How To Apply For Student Loan In Nigeria: The President of Nigeria, Bola Ahmed Tinubu signed into law the Student Loan (Access to Higher Education) bill on Monday, 12th of June 2023.
The student loan law is part of the promises he made to Nigerians during his campaign as contained in his manifesto.
The student loan law is expected to enhance access to the educational system in Nigeria and also grant Nigerian undergraduate students access to interest-free loans to fund their educational pursuits. The student loan is strictly for payment of the tuition fee of the student.
Recall that the bill was initiated and introduced by the ongoing speaker of the House of Representatives and the current Chief of Staff, Femi Gbajabiamila.
According to the Act, all students seeking higher education in any public institution of higher learning in Nigeria shall have equal right to access the loans with any form of discrimination that may arise from gender, tribe, religion, position, or disability of any kind
However, The grant of this loan to applicants(students) must be subject to the student meeting the requirements and conditions set by the Student Loan Act.
In this article, we will be looking at the requirements needed to secure this loan and also look at the eligibility of any student seeking to access this loan as a statement in the Student Loan Act, required documents, the application process, disbursement, repayment and penalties for repayment defaulters of the loan.
How To Apply For Student Loan In Nigeria
For any student seeking to get this loan, you are required to follow these steps so as to secure the loan without the help of any third party and controversy.
Eligibility For The Student Loan:
1. Admission Into Accredited Higher Institution In Nigeria: Prospective students seeking this loan must have secured admission into any public University, polytechnic, college of education, or TVET School in Nigeria established by the federal government of Nigeria or any state government.
2. Earning/Salary Limit: Applicant income or family income must be lower than #500,000 ( five hundred thousand naira) per annum.
3. Civil Servant Guarantors: Prospective student loan seekers must provide at least two civil servants as guarantors: of not less than 12 years in service or a lawyer with at least 10 years post-call experience or a judicial officer or a justice of peace.
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Non-Eligible Students/Applicants For The Student Loan In Nigeria:
1. Applicant or Students who have in one way or another defaulted on previous loans
2. Students or applicants found guilty of examination malpractice in higher institution
3. Students or applicants with parents who have defaulted previously on loans they collected.
4. Students or applicants convicted of felony or drug offenses, fraud, or dishonesty are not eligible
If you are guilty of any of these items listed above, I’m truly sorry😪😪 you are disqualified from applying for the Student Loan Act.
The goal of the student loan is to give access to Nigerian students who meet the ethical standards of society and can not afford to go to the university.
let go of the student loan application process.😎
Application Process For The Student Loan In Nigeria And Required Documentation:
All qualified applicants from the institution must submit their applications through the student affairs office of their respective institutions, along with a list of their names and a cover letter that has been signed by the vice-chancellor, rector, or institution head, as applicable.
Required Documents DOcuments To Be Submitted TO The Student Affair:
1. A Copy of Admission Letter
2. A letter from your guarantors addressing the chairman of the student loan committee, each recommending you for the loan and also stating in the letter their willingness to accept the liability if you default in repayment
3. Two passport photographs of each of your guarantors
4. your guarantor employment information with the name of the organization stated
5. Information about your guarantors business ( if in the case of self-employed)
In accordance with the act, The student loan committee is expected to give feedback on your application within 14 days of them receiving your application.
Disbursement Of The Student Loan: Disbursement as stated in section 18 (4) of the Student Loan Act shall be based on the availability of funds.
However, processing and disbursement of any application by students shall be made within 30 days of the application reaching the chairman of the committee.
Repayment of The Loan: Any Beneficiary of the loan to which this Act refers shall commence repayment of the loan 2(two) years after completion of the National Youth Service Corps Programme (NYSC).
Meanwhile, Repayment shall be a direct deduction of 10% of the beneficiary’s salaries at source by the employer. Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly to the student loan account to be prescribed by the bank
Punishment For Repayment Defaulters: According to subsection (5) of the Student Loan Act, Any person who is found guilty or violates the Act or assists in such violations commits an offense and, if found guilty, faces a fine of N500,000 or two years in jail, or both.