With a significant stride towards enhancing access to higher education, Nigeria’s President Bola Tinubu has recently signed the Students Loan Bill into law, ushering in a transformative era for educational funding in the country.
The Students Loan Bill not only opens doors to affordable education but also outlines a clear and streamlined application and documentation process.
You can read our explainer article which contains other details of the bill here.
How to apply for the Students Loan
Prospective students seeking access to the loan are required to follow specific steps to initiate their applications.
These steps include submission through their respective banks, accompanied by a comprehensive set of required documents.
Eligibility
To apply for a loan under the Students Loan Bill, prospective students must satisfy the conditions outlined in Section 17 of the Act.
These conditions are as follows:
(a) Admission into Accredited Institutions: Applicants must have secured admission into Nigerian universities, polytechnics, colleges of education, or vocational schools established by the Federal Government or any state government.
(b) Income Limit: The applicant’s individual or family income must not exceed N500,000 per annum.
(c) Guarantors: Each applicant must provide a minimum of two guarantors. The guarantors must fall into one of the following categories: (i) Civil servants of at least level 12 in the service, (ii) Lawyers with a minimum of 10 years of post-call experience, (iii) Judicial officers, or (iv) Justices of the peace.
Ineligibility for Loan Access
Under the Students Loan Bill, certain circumstances disqualify students from accessing the loan. These disqualifying factors include:
(a) Previous Loan Default: If a student is proven to have defaulted on any previous loan granted by any organization, they are disqualified from accessing the loan.
(b) Exam Malpractice: If a student is found guilty of exam malpractice by any school authority, they will be disqualified from receiving the loan.
(c) Conviction of Felony or Offenses of Dishonesty or Fraud: Students who have been convicted of a felony or any offense involving dishonesty or fraud are ineligible for the loan.
(d) Drug Offenses: Students who have been convicted of drug offenses are disqualified from accessing the loan.
(e) Parental Loan Default: If any of the student’s parents have defaulted on a student loan or any other loan granted to them, the student will be disqualified from receiving the loan.
These disqualification criteria ensure that the loan is allocated to students who meet the necessary ethical standards and have a genuine commitment to their academic pursuits.
Application Process and Documentation
The Students Loan Bill outlines the method of application for prospective students seeking the loan. The application process involves the following steps:
Submission through the Applicant’s Bank: All applications must be submitted through the applicant’s bank to the Chairman of the Committee established under the Act.
A cover letter signed by the vice-chancellor, rector, or the head of the institution, along with the student affairs officer of the institution, should accompany the application.
Required Documents: Each application must be accompanied by several documents, including a copy of the student’s admission letter.
- Additionally, a letter from the guarantors addressed to the Chairman of the Committee, recommending the student for the loan and accepting liability in the event of default, is required.
- The application should also include two passport photographs from each guarantor, information on the guarantors’ employment and proof of employment with the named organization, as well as particulars of the guarantors’ business registration or relevant authority if self-employed.
Application Status Communication: The Committee is obligated to communicate the status of the applicant’s application within 14 days of receiving the application.
Disbursement
The Students Loan Bill sets out the process for loan disbursement:
Timely Processing: Processing of any applicant’s application and disbursement shall be completed within 30 days of the application reaching the Chairman of the Committee, subject to Section 18 (4) of the Act.
This ensures that loans are processed efficiently and promptly.
Repayment
The repayment terms for beneficiaries of the loan are outlined in the Students Loan Bill:
Commencement of Repayment: Loan repayment shall commence two years after completion of the National Youth Service Corps program.
Salary Deduction: Repayment shall be facilitated through a direct deduction of 10% of the beneficiary’s salary at source by the employer. The deducted amount will be credited to the Fund.
Notification of Job Changes: In the event of a job change, beneficiaries are required to notify the Chairman of the Committee within 30 days of resuming employment with the new employer, providing details of the new job.
Self-Employed Individuals: Self-employed beneficiaries are required to remit 10% of their total monthly profit to the Fund.
Reporting of Self-Employment Status: Self-employed individuals assuming this status must submit relevant information, such as business name, address, location, registration documents (if applicable), bank details, partner names, and director/shareholder names, to the Committee within 60 days.
Penalties for Default: Any individual who defaults on the provisions of subsection (5) or aids in such default commits an offense and, upon conviction, is liable to a fine of N500,000 or imprisonment for a term of two years, or both.
- This emphasizes the importance of adhering to the repayment obligations outlined in the Act and discourages default or aiding default.
The loan repayment terms and penalties aim to ensure timely and responsible repayment, contributing to the sustainability of the loan program and the availability of funds for future students.
Note: This article was updated to reflect new information
How can I apply for the student loan signed by the mr. President: Alhaji Amed Bola Tinubu?
I’m confused. When did the bill pass through the NASS?
