The signing of the Students’ Loan Bill into law by President Bola Tinubu on Monday, June 12, 2023, which will enable Nigerian students to have access to interest-free loans has elicited commendations from the public, especially students.
The Students’ Loan Bill was introduced by the outgoing speaker of the House of Representatives, Femi Gbajabiamila.
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.
Students applying for loans under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfying the following conditions:
1. 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.
2. Students who have defaulted on previous loans; found guilty of exam malpractice, felony, or drug offences will not be considered.
3. Students with parents who have defaulted in respect of previous loans will not be considered.
Each application must be accompanied by the following:
1. Copy of student’s admission letter
2. Letter by the guarantors addressed to the chairman, governing board of the bank recommending the student for the loan and stating that he accepts the liability in the event of default.
3. Each guarantor must submit two passport photographs, name of the employer and evidence of being so employed by the named organisation.
4. Each institution must ensure that all applications from its school reach the bank not more than 30 days after close of admission for the academic year.
5. Where the guarantor is self-employed, he must provide particulars of his business as registered with the CAC or any other appropriate authority.
A student can be disqualified from accessing loan if:
1. He is proven to have defaulted in respect of any previous loan granted by any organisation.
2. He has been found guilty of exam malpractice by any school authority.
3. He’s convicted of felony or any office involving dishonesty or fraud
4. He has been convicted of drug offenses
5. Any of his parents has defaulted in respect of student’s loan or any loan granted to him or her.
For repayment of the loan:
1. Any beneficiary of the Students’ loan shall commence repayment two years after completion of NYSC
2. Repayment shall be by direct deduction of 10% of the beneficiary’s salary at source by that employer and credited to the student’s loan account.
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.
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.