President Bola Ahmed Tinubu has just enacted a groundbreaking law introducing interest-free student loans, a significant step towards enhancing access to education in Nigeria.
Sponsored by Hon. Femi Gbajamiamila, the law aims to provide financial assistance to students pursuing higher education.
Here are the steps to access the interest-free student loan
The Student Loan Bill which is now officially known as “AN ACT TO PROVIDE EASY ACCESS TO HIGHER EDUCATION FOR NIGERIANS THROUGH INTEREST FREE LOANS FROM NIGERIAN EDUCATION BANK ESTABLISHED” was sponsored by Hon. Femi Gbajabiamila.
Students applying for loan under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions:
- Student must have secured admission into any public Nigerian University, Polytechnic, COE or 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 in previous loans; found guilty of exam malpractices, felony, drug offences will not be considered.
- Students with parents who have defaulted in respect of previous loans will not be considered.
- All Applications 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.
- 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% of the
beneficiaries salary at source by the employer.
- Where the beneficiary is self employed, he shall remit 10% of his total profit monthly to the Students’ loan account to be prescribed by the Bank.
By: Precious Onajobi