Student Loan: How Can I Apply, What Can I Borrow and When Do I Pay It Back?
FCT, Abuja – In an attempt to give Nigerian students access to interest-free loans, President Bola Tinubu signed the Student Loan Bill into law on June 12, 2023.
The bill was the brainchild of the Speaker of the 9th House of Representatives, now the Chief of Staff, Femi Gbajabiamila.
After signing the bill into law, the Act will establish the Nigerian Education Bank and empower it to “supervise, coordinate, administer and monitor the management of student loan in Nigeria.”
Requirement for student loan
According to The Punch, the Act stipulates that interested students are to apply to the Chairman of the Bank through their institutions after satisfying the following conditions:
Student must have secured admission into any public Nigerian University, Polytechnic, college of education or any 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.
Those not qualified to apply for loan
Students who have defaulted on previous loans; and found guilty of exam malpractice, felony, or drug offences will not be considered.
Students with parents who have defaulted in respect of previous loans will not be considered.
How to apply
Applicants who satisfied the above conditions would move to the next level by submitting their applications through the Students Affairs Office of their institution.
The Vice-Chancellor or Rector or the head of the institution and the Student Affairs will sign the list of all qualified applicants from the institution accompanied by a cover letter.
How much can students borrow as loan?
The Student Loan Bill signed by President Tinubu did not state the amount each successful student would be given, BBC Pidgin reported.
An education expert, Sadiq Aminu, said it appears the loans will be based on the institution, course of study, and duration. When students start to repay the loan
According to the act, the repayment will be a direct deduction of 10% of the student’s salary from the source and for self-employed, the government will collect 10% of the total profit each month.
The Education Bank will collaborate with employers to make sure they deduct the required amount from their salary and pay to the student loan fund account.
The repayment will be a direct deduction of 10% of your salary from the source and for self-employed, the government will deduct 10% of your total profit each month.