The Federal Government of Nigeria has approved the application of Student Loan by Nigerian undergraduates in indigenous and public institutions. The approval of this loan was signed following the education bill which was enacted by the National Assembly of the federal Republic of Nigeria.
The bill reads, “An Act to repeal the Nigerian Education Bank Act Cap. N104, Laws of the Federation of Nigeria, 2004 and enact the Students Loans (Access to Higher Education) Act, 2023 to provide easy access to higher education for indigent Nigerians through interest free loans from the Nigerian Education Loan Fund established in this Act with a view to providing education for all Nigerians; and for related matters”
The student loan is meant to combat the hardship which many of the Nigerian Undergraduate student face in their education, as regards funding their respective tuition fees. Through this funding assistance, individuals who are finding the payment of their school fees difficult can apply for a stipulated amount of money in order to support themselves.
In this article, I am going to reveal to you, in elaborate way, the things you are expected to know about the newly established Federal Government Student Loan in Nigeria, eligibility, the application portal, application processes and so on. If you would like to know more about this, carefully read this article to the end.
- Aims of Federal Government Education Loan
- Eligibility for the Application of Student Loan
- Requirements for Students Loan in Nigeria Registration Form
- Nigerian Student Loan Application Portal
- How To Apply for Federal Government Student Loan 2023
- Disbursement of the Loan
- How to Repay the Student
- Members of Committee In-charge of Student Loan
Aims of Federal Government Education Loan
The Federal Government Student Loan was established with the following aims:
- facilitate the mobilisation of funds to provide interest free loans to students of institutions of higher learning in Nigeria for the payment of tuition fees; and
- ensure constant supply of loans to qualified students applicants for the purpose of providing education to all Nigerians.
Eligibility for the Application of Student Loan
Any Students applying for loan must satisfy following requirements:
- applicant must have secured admission into any of the Nigerian universities, polytechnics, colleges of education or any vocational school established by the Federal Government or the Government of any state of the federation.
- applicant income or family income must be less than N500,000 per anum;
- applicant must provide at least two guarantors, and each of the guarantors shall be a —
- civil servant of at least level 12 in the service,lawyer with at least 10 years post-call experience,
- judicial officer, or
- justice of peace
A student is disqualified from accessing the loan if:
- he is proven to have defaulted in respect of any previous loan granted by any organisation;
- he has be found guilty of exam malpractice by any school authority;
- he is convicted of a felony or any offence involving dishonesty or fraud
- he has been convicted of drug offenses; or
- any of the parents has defaulted in respect of students loan or any loan granted to the person
Guidelines to assist you get Nigerian Students Loan
- Research and understand different loan options.
- Determine your eligibility
- Gather the required documentation
- Go to your bank to request for the student loan application form
- Fill out the form
- Submit the form to your bank
Requirements for Students Loan in Nigeria Registration Form
- Candidate means of Identification such as National identity card or International Passport, etc
- Candidate Proof of Admission from an accredited institution in Nigeria
- Candidate Transcripts or academic certificates – if required
- Applicant Proof of income (e.g. parent’s or guardian’s income bank statements)
- Candidate Contact details and personal information of the guarantor(s)
- Candidate Recent passport-sized photographs
- Candidate Completed application form(s) provided by the loan provider
- Any additional documentation specified by the loan provider (e.g..reference letters, essay, letter of recommendation)
Also Read About: Biden Student Loan Forgiveness | All You Need To Know
Nigerian Student Loan Application Portal
The official application portal for the Nigerian education loan is only the one that is made available by the Central Bank of Nigeria (CBN). Once this portal is made live, it will be notified to the general public via necessary mediums.
Note: You should avoid clicking any suspicious links for the application, as cyber criminal must try to use this opportunity to perpetrate frauds in various forms.
How To Apply for Federal Government Student Loan 2023
To apply for the Nigerian Student Loan, you have to strictly follow all the following instructions:
- All applications must be submitted through the applicant’s bank to the Chairman of the Committee established under this Act accompanied by a cover letter signed by the vice- chancellor or rector or the head of the institution and the students affairs officer of the institution.
- Each application shall be accompanied by:
- copy of the student’s admission letter;
- a letter by the guarantors addressed to the Chairman of the Committee established under this Act recommending the student for the loan and stating that he accepts liability in the event of default;
- two passport photographs from each of the guarantor’s, name of employer and evidence of being so employed by the named organisation;
- particulars of guarantor’s business registration with the Corporate Affairs Commission or any other appropriate authority and his bankers, where the guarantor is self-employed.
- The Committee shall communicate to the applicant on the status of his application within 14 days of the receipt of any application
- Disbursement shall be on availability of funds
Disbursement of the Loan
Processing of any applicant’s application and disbursement shall be made within 30 days of the application reaching the Chairman of the Committee subject to decision of the committee
How to Repay the Student
- 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 and credited to the Fund
- Any change of job shall be communicated to the Chairman of the Committee within 30 day of resuming with his new employer with details of the new job
- Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly to the Fund
- For the purpose of subsection (4), a self-employed person shall within 60 days of assuming that status submit all information such as name of business, address and location, registration documents, if registered, name of bankers, names of partners, name of directors and shareholders to the Committee Any one in default of the provisions of subsection (5), or found to be aiding the default of subsection (5), commits an offence and is liable on conviction to a fine of N500,000 or imprisonment for a term of two years or both.
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Members of Committee In-charge of Student Loan
The Committee shall consist of —
- the Governor of the Central Bank of Nigeria as the Chairman;
- the Secretary of the Fund who shall be appointed by the Chairman;
- the Minister responsible for education;
- the Chairman, National Universities Commission;
- a representative of Vice-Chancellors forum of all Nigeria Universities;
- a representative of the Rectors forums of all Nigerian Polytechnics and Provosts forum of all Colleges of Education in Nigeria;
- the Minister responsible for finance or his representative;
- the Auditor-General for the Federation;
- a representative of the Nigerian Labour Congress;
- a representative of the Nigerian Bar Association; and a representative of the Academic Staff Union of Universities.
I hope you have found this article useful. In case of any other inquiries about the Federal Government Student Loan in Nigeria, kindly make use of the comment section.