The Federal Government has said beneficiaries of the student loan who die before they are able to repay their debts will be free from the debt burden, and that their family members will not be held responsible for the debt.
The Student loan Act signed by the President, Bola Tinubu during the June 12, 2023 Democracy day celebration provides that beneficiaries who are employed will have their repayment deducted from source while those who are self-employed will turn in 10 per cent of profit as repayment.
Although an inter-ministerial committee has been set up by the government to ensure that the Act is properly refined and that disbursement commences on time for the 2023/2024 academic session, some analysts have expressed worries over the repayment.
The Permanent Secretary, Federal Ministry of Education, Andrew Adejo, while fielding questions from journalists on the matter of repayment, especially for beneficiaries who take the loan but die before repayment said, “The loan is to enable them to finish their education programme and start paying back.
“The loan recovery doesn’t start until you get employed. The issue of death is force majeure. No one plans for death. You cannot wait for their children or their parents to pay. The committee has been given terms of reference, so I don’t know how the committee will play around that but the president has given policy direction.”
