President Tinubu Signs Student Loan Bill Into Law, See Steps to Apply
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 employer.
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.
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