Academic Staff Union of Universities ASUU has described the proposed student loan scheme as a move to create more problems than the ones the union is trying to solve.
ASUU National President Professor Osodeke, made this known at the second day of the National summit on tertiary education reform taking place in Abuja.
Professor Osodeke, explained that with the current high rate of unemployment in the country, it is very difficult for students to repay such loans after graduation describing the whole system as unrealistic
The ASUU leader however, rejected the proposed 250,000 naira tuition fee per session, where a student would apply for a loan of 500,000 naira to pay and sustain himself.
According to him, this means that any student who could not access the loan is at risk of forfeiting a university education considering the level of poverty in the land as well as the current minimum wage.
On his part, the Director General Bureau for Public Sector Reform Dr Dasuki Arabi, observed that students loan would relieve pressure on national budgets by facilitating greater cost sharing through the raising of tuition and other University fees.
In a remark, the Speaker house of Representatives Mr Femi Gbajabiamila, explained that the Student loan scheme is safe from defaulting as benefiting students must be indigenous and must present a civil servant of twelve years standing and a lawyer to ten years standing as guarantors.
Mr Gbajabiamila, clarified that the loan was not going to be given directly to a student but to the school, adding that it can be processed within thirty days of application.