The Nigerian government on 12th of June, 2023 newly signed into law a bill that allows Nigerian students to enjoy a financial assistance from the federal government of the country. The bill which was titled “Student Loan Bill” was signed to enable Nigerian students gain access to a zero-interest loan for their tertiary education purposes.
This, the federal government believes, will assist and encourage
more Nigerian youths to pass through their tertiary education in the country
without experiencing financial constraints while studying.
Here are the 12 basic facts about the Nigerian Student Loan as approved by the Nigeria federal government:
- 1) The Fund for the student loan will be under the management of the Central Bank of Nigeria through the money deposit banks in the country.
- 2) It is zero-interest loan.
- 3) The fund for the Nigerian student loan will be generated from the revenue of the federal government.
- 4) Every Nigerian student is eligible to apply with evidence to proof nationality or indigene.
- 5) The student loan application, supervision and administration will be managed through Nigerian Education Loan Fund.
- 6) The loan will be allocated to students based on years of course of study and ability to refund the loan.
- 7) The total annual income of applicant (i.e student) or student’s family income applying for the loan must below N 500,000 ( five hundred thousand naira) per annum.
- 8) The loan is only available to students that have gained admission into any of the Nigerian tertiary institutions owned by the federal or state government of Nigeria (e.g university, polytechnic, college of education, vocational or technical school etc).
- 9) To apply for the loan a student must submit two civil servants as guarantors with each having 12 years in service experience or a judicial officer or a lawyer with minimum of a decade post-call experience.
- 10) Interested Nigerian students must apply through their higher institutions to the Nigerian Education Loan Fund for proper processing/screening.
- 11) Loan repayment: students will start repayment of the loan two years after the completion of their National Youth Service Corps (NYSC) programme. A deduction of 10% from beneficiary’s salary by the employer will be implemented on monthly on behalf of the government. If the beneficiary is self-employed, a submission of all necessary documents and information must be made available within 60 days of starting such operation.
- 12) According to the Student loan bill, a defaulter for it repayment will suffer a two-year imprisonment or N500,000 fine or both.
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