President Bola Tinubu’s signing of the Student Loan Bill into law on Monday drew praise from the public, particularly students.
Here are things to know before applying for a student loan:
1. Students applying for loans must apply to the Chairman of the Nigerian Education Bank through their respective institutions.
2. They must have secured admission into any of the Nigerian universities, polytechnics, colleges of education, or vocational schools established by the Federal Government or the government of any state of the Federation.
3. The applicant must provide at least two guarantors.
4. Each of the guarantors must be a civil servant with not less than 12 years of service or a lawyer with at least 10 years of post-call experience in a judicial office of a justice of peace.
5. All applications from every institution must be submitted through the Student 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, rector, or head of the institution and the student affairs officer and addressed to the chairman of the board of the bank.
Each application must be accompanied by the following:
1. A copy of the student’s admission letter
2. A letter by the guarantors addressed to the chairman of the 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, the name of the employer, and evidence of being 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 the 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 a loan if:
1. He is proven to have defaulted in respect of any previous loan granted by any organisation.
2. He has not been found guilty of exam malpractice by any school authority.
3. He’s convicted of a felony or any office involving dishonesty or fraud.
4. He has been convicted of drug offences.
5. Any of his parents have defaulted in respect of a student’s loan or any loan granted to him or her.
For repayment of the loan:
1. Any beneficiary of the loan shall commence repayment two years after the 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.
As Chronicle NG reported, the bill will enable Nigerian students to access loans at interest-free rates.
In November 2022, the bill was passed by the National Assembly.
The bill seeks the establishment of the Nigerian Education Bank, which shall have powers to supervise, coordinate, administer, and monitor the management of student loans in Nigeria.
The board will also receive applications for scholar loans through higher institutions in Nigeria on behalf of the applicants and screen the applications to ensure that all requirements for the grant of scholar loans under the Act are satisfied.
“The bank shall also have the powers to approve and disburse the loan to qualified applicants; control, monitor, and coordinate the scholars’ loan account or fund and ensure compliance in respect of disbursement; monitor the academic records of grantees of the loan to obtain information on their year of graduation, national service, and employment to ensure that grantees of the loan commence repayment of the loan as soon as it is due, among other functions.
“The Bill provides that notwithstanding anything to the contrary contained in other enactments, all scholars seeking higher education in any public institution of higher learning in Nigeria shall have an equal right to access the loan under this Act without any discrimination arising from gender, religion, tribe, position, or disability of any kind.
“The loan referred to in this Act shall be granted to scholars only for the payment of tuition fees. The grant of the loan to any student under this Act shall be subject to the student(s) or applicant(s) satisfying the requirements and conditions set out under this Act.”
