ASUU Rejects Federal Government’s Student Loan Initiative, Cites Unemployment, Financial Debt Burden
The Academic Staff Union of Universities (ASUU) rejected the Federal Government’s student loan initiative on Thursday, citing concerns that beneficiaries may struggle to repay the loans.
Speaking on Channels Television’s Sunrise Daily program in Abuja, ASUU President Emmanuel Osodeke stated that the union’s research on student loan systems in other countries reveals that graduates often become burdened with debt and feel demoralized.
Osodeke emphasized that the sheer amount of debt incurred by students is unsustainable. “Imagine a student graduating with a loan of five million naira,” he said. “Even as a professor, I couldn’t repay such a loan in 20 years.” He also noted that many graduates face uncertainty about their job prospects, making it difficult for them to repay their loans.
The ASUU president suggested that increasing the budgetary allocation for education would be a more effective solution, eliminating the need for student loans altogether. He also pointed out that this is not the first time the Federal Government has attempted to implement a student loan initiative, with previous attempts failing to yield desired results.
Osodeke drew parallels with the United States, where student loans are prevalent, and many students struggle to repay their debts, leading to severe consequences, including mental health issues and even suicides.
He noted that President Joe Biden had to intervene to address the loan crisis, questioning how a similar initiative could succeed in Nigeria, given the country’s high unemployment rate.
