Kworld Trend / How to apply for student loan in nigeria ,tinubu signs student loan, On Monday, June 12, 2023, the President, Bola Tinubu, signed into law the Student Loan Bill. The bill, which will enable Nigerian students to obtain interest-free loans, was introduced by the outgoing Speaker of the House of Representatives, Femi Gbagabyamila.The PUNCH reported that the legislation passed second reading in the House of Representatives on May 23, 2023.
Student loan in Nigeria
President Bola Tinubu on Monday signed into law a bill establishing the Student Loan Fund (SLF) to provide interest-free loans to Nigerians seeking higher education.
On Monday, Dele Alec, a Tinubu aide, told state house reporters that Mr. Tinubu has approved the bill.
Sponsored by former Speaker of the House of Representatives, Femi Gbagabyamila, the bill was introduced in 2016 as part of measures to address funding gaps in the country’s higher education sub-sector.
Mr Gbajabiamila has now been appointed as Mr Tinubu’s chief of staff, and was appointed to take over the role on Wednesday, a day after he became President of the Green Chamber of Nigeria.
How To Apply For Student Loan In Nigeria Tinubu Sign Student Loan
Experts in the higher education sector have argued that with the establishment of an education bank, higher education institutions owned by the federal government may now be free to charge tuition fees.
Already, some federally owned universities have started announcing tuition increases. For example, PUNCH in December 2022 exclusively reported how some federally owned universities announced 200 percent fee increases. It is believed that the introduction of the Education Bank will help bridge the funding gap in higher education institutions.
According to the bill, which was seen by our reporter on Monday, students applying for loans under this law must apply to the chairman of the bank’s board of directors through their respective institutions when the following conditions are met:
- I. The student must have gained admission into any Nigerian public university, polytechnic, college of education or any technical and vocational education and training school; The applicant’s income or household income must be less than N500,000 per annum; The applicant must provide at least two civil servants as guarantors: at least 12 years of service; or an attorney with at least 10 years post-call experience; Judicial officer or justice of the peace.
- secondly. students who defaulted on previous loans; Convictions of exam malpractice, felony or drug offenses will not be considered.
- Third. Students with parents who defaulted on previous loans will not be considered.
After the above conditions are met, applications for loans will be submitted through the Student Affairs Office of each institution via a list of all eligible applicants from the institution accompanied by a cover letter signed by the Vice-Chancellor, Rector, or President of the Institution and Student Affairs.
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On repayment, the Act provides that “Any beneficiary of a loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps program. Repayment shall be by direct deduction at the rate of 10 percent of the beneficiary’s salary at issuer by employer.
“If the beneficiary is self-employed, he has to transfer 10 percent of his total earnings per month to the student loan account determined by the bank.
“For the purposes of subsection 3 above, a self-employed person must, within 60 days of assuming such status, provide all information such as business name, address, location, registration documents, registrants, name of bankers, names of partners, and name of directors and shareholders of the body.
“Any person who contravenes the provisions of subsection 4 above or is found to assist in the default of any of the provisions of this Act is guilty of an offense and, if convicted, liable to imprisonment for two years or to a fine of N500,000 or both.”
How do I apply for a DIY loan?
When the time comes to apply for a student loan in accordance with the law that established it, the person applies to the Education Bank of Nigeria through the institution in which he has just gained admission.
The Di letter goes through the student affairs department of each higher institution and collects the list of candidates from the dia di school to send to di bank togeda together with a cover letter from the Vice-Chancellor.
The letters will be forwarded to the Head of the Education Bank and within 30 days, the disbursement of funds will begin, but the law states that every institution must also submit all their lists within 30 days after admission closes.
The applicant must also meet the following criteria.
Criteria for qualifying an applicant for a loan
It is for all students who wish to obtain higher education from public institutions of higher education within the country.
Students from private higher education institutions want to not pursue the ranking.
However, The loan is for every student, it doesn’t matter if you are male, female or any other gender, Muslim or Christian.
Your crew doesn’t get anything to do with a de-loan
If you have any disability that does not affect you in obtaining a debt loan at all.
The loan under this Act is only for students who are willing to pay their school fees.
If you pay fine pocket money or money for a project or dat kain tin then dis loan is not for you.
Go to Demo for a background check to ensure that the applicant has defaulted on any loan previously or taken from any oda.
How much does a decent student go to collect as a loan?
As of now, it is not clear how much each successful student will be able to take out as a loan when the time comes.
Moreover, It is something the law does not explain in the article President Tinubu signed into law.
Sadiq Aminu is an expert in education and said from his point of view the amount awarded to students will vary based on the institution, course of study and duration.
“Why should I say that parts of the students will benefit from student loans who belong to vocational training centers and not universities, so the unsuitable funds are different.”
“Even for universities, students who study medicine and surgery or engineering assume they are raising money through arts or social science students and need fewer textbooks and practical applications.”
