President Bola Tinubu’s signing of the Student Loan Bill into law on Monday, June 12, 2023, has received widespread praise from the public, particularly from students.
The new legislation will facilitate Nigerian students’ access to interest-free loans and pave the way for the establishment of an education bank.
The bill, initially proposed by Hon Femi Gbajabiamila and subsequently passed by the National Assembly in November 2022, aims to provide financial support exclusively for students’ tuition fees.
Before applying for a student loan, there are several important points to consider:
1. Students seeking loans must submit their applications to the Chairman of the Nigerian Education Bank through their respective educational institutions.
2. Eligibility for the loan requires students to have secured admission to a Nigerian university, polytechnic, college of education, or vocational school established by the Federal Government or any state government.
3. Each applicant must provide at least two guarantors.
Benefits of applying for a student loan
4. The guarantors must be civil servants of at least level 12 with a minimum of 10 years of service or lawyers with a decade of post-call experience, including judicial officers or justices of peace.
5. All applications from each institution should be submitted through the Student Affairs Office along with a list of qualified applicants and a cover letter signed by the vice-chancellor, rector, or head of the institution, as well as the students affairs officer, addressed to the Chairman of the bank’s board.
Nigerian Students Loan Requirements.
When submitting application for the Student loan, the following documents must accompany it:
1. Copy of the student’s admission letter.
2. Letter from the guarantors addressed to the chairman of the bank’s governing board, recommending the student for the loan and stating their acceptance of liability in case of default.
3. Each guarantor should provide two passport photographs, the name of their employer, and evidence of their employment with the mentioned organization.
4. Institutions must ensure that all applications from their school reach the bank within 30 days after the close of admissions for the academic year.
5. In the case of self-employed guarantors, they must provide details of their registered business with the Corporate Affairs Commission (CAC) or any other appropriate authority.
“What can disqualify you from the student loan?”
Certain conditions may disqualify a student from accessing the loan, including:
1. Proven default on previous loans granted by any organization.
2. Conviction for exam malpractice by a school authority.
3. Conviction for felony, dishonesty, fraud, or drug offenses.
4. Default on a student loan or any loan by either of the student’s parents.
“How to repay the student loan?
The following are the processes that beneficiaries will follow for loan repayment:”
1. Beneficiaries of the loan must commence repayment two years after completing the National Youth Service Corps (NYSC).
2. Repayment will be facilitated through a direct deduction of 10% from the beneficiary’s salary at the source by their employer, which will be credited to the student’s loan account.
