What You Should Know about the Student Loan Bill Signed into Law by President Tinubu and How to Access Student Loans

Important Information about the Student Loan Bill Enacted into Law by President Tinubu and How to Access Student Loans

• The recently signed Student Loan Bill has officially become a law known as the “Act to Provide Easy Access to Higher Education for Nigerians through Interest-Free Loans from the Nigerian Education Bank Established.” The bill was sponsored by Hon. Femi Gbajabiamila.
• To apply for a loan under this Act, students must fulfill the following conditions and apply to the Chairman of the Bank through their respective institutions: (i) Secure admission into a public Nigerian University, Polytechnic, College of Education (COE), or Technical and Vocational Education and Training (TVET) school.
• The applicant’s income or family income should not exceed N500,000 per annum. Additionally, the applicant must provide at least two civil servants as guarantors, who should hold a minimum rank of level 12 and have completed a minimum of 10 years in service. Alternatively, a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of Peace can serve as guarantors.
• Students who have defaulted on previous loans or have been found guilty of exam malpractice, felony, or drug offenses will not be considered for the loan.
• Students whose parents have defaulted on previous loans will also not be considered for the loan.
• All applications must be submitted through the Students Affairs Office of each institution. The application should include a list of all qualified applicants from the institution and be accompanied by a cover letter signed by the Vice Chancellor, Rector, or the head of the institution, as well as the student affairs representative.
• Repayment for beneficiaries of this loan will commence two years after completion of the National Youth Service Corps (NYSC) program. The repayment will be deducted directly from the beneficiary’s salary at a rate of 10% by the employer.
• Self-employed beneficiaries must remit 10% of their total monthly profit to the designated Students Loan Account prescribed by the Bank.

In my opinion, this initiative holds great potential if effectively implemented and sustained. It is crucial for the beneficiaries of this program to demonstrate responsibility and accountability. They must possess strong character traits.

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