President Bola Ahmed Tinubu has signed the Student Loan Bill into law.
Dele Alake, a representative of the Federal Government, disclosed this to State House Correspondents on Monday evening.
The bill will enable Nigerian students to access loans at interest-free rates.
The signing is a fulfilment of the Campaign pledge by the President to institute a Student Loan Scheme that will ensure Indigent Nigerians can have access to Education by accessing Loans through a Financial Institution of their choice.
The Scheme is similar to those enjoyed by College students in the Western Nations such as the United States of America, a notable beneficiary of the Scheme is former United States President, Barak Obama in his student days.
The proper implementation of the Scheme is expected to help in expanding access to Education for many less ;privileged Nigerians and ensure the deepening of the Human resources pool for the nation.
The Economy is expected to be driven by the nations’ Human Capital which will expand with this development.
Read some of the Highlights of the Bill below…
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 Ghajabiamila
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:
(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.
