Following the signing into law the Student Loan Bill by President Bola Tinubu, Nigerian students can now finance their education through loan with interest-free rate.
The bill was signed on Monday, Mr. Dele Alake, an aide to the President disclosed this to State House Correspondents on Monday evening.
During his campaign, President Tinubu pledged the develop the education sector and provide interest-free financing to students.
”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,” Tinubu said.
According to the Students Loan (Access to Higher Education) Act, 2023 which repeals and replaces the Nigerian Education Bank Act of 1993, students applying for loan under must apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions.
The Act explained further procedures as:
”Student must have secured admission into any public Nigerian University, Polytechnic, College of Education 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.”