The President of Nigeria, Asiwaju Bola Ahmed Tinubu has signed the Students Loan Bill into law, All Nigeria Latest News reports.

The bill aims to facilitate Nigerian students’ access to loans at interest-free rates.

Additionally, the bill is anticipated to lead to the establishment of an education bank.

Here are things to know before applying for student loan:

  1. Students applying for loan must apply to the Chairman of Nigerian Education Bank through their respective institutions. 
  2. They 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. 
  3. Applicant must provide at least two guarantors.
  4. Each of the guarantors must be a civil servant of not less than level 12 years in service, or a lawyer with at least 10 years post-call experience; of a judicial office of a justice of peace. 
  5. All applications from every institution must be submitted through the Student 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 students affairs officer and addressed to the chairman of the board of the bank.

Each application must be accompanied by the following:

  1. Copy of student’s admission letter
  2. Letter by the guarantors addressed to the chairman, governing board of the bank recommending the student for the loan and stating that he accepts the liability in the event of default. 
  3. Each guarantor must submit two passport photographs, name of the employer and evidence of being so employed by the named organisation.
  4. Each institutions must ensure that all applications from its school reach the bank not more than 30 days after close of admission for the academic year.
  5. Where the guarantor is self-employed, he must provide particulars of his business as registered with the CAC or any other appropriate authority.

A student can be disqualified from accessing loan if:

  1. He is proven to have defaulted in respect of any previous loan granted by any organisation.
  2. He has been found guilty of exam malpractice by any school authority.
  3. He’s convicted of felony or any office involving dishonesty or fraud
  4. He has been convicted of drug offenses
  5. Any of his parents has defaulted in respect of student’s loan or any loan granted to him or her. 

For repayment of the loan:

  1. Any beneficiary of the loan shall commence repayment two years after completion of NYSC
  2. Repayment shall be by direct deduction of 10% of the beneficiaries salary at source by that employer and credited to the students loan account.

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