This is to inform the general public that in an attempt to give Nigerian students access to interest-free loans, President Bola Tinubu has signed the Student Loan Bill into law on June 12, 2023. After signing the bill into law, the Act will establish the Nigerian Education Bank and empower it to “supervise, coordinate, administer and monitor the management of student loan in Nigeria.
Requirement for student loan
According to The Punch, the Act stipulates that interested students are to apply to the Chairman of the Bank through their institutions after satisfying the following conditions:
1. You must be a Nigerian
2. Student must have secured admission into any public Nigerian University, Polytechnic, college of education or any TVET school
3. Applicant income or family income must be less than N500,000 per annum
4. 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.
Those not qualified to apply for loan
1. Students who have defaulted on previous loans; and found guilty of exam malpractice, felony, or drug offences will not be considered.
2. Students with parents who have defaulted in respect of previous loans will not be considered.
How much can students borrow as loan?
The Student Loan Bill signed by President Tinubu did not state the amount each successful student would be given. An education expert, Sadiq Aminu, said it appears the loans will be based on the institution, course of study, and duration.
When students start to repay the loan
According to the act, the repayment will be a direct deduction of 10% of the student’s salary from the source and for self-employed, the government will collect 10% of the total profit each month.
The Education Bank will collaborate with employers to make sure they deduct the required amount from their salary and pay to the student loan fund account.
The repayment will be a direct deduction of 10% of your salary from the source and for self-employed, the government will deduct 10% of your total profit each month.
How to apply
Applicants who satisfied the above conditions would move to the next level by submitting their applications through the Students Affairs Office of their institution
Comparison to Existing Schemes
The new student loans initiative should not be confused with existing schemes. Previously, the Federal Scholarship Board Scheme provided scholarships to eligible students. The new Student Loans Bill creates a loans board that enables students who couldn’t qualify for scholarships to apply for an interest-free loan for their education.
Ensuring a Smooth Transition
The new law is set to take immediate effect, although the committees will oversee the implementation procedures. The Ministry of Education assures that the lessons learned from previous loan recovery rates will guide the operation of the new federal students loans board.
The bottom line is the creation of an inclusive and equitable opportunity for all Nigerians seeking higher education. No Nigerian should ever be forced to forgo their education due to financial constraints.
Conclusion
The introduction of the Student Loans Bill is a significant step towards democratizing access to higher education in Nigeria. This bold move by President Bola Tinubu shows his commitment to fostering an environment where every Nigerian has the opportunity to pursue higher education. The future of Nigerian education indeed seems promising.
Equipping the younger generation with the skills and knowledge to face future challenges is crucial in a rapidly evolving global landscape. This bill is a significant stride towards that end.
Through the introduction of this legislation, a wider pool of Nigerian citizens will be able to pursue higher education. This legislation will cultivate a society characterized by increased knowledge, enhanced skills, and a vibrant culture of innovation.