Modify Student Loan Repayment Plan - Dr Joseph Effiong

Ahead of the takeoff of the student loan scheme recently signed into law by the President of Nigeria, Bola Ahmed Tinubu, the Managing Director of UpdateAfrika Communications, Dr Joseph Effiong, has called for an improved student loan repayment schedule in such a way that enables a win-win situation for both the borrower and lender.

Dr Joseph Effiong revealed this in a recent statement made available.

Dr Joseph Effiong proposed an income-based student loan repayment plan 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 student loan pegged student loan repayment to two years post National Youth Service (NYSC) and a 10% direct deduction from the students loans beneficiaries’ salaries.

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

Dr Joseph Effiong feared that with the height of unemployment information, reportedly increasing every month, the government’s modalities may be unrealistic, hence, the need for prompt adjustment.

Moreover, Dr Joseph Effiong emphasized the urgency to address the root causes of unemployment among youths to avoid running into bankruptcy with the student loan, advising the present administration to learn from the United States of America, which is presently battling a 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 partnerships with private firms to help facilitate finance for graduates seeking entrepreneurship routes. More so, there is a need to drive policies that will enable mass jobs in both private and public sectors”, Dr Joseph Effiong said.

Dr Joseph Effiong maintained that the government will need to closely and routinely monitor the student loan's performance with its manager for accountability and adjustment if need be.

Recall that NELFUND on 24th May 2024 launched the student loan portal for registration of the batch of student loan beneficiaries.

The government said that 1,200,000 federal higher students will benefit from the first phase of the student loan.

NELFUND on Tuesday shifted the June 25, 2024 start date of the student loan second phase of the student loan scheme for two weeks which will include students from state-owned universities.

Source: https://dailypost.ng/2024/06/25/student-loan-modify-repayment-plan-effiong-to-nigerian-govt/