President Bola Tinubu
By Our Reporter
President Bola Tinubu has signed the Student Loan Bill into law.
A representative of the Federal Government, Dele Alake, disclosed this to State House Correspondents on Monday evening.
The bill will enable Nigerian students to access loans at interest-free rates.
Earlier report had it that the piece of legislation passed second reading at the House of Representatives on May 25, 2023.
Steps to access the student loan
The Student Loan Bill which is now Law officially known as AN ACT TO PROVIDE EASY ACCESS TO HIGHER EDUCATION FOR NIGERIANS THROUGH INTEREST FREE LOANS FROM NIGERIAN EDUCATION BANK ESTABLISHED was sponsored by Hon. Femi Gbajabiamila
Students applying for loan under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfaction
of the following conditions:
(i) Student must have secured admission into any public Nigerian
University,Polytechnic, COE or TVET school
Applicant income or family income must be less than N500,000 per annum;Applicant must provide at least two civil servants as guarantors: of not less than level 12 years in service; or a Lawyer with at least 10 years post-call experience; a Judicial officer; or a Justice of Peace.
Students who have defaulted in previous loans; found guilty of exam malpractices, felony, drug offenses will not be considered.
Students with parents who have defaulted in respect of previous loans will not be considered.
All Applications will be submitted through the Students Affairs Office of each Institution via a list of all
qualified applicants from the institution accompanied by a cover letter signed by the Vice Chancellor or Rector or the head of the institution and the student affairs.
Any beneficiary of the loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps programme.
(Repayment shall be by direct deduction of 10% of the
beneficiaries salary at source by the empioyer.
Where the beneficiary is self employed, he shall remit 10% of his
total profit monthly to the Students loan account to be prescribed by the bank
“The bank shall also have the powers to approve and disburse the loan to qualified applicants; control and monitor and coordinate the students’ loan account/fund and ensure compliance in respect of disbursement; monitor academic records of grantees of the loan to obtain information on their year of graduation, national service, employment to ensure that grantees of the loan commence repayment of the loan as at when due, among other functions.
“The Bill provides that notwithstanding anything to the contrary contained in other enactments, all students seeking higher education in any public institution of higher learning in Nigeria shall have an equal right to access the loan under this Act without any discrimination arising from gender, religion, tribe, position or disability of any kind.
“The loan referred to in this Act shall be granted to students only for the payment of Tuition fees. The grant of the loan to any student under this Act shall be subject to the students/applicant(s) satisfying the requirements and conditions set out under this Act.”
Here are things to know before applying for student loan:
1. Students applying for loan must apply to the Chairman of Nigerian Education Bank through their respective institutions.
2. They must have secured admission into any of the Nigerian Universities, Polytechnics, Colleges of Education or any vocational school established by the Federal Government or the government of any state of the Federation.
3. Applicant must provide at least two guarantors.
4. Each of the guarantors must be a civil servant of not less than level 12 years in service, or a lawyer with at least 10 years post-call experience; of a judicial office of a justice of peace.
5. All applications from every institution must be submitted through the Student Affairs Office of each institution via a list of all qualified applicants from the institution accompanied by a cover letter signed by the vice-chancellor or rector or the head of the institution and the students affairs officer and addressed to the chairman of the board of the bank.
Each application must be accompanied by the following:
1. Copy of student’s admission letter
2. Letter by the guarantors addressed to the chairman, governing board of the bank recommending the student for the loan and stating that he accepts the liability in the event of default.
3. Each guarantor must submit two passport photographs, name of the employer and evidence of being so employed by the named organisation.
4. Each institutions must ensure that all applications from its school reach the bank not more than 30 days after close of admission for the academic year.
5. Where the guarantor is self-employed, he must provide particulars of his business as registered with the CAC or any other appropriate authority.
A student can be disqualified from accessing loan if:
1. He is proven to have defaulted in respect of any previous loan granted by any organisation.
2. He has been found guilty of exam malpractice by any school authority.
3. He’s convicted of felony or any office involving dishonesty or fraud
4. He has been convicted of drug offenses
5. Any of his parents has defaulted in respect of student’s loan or any loan granted to him or her.
For repayment of the loan:
1. Any beneficiary of the loan shall commence repayment two years after completion of NYSC
2. Repayment shall be by direct deduction of 10% of the beneficiaries salary at source by that employer and credited to the students loan account.
