Nigeria Student Loan Bill is one of its kind provided for Nigerians to help boost higher education in the country. This bill was signed into law by the President, Tinubu on 12 June 2023.
The loan bill will facilitate interest-free loans for all indigent students in Nigeria, making it possible for those needy who aspire to study to attain their dreams.
Central Bank of Nigeria and other stakeholders will be in charge of administering the loan. Although an Educational Bank will be established for the sole purpose of rendering the students loan to Nigerians.
Overview of Nigeria Student Loan Bill
The student loan bill was created out of pity and compassion for the students who pass through a lot to get through the expenses incurred as a result of pursuing a higher degree.
The bill has been present since 2019 but was finally signed into law by 2023. The management of the fund that will be signed for the loan has been put on the shoulders of capable bodies.
All Nigerian students having plans of gaining admission are advised to apply for the loan as it will reduce the cost-effectiveness of sponsoring the bills.
Any university of your choice can be considered acceptable by the management team of the student as long as the institution is within the country, of Nigeria. Note it is not an international loan.
Nigeria Student Loan Bill is designed in such a way that the student can pay back exactly what they borrowed. The bill is all that is needed now in the country owing to its condition as a developing country.
It serves as an encouragement to Nigeria Students out there to seize the opportunity of going back to gain higher education knowledge and become better citizens tomorrow.
Ways Funds Are Generated For Nigeria Student Loan Bill
Sponsorship of the student loan bill will be financed through various means and they include:
- Donations from organizations
- 1% of profits made from Oil and other mineral resources.
- Revenue both internal and externally generated.
- Education Bonds
- Education Endowment fund Schemes
These and many other sources will be employed by the federal government to make sure that the Loan bill is achieved.
Eligibility Criteria for Nigeria Student Loan Bill
The loan bill requires that certain requirements be met. It does not in any form place favoritism or discrimination.
The loan scheme is open for all Nigerian Students irrespective of race, tribe, religion, position, physique, age, and men or female.
It gives all an equal share in the process of the loan criteria, just meet up with the necessary documents needed and enjoy the loan.
Here’s a detail on the criteria needed:
- You must be a student of an institution or must be seeking admission into a federal or state university, a polytechnic, or a College of Education.
- A document that shows that you are a student of a school with the signatures of the Vice-chancellor and Faculty Officer will be required.
- An income of 500,000 yearly must be presented by the students or parents to ensure the ability to repay the loan when disbursed.
- Two guarantors will be expected to be provided, each should bring along a letter that recognizes that he is employed, and if self-employed should be able to present a business registration document.
- Also, the guarantor could be a high civil servant, a lawyer, or an officer of the law.
Benefits of Nigeria’s Student Loan Bill
Implementation of the Loan Bill Act has paved the way for efficient and enhanced educational access by students. It offers opportunities to all needy students irrespective of where they are coming from.
- It brings out the best in the student as it offers them interest-free loans to help them pursue their academics.
- It offers every student equal access to the federal loan. This helps bring equality and fair treatment among students in the country.
- The flexibility of Loan repayment is generous as it gives the student enough time to concentrate on school activities and pay back long after graduating from school.
- A provision of an Educational Bank is such that guides the student throughout their academic process. It helps in documenting and ensuring that the loan is administered in the best way possible to promote peace and order in the space of the program.
Aside from the above-listed benefits of the disbursement of the student loan, a lot of things poses as a trait of the program.
These challenges are as follows:
- Strict actions for defaulters especially self-employed students or parents who fail to meet up with the loan repayment.
- This action is taken to ensure strict adherence to the loan policy and thereby putting it to the persons involved that it is a serious commitment.
- Due to the high level of unemployment rate students may find it hard to secure jobs after school to enable them to pay up the loan, which poses a big problem.
- The rigid requirement criteria that involve the provision of two guarantors is a challenge as it will be difficult to see persons with the stated position ready to stand in for a student for a Loan.
Loan Repayment Period
The Nigeria Student Loan Bill clearly States that repayment of the Loan takes effect 2 years after the Student must have been done with studies and NYSC.
It allows for enough time for the student to work at paying back. More to that the loan will not be collected once but it will be gradually taken from the student or parent account.
The Bill cites that 1% of each month’s salary will be deducted from repaying the loan until it’s completed
However, if the payment of the loan is defaulted, legal actions might be taken to ensure that the loan is recovered.
Nigeria Student Loan Bill does not say that the person may be imprisoned but whatever action that might be taken will be legal.
A fee of 500,000 may be imposed on the students for failure to meet up with the repayment period.
This penalty fee only applies to unemployed students who cannot pay up the loan at the stipulated time. The Chairman of the Committee is assigned to take up any legal actions to make sure the money is recovered.
The Nigeria Student Loan Bill avails the opportunity for students to have Educational Access and Knowledge. Equality is also encouraged by the provision of this Act.
It is of immense benefit as it revolutionizes the educational era or process promoting empowerment in Nigeria.
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