Anyway, suspect this will end up being another poorly-administered government boondoggle with the usual over-bloated bureaucracy. The government should instead have designed it to run through the banks, with a federal government guarantee. Furthermore, defaulters should be denied certain (not all) governmental services, including the issuance of a passport.
The questions you asked proves you didn’t carefully read through the article.
Your suggestions are however better.
Education is the bed rock of a nation, thank you for this opportunity,you educate one woman you educate all women
Beautiful loan bill and a smart move by the president. For this to work well, jobs must be in place before they graduate. Please provide employment
The bill has good intentions but unfortunately the execution doesn’t look great – imprisonment for loan default won’t work – we need a robust bankruptcy law / procedure or a set of rules that realistically state what happens in the event of default. / loan default is a civil matter, not a criminal matter – this will be challenged in court.
Guarantors – aren’t needed
Allowing the chairman to approve loans is an open door to corruption – the process should be an objective & possibly online process that auto approves or rejects based on responses to specific questions or documents submitted.
Why is the credit history of parents important? – who is taking the loan? Who is expected to payback?
We have a history of good ideas that get subsumed in onerous procedures and processes….these requirements as listed – will defeat the purpose.
YOU’RE ABSOLUTELY RIGHT
How do I start the process for the loan application?
Good question
The students loan bill appears to have noble intentions. however, the stipulated requirements might undermine its intended purpose.
It’s be best if the requirements and penalties will be reviewed.
The bill has good intentions but unfortunately the execution doesn’t look great – imprisonment for loan default won’t work – we need a robust bankruptcy law / procedure or a set of rules that realistically state what happens in the event of default. / loan default is a civil matter, not a criminal matter – this will be challenged in court.
Guarantors – aren’t needed
Allowing the chairman to approve loans is an open door to corruption – the process should be an objective & possibly online process that auto approves or rejects based on responses to specific questions or documents submitted.
Why is the credit history of parents important? – who is taking the loan? Who is expected to payback?
The students loan bill appears to have noble intentions. however, the stipulated requirements might undermine its intended purpose.
It’s be best if the requirements and penalties will be reviewed.
THE REQUIREMENTS ARE HINDRANCES TO THIS NOBLE COURSE
Great bill mr president but poor execution. Mr president if there is job, the loan can be paid but if there is none 4get it.
Good effort
How can i also apply
Great move, my thump is proud of your mr. President
It appears the loan is for only first degree seekers. What happens to those that have the dream of acquiring Masters/P.hd degree?, Because first degree in Nigeria is like a waec.
thank s baba the program can help Nigeria’s and development of the nation
Is open university included?
All of that requirements…
SMH
Great job sir,Am interested in getting the loan to make my schooling easier
Good and great! I assumed that i’ve mated up with all the requirements, i am now looking for a link or whatever is it that will get me on the platform.
This is a nice by Mr. President but the requirements are complicated. Having the Vice-Chancellor and the Dean of Students Affairs write a cover letter for you is not easy in our contemporary society. Also, the categories of persons required as guarantors are not easy for the common man especially when they have to write an undertaking for you. Application should also be made online. If not these requirements, the repayment term is very okay.
Good work mr president.l’m passionately appealing that the loan should be extended to M.SC/PhD student.
Good palliative, the parents/guardian/sponsor of the student applicant should be made one of the guarantor
I really appreciate Mr. President but he shouldn’t mention prison first, the applicant’s informations are before the bank and it’s very sure that the bank can deduct that 10% whenever it’s credited.
This so called student loan is a scam. For those praising tinubu are doing so out of ignorance.
Have you read the terms and conditions for the Student Loan?
1. The Applicants or his parents must be earning total income less than #500k a year. Now slow down and so the maths
To earn #500k a year means that the husband and wife are earning less than #41,000 a month. That is #20,000 each While minimum wage is #30,000
Which means if your both parents are earning, you are automatically disqualified because they are either earning more than #41,000 or they do not pay tax because you cannot pay tax on salary below minimum wage
3. Now here is the high jump of the Act: These 2 people earning less than #50,000 will now have to provide a DIRECTOR IN CIVIL SERVICE and a LAWYER OF 10YEARS IN SERVICE as Guarantor
Take into consideration, yourself doing good for your self, do you know DIRECTOR in Civil Service?
4. The Director and Lawyer has to surety that if you default, they will pay the loan
Do you know what this means, NO DIRECTOR WILL TAKE SUCH SURETY.
But here is the worst part
5. After you meet all these requirements, will you get the loan? NO!
The act said “Loan will be given when funds are available. In other terms, you are still at the mercy of the system”
Things about Nigeria is always different, Mr President do you think everyone have access to lawyer in his community? Even you have access to they go won collect the half of the loan from you. Better you council to student loan because the condition is too much, people like me can not provide such guarantor.
Please what is the link or website to submit my requirements for the student loan
1 want to be updated immediately the process start taking place please?
I need loan to do business
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Requirements for student loan