The Academic Staff Union Universities (ASUU) says the student loan act is designed to enrich owners of private universities in the country.
President Bola Tinubu assented to the student loan legislation on June 12.
The initiative is aimed at helping students in tertiary institutions to access interest-free loans from the Nigerian education loan fund.
Punch reports that Emmanuel Osodeke, ASUU national president, spoke of the initiative on Saturday at the Abubakar Tafawa Balewa University (ATBU) in Bauchi.
Osodeke, who Christopher Piwuna, his deputy, represented, said the federal government can fund Nigeria’s education system.
He said poor funding is a major challenge in Nigerian institutions.
The ASUU lead said efforts should be focused on closing the funding gap.
Osodeke said the union is against the student loan initiative because it would only benefit private universities.
He said grants should be made available to students and institutions if the government is serious about funding education.
The ASUU president urged parents to join the union to ensure that the education system becomes better.
“All these issues that have led to the introduction of the loan, the issues of charges in our universities are as a result of poor funding,” he said.
“This particular effort by the government is supposed to meet that funding gap in the universities.
“We believe that the Nigerian state can adequately fund education with discipline. If the Nigerian state is serious, it can fund education.
“We are against the student loan as a form of funding education, we think the loan will go back into the coffers of private individuals who are in government today who own private universities.
“We just want to show the government that we believe that the resources are available to take care of education.”