By law, Student Loan with Nigerian Education Bank is here

President Bola Tinubu has signs Student Loan Bill into law

President Bola Tinubu has signed the Student Loan Bill into law. The Act will enable indigent students to access federal government loans at interest-free rates to fund their educational pursuit.

The Act makes room for the establishment of a Nigerian Education Bank with the mandate to provide education for all Nigerians in matters pertaining to loans.

To qualify for the loan a student must show proof of being indigent.

ALSO READ:  Is loan financing the best for startups?

The interest-free loan would be disbursed based on the student’s number of years of study and ability to pay back.

Loan defaulters risk imprisonment or N500, 000 or both for students or anyone found aiding defaulters.

Loan will allow universities raise school fees

The law is targeting to open education opportunity to millions of Nigerians whose precarious financial condition makes it impossible for them to pursue any form of higher education.

ADVERTISEMENT

It also open a window for universities to begin charging school fees in order to be able to provide education services based on global standards.

Requirements for the Students Loan

1. The student applicants applying for loans under the Act shall apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions.
2. The student applicants 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. The student applicants’ income or family income must be less than N500,000 (five hundred thousand naira) per annum.
4. The student applicants must provide at least two guarantors: each of the guarantors must be a civil servant of not less than level 12 in the service; or a lawyer with at least 10 (ten) years post-call experience; a Judicial officer; or a Justice Peace.

Part of the application process will also entail providing the following:

• A completed application form.
• Your admission letter.
• Tuition advice.
• Also, letter of domiciliation of your salary account or your parent’s/sponsor’s salary account.
• Copy of Student ID or valid means of identification belonging to you or your parent/sponsor.
• BVN