How to Apply for Student Loan In Nigeria

in june 12 2023 the Nigeria president signed the student loan bill into law, and good number of Nigerians students are searching on how to apply for student loan in Nigeria.

This articles brings you all you need to know about the student loan, how to apply for student loan in Nigeria, who is qualified for student loan and the requirements for student loan in Nigeria.

Student Loan bill in Nigeria

President Bola Tinubu has signed into law the Student Loan Bill in fulfilment of a promise he made during his campaign.

This was announced on Monday by the spokesperson to the Federal Government Mister Dele Alake, saying that 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.

Some Facts about student loan bill in Nigeria

• The new act will establish the Nigerian Education Bank, which will supervise, coordinate, administer and monitor the management of student loans in Nigeria.
• Applicants will go through screening to determine whether they meet the requirements for the loan.
• Students in all the higher institutions are eligible for the loan.
• It provides funds for all education-related matters, including textbooks, and research.
• It is only accessible to students studying in Nigeria.
• There will be jail terms for student loan defaulters.

How to Apply for Federal Government Student Loan

The Student Loan Bill which is now Law 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:

Requirements for student loan in Nigeria

(i) 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 offenses 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.

Final Thought

The student loan bill is still in it early stage, we will keep working on updating this content while we learn about the loan and keep this post up to date. Kindly keep visiting this page so you can come back and learn more about the student loan