This was announced on Monday by the spokesperson to the Federal Government Mister Dele Alake. He adds saying that the funds for the student loan will be domiciled in the Ministry of Education and will only be accessed by indigent students of tertiary institutions.
Dele Alake confirmed the cheering news to State House Correspondents on Monday evening. The bill will enable Nigerian students to access loans at interest-free rates.
The Permanent Secretary, Ministry of Education, Mr. David Adejo Andrew confirmed that the Students Loan Bill signed into law is an interest-free loan.
VERY SERIAL gathered that the Students Loan Bill recommended two years imprisonment or N500,000 or both for students who default in repayment or anyone found aiding defaulters.
The piece of legislation passed second reading at the House of Representatives on May 25, 2023.
What does The Student Loan Law Provides?
The bill, which was sponsored by Gbajabiamila, was titled ‘A Bill for an Act to provide for easy access to higher education for Nigerians through an interest-free loan from the Nigerian Education Bank established in this Act to provide education for Nigerians and other purposes connected thereto.’
VERY SERIAL learnt that the student loan bill will provide for interest-free loans to indigent Nigerian students, passed the third reading at the House, two weeks ago.
The law is to provide easy access to higher education for indigent Nigerians through interest-free loans from the Nigerian Education Loan Fund.
How The New Student Loan May Affect Tuition Fees in Tertiary Institutions?
With the establishment of an education bank, tertiary institutions owned by the Federal Government may now be at liberty to introduce tuition fees, experts in the higher education sector have argued.
Already, some universities owned by the Federal Government have started announcing an increase in tuition fees. For instance, The PUNCH in December 2022 exclusively reported how some Federal Government-owned universities announced a 200 per cent hike in fees. It is believed that the introduction of the education bank will help address the funding gap in tertiary institutions.
How to Apply for Nigeria Student Loan 2023?
According to the bill, students applying for loans under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfying of 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.
- Students who have defaulted on previous loans; 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.
- Following the satisfaction of the conditions listed above, applications for the loans 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.
What Are The Repayment Procedures and Duration For Nigeria Student Loan 2023
On the repayment, the act states that “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 per cent of the beneficiary’s salary at source by the employer.
“Where the beneficiary is self-employed, he shall remit 10 per cent of his total profit monthly to the student loan account to be prescribed by the bank.
“For the purpose of sub-section 3 above, a self-employed person shall, within 60 days of assuming that status, submit all information such as the name of business, address and location, registration documents, registered, name of bankers, names of partners, name of directors and shareholders to the Commission.
What Are The Consequences of Defaulting on the Student Loan 2023
“Anyone in default of the provisions of sub-section 4 above or found to be aiding the default of any of the provisions of this Act is guilty of an offence and, if convicted, shall be liable to imprisonment for two years or a fine of N500,000 or both.”
What Are The Features of the Nigeria Student Loan Act?
1. The new act will establish the Nigerian Education Bank, which will supervise, coordinate, administer and monitor the management of student loans in Nigeria.
2. Applicants will go through screening to determine whether they meet the requirements for the loan.
3. Students in all the higher institutions are eligible for the loan.
4. It provides funds for all education-related matters, including textbooks, and research.
5. It is only accessible to students studying in Nigeria.
6. There will be jail terms for student loan defaulters.
7. The repayment of the loan will begin two years after the National Youth Service Corps Scheme is completed.
What Are The Requirements for Nigerian indigents applying for the Student Loan 2023? How to get a loan to study in Nigeria?
1. The student applicants applying for loans under the Act shall apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions.
2. The student applicants must have secured admission into any of the Nigerian universities, polytechnics, colleges of education or any vocational school established by the Federal Government or the government of any Stale of the Federation.
3. The student applicants’ income or family income must be less than N500,000 (five hundred thousand naira) per annum.
4. The student applicants must provide at least two guarantors: each of the guarantors must be a civil servant of not less than level 12 in the service; or a lawyer with at least 10 (ten) years post-call experience; a Judicial officer; or a Justice Peace.
What Are The Benefits of the Students Loan Act to Nigerians and Indigent higher education students?
1. The Act provides an interest-free loan for indigent Nigerian students in which beneficiaries will only pay back the exact amount they collect.
2. The Act offers loans for indigent Nigerian students seeking higher education in government-owned universities, polytechnics and colleges of education in the country.
3. The Act enables all indigent Nigerian students to have equal rights to access the loan without any form of discrimination arising from gender, religion, tribe, position or disability of any kind.
4. The Act states that the loan shall be given to indigent Nigerian students only for the payment of tuition fees.
5, The Act stipulates that there shall be the establishment of a Nigerian Education Bank with the objective to provide education for all Nigerians in matters pertaining to loans:
Who is qualified to apply for student loan?
All students of tertiary education in Nigeria are eligible to access the student loan according to the new law.. The law is to provide easy access to higher education for indigent Nigerians through interest-free loans from the Nigerian Education Loan Fund.
Can a student get a loan in Nigeria?
Any student of higher education in Nigeria is qualified and can get access to the student loan provided from the Nigerian Education Loan Fund.