President Bola Tinubu has signed the Student Loan Bill into law.
An aide to the president, Dele Alake, disclosed this to State House Correspondents on Monday evening.
The bill will enable Nigerian students to access loans at interest-free rates.
The PUNCH reported that the piece of legislation passed second reading at the House of Representatives on May 25, 2023.
Facts about Students loan bill signed by the president
- The new act will establish the Nigerian Education Bank, which will supervise, coordinate, administer and monitor the management of student loans in Nigeria.
- Applicants will go through screening to determine whether they meet the requirements for the loan.
- Students in all the higher institutions are eligible for the loan.
- It provides funds for all education-related matters, including textbooks, and research.
- It is only accessible to students studying in Nigeria.
- There will be jail terms for student loan defaulters.
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.
