Student loan

President Bola Tinubu signed the Student Loan Bill into law on June 12, 2023, aiming to provide Nigerian students with interest-free loans. The bill, conceived by the Speaker of the 9th House of Representatives and now Chief of Staff, Femi Gbajabiamila, will establish the Nigerian Education Bank. This Act empowers the bank to “supervise, coordinate, administer, and monitor the management of student loan application in Nigeria.”

Student Loan Application in Nigeria Requirements

The requirements for obtaining a student loan under the Act. Interested students must apply to the Bank Chairman through their institutions after meeting the following criteria:

The student must have secured admission into a public Nigerian University, Polytechnic, college of education, or any TVET school.
The applicant’s income or family income must be less than N500,000 per annum.
The applicant must provide at least two civil servants as guarantors: either those with a minimum of 12 years in service at level 12 or above, a Lawyer with at least 10 years post-call experience, a Judicial officer, or a Justice of Peace.

Those who are not eligible to apply for the loan include:

Students who have defaulted on previous loans or have been found guilty of exam malpractice, felony, or drug offences.
Students whose parents have defaulted on previous loans.

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Applying for the Student Loan

Applying for the loan involves moving to the next stage after meeting the specified conditions. Applicants who fulfill these criteria should submit their applications through the Students Affairs Office of their institution.

The Vice-Chancellor, Rector, or head of the institution and the Student Affairs department will sign the list of all eligible applicants from the institution, along with a cover letter.

Regarding the loan amount, the Student Loan Bill signed by President Tinubu does not specify the exact amount each successful student will receive, as reported by BBC Pidgin. According to education expert Sadiq Aminu, it appears that factors such as the institution, course of study, and duration will determine the loan amounts.

Repayment of the Loan

The act outlines repayment of the loan, involving a direct deduction of 10% of the student’s salary from the source. Additionally, for self-employed individuals, the government will collect 10% of their total profit each month.

Transitioning into active voice, the Education Bank will collaborate with employers to ensure deducting the required amount from salaries and paying it into the student loan fund account.

Frequently Asked Questions (FAQ)

What is the purpose of the Nigerian Student Loan Bill signed by President Bola Tinubu?

The Nigerian Student Loan Bill aims to provide interest-free loans to Nigerian students pursuing higher education.

Who conceived the Student Loan Bill?

The bill was the brainchild of Femi Gbajabiamila, the Speaker of the 9th House of Representatives and currently the Chief of Staff.

What are the eligibility criteria for applying for the student loan?

Applicants must have secured admission into a public Nigerian University, Polytechnic, college of education, or any TVET school.
The applicant’s income or family income must be less than N500,000 per annum.
Applicants must provide at least two civil servants as guarantors, meeting specific criteria such as years of service or professional experience.

Who is not eligible to apply for the loan?

Students who have defaulted on previous loans or have been found guilty of exam malpractice, felony, or drug offences.
Students whose parents have defaulted on previous loans.

How can students apply for the loan?

Eligible applicants should submit their applications through the Student Affairs Office of their institution, following specific procedures outlined in the Act.

How is the loan repayment structured?

Repayment involves a direct deduction of 10% of the student’s salary from the source.
For self-employed individuals, the government will collect 10% of their total profit each month.
The Education Bank collaborates with employers to ensure timely deductions and payments into the student loan fund account.

Is the loan amount specified in the Student Loan Bill?

No, the bill does not mention the exact loan amount per student. It is expected to be determined based on factors such as the institution, course of study, and duration.

What role does the Nigerian Education Bank play in administering student loans?

The bank is empowered to supervise, coordinate, administer, and monitor the management of student loans in Nigeria, ensuring compliance with the Act’s provisions.

Conclusion

In conclusion, the signing of the Nigerian Student Loan Bill by President Bola Tinubu represents a significant step towards providing accessible and interest-free financial support to Nigerian students pursuing higher education.

With the clear eligibility criteria, application procedures, and repayment structures outlined in the Act, students have a pathway to fund their academic endeavors while contributing to their future success.

Additionally, the collaboration between the Nigerian Education Bank, institutions, employers, and students is crucial in ensuring the effective implementation and management of the student loan application program.

This initiative underscores the government’s commitment to fostering educational opportunities and empowering the next generation of leaders and professionals in Nigeria.

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