On June 12, President Bola Ahmed Tinubu signed the student loan bill into law, coinciding with the commemoration of Democracy Day in Nigeria.
The bill, sponsored by Femi Gbajabiamila, the former Speaker of the House of Representatives, primary objective is to provide financial assistance to students enrolled in tertiary institutions across the country.
The enactment of the student loan bill aligns with one of the key promises outlined in President Tinubu’s manifesto during his presidential campaign.
Alongside the implementation of the student loan scheme, the President also emphasized the need for comprehensive reforms in the educational system..
To access the student loan provided by the Nigerian Education Bank, students must follow these steps:
Students who wish to apply for the loan must first obtain admission into a public Nigerian university, polytechnic, College of Education (COE), or Technical and Vocational Education and Training (TVET) school.
The applicant’s income or family income should not exceed N500,000 per annum.
The applicant must provide a minimum of two civil servants as guarantors. These guarantors should either be at least at level 12 in service or meet the following criteria: a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of Peace.
Students who have previously defaulted on loans or have been found guilty of exam malpractices, felony, or drug offenses will not be considered eligible for the loan.
Students whose parents have defaulted on previous loans will also not be considered eligible.
All loan applications should be submitted through the Students Affairs Office of each institution. The applications must include a list of all qualified applicants from the institution, accompanied by a cover letter signed by the Vice Chancellor, Rector, or the head of the institution and the student affairs office.
Repayment of the loan will commence two years after the completion of the National Youth Service Corps (NYSC) program.
The repayment amount will be deducted directly from the beneficiary’s salary at a rate of 10% by the employer.
Self-employed beneficiaries will remit 10% of their total monthly profit to the designated Students Loan account prescribed by the Bank.
This initiative aims to address the financial challenges faced by Nigerian students and foster the development of a robust and inclusive educational framework.
RN