deducted from the source.
Some analysts have expressed concerns regarding the repayment, despite the fact that the government has established an inter-ministerial committee to ensure that the Act is properly refined and that disbursement begins on time for the 2023–2024 academic session.
For instance, the Academic Staff Union of Universities pointed out that a number of schemes have failed in the past because the people who took out the loans failed to pay back their debts, preventing other people from taking advantage of the scheme.
While responding to questions from our correspondent regarding repayment, the Permanent Secretary of the Federal Ministry of Education, Andrew Adejo, stated, "The loan is to enable them to finish their education program and start paying back." This was in reference to beneficiaries who take out the loan but die before repaying it.
The loan recovery process does not begin until you get a job. Force majeure is the cause of the death. Death is never planned for. You cannot put it off until their children or parents pay. Although the president has provided policy direction, I do not know how the committee will circumvent the committee's terms of reference.
He stated, regarding the employment provision, "The President is a job creator." He has provided policy direction based on his private sector experience. One of his priorities will be job creation. There will be more jobs. All industries will see an increase in job creation.