In fulfillment of one of his campaign promises, President Bola Tinubu has signed the Student Loan Bill into law.
This was disclosed to State House Correspondents on Monday evening by a spokesman of the Federal Government, Dele Alake.
He said the funds will be domiciled in the Ministry of Education and will only be accessed by indigent students of tertiary institutions.
The student loan bill sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, which provides 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.
Tinubu at one of his campaigns at the British Royal Institute in London, promised to give student loans as part of efforts to develop the education sector and also build the youth capacity.
“Youths are the greatest asset of tomorrow,” he said.
“The education system is to change. We would overhaul it and tinker with some areas with the philosophy that no one would be left behind. There will be student loans for all. We are going to reform the Almajiri system, We are equally going to build more schools, recruit more teachers and train them.
“Youths can even develop technological languages on their own and make a better 21st-century approach to governance in Nigeria.”
Specifically, the legislation passed second reading in the House of Representatives on May 25, 2023.
Meanwhile, the signing of the Student Loan Bill into law by the President on Monday has elicited commendations from the public, especially students.
Apart from enabling Nigerian students to access loans at interest-free rates, the law is also expected to see the establishment of an education bank.
The bill, which was sponsored by Hon Femi Gbajabiamila, was passed by the National Assembly in November 2022.
It was learned that 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 student loans through higher institutions in Nigeria on behalf of the applicants, and screen the applications to ensure that all requirements for the grant of students loan under the Act are satisfied.
The bill provides that: “The bank shall also have the powers to approve and disburse the loan to qualified applicants; control and monitor and coordinate the students’ loan account/fund and ensure compliance in respect of disbursement; monitor academic records of grantees of the loan to obtain information on their year of graduation, national service, employment to ensure that grantees of the loan commence repayment of the loan as at when due, among other functions.
“The Bill provides that notwithstanding anything to the contrary contained in other enactments, all students 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 students only for the payment of Tuition fees. The grant of the loan to any student under this Act shall be subject to the students/applicant(s) satisfying the requirements and conditions set out under this Act.”
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 any vocational school established by the Federal Government or the government of any state of the Federation.
3. Applicant must provide at least two guarantors.
4. Each of the guarantors must be a civil servant of not less than level 12 years in service, or a lawyer with at least 10 years 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 or rector or the head of the institution and the students’ affairs officer and addressed to the chairman of the board of the bank.
Each application must be accompanied by the following:
1. Copy of the 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, the 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 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 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 offenses
5. Any of his parents has defaulted in respect of student 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 completion of NYSC
2. Repayment shall be by direct deduction of 10% of the beneficiaries salary at source by that employer and credited to the student’s loan account.
