How to Apply for Student Loans in Nigeria – School funding has long been the biggest challenge for Nigerian students. On June 12, 2023, while Nigerians were enmeshed in the nostalgia that Democracy Day evokes, President Bola Tinubu signed the student loan bill into law, Enabling students to apply for a Government student loan in Nigeria.
The Student Loan Act opens doors to affordable education and has a straightforward, and there is streamlined Nigerian Government student loan application documentation process.
However, the recently signed Student Loan Act has stipulated conditions upon which a student could access the loan. The Act provides conditions and exceptions for obtaining the Student Loan. Among the guidelines is that students or their parents may not have defaulted on any previous loan.
Nigeria Government Student Loans Application Eligibility Criteria
To be eligible to apply for student loans in Nigeria, you must meet the following requirements.
- All students who have secured admission into any public Nigerian university, polytechnic, college of education, or any technical and vocational education and training (TVET) school can apply for Nigerian student loans.
- The student’s income or family’s income must be less than N500,000 per annum to be qualified for the loan.
- Guarantors: Applicants must provide a minimum of two guarantors each who must fall into one of the following categories:
- Civil servants of at least level 12 in the service,
- Lawyers with at least 10 years of post-call experience,
- Judicial officers or Justices of the peace.
Ineligibility for Student Loan Access
If a student is proven to have defaulted on any previous loan granted by any organization, they are disqualified from accessing the loan.
Exam Malpractice; Conviction of felony or offenses of dishonesty or fraud. Students convicted of a felony or any offense involving dishonesty or fraud are ineligible for the loan.
Drug Offenses: Students convicted of drug offenses are disqualified from accessing the loan.
Parental loan default: If any 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.
How to Apply for Student Loans in Nigeria
- Prospective students seeking access to the loan must follow specific steps to initiate their applications.
- Prospective students are required to submit relevant documents to their respective banks.
Required Documents
Each application must be accompanied by several documents, including a copy of the student’s admission letter.
The Committee is obligated to communicate the status of the applicant’s application within 14 days of receiving the application.
Nigeria Students Loan Disbursement
The Students Loan Bill sets out the process for loan disbursement:
Timely Processing: Processing any applicant’s application and issuance shall be completed within 30 days of the Students Loan application reaching the Chairman of the Committee, subject to Section 18 (4) of the Act.
Student Loans in Nigeria Repayment Method
According to the law, the employers of successful applicants must deduct the loan from their salaries after they must have completed their National Youth Service Corps (NYSC) programme.
“Any beneficiary of the loan to which this act refers shall commence repayment two years after completion of the NYSC programme,” the document said.
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“Repayment shall be by direct deduction of 10 percent of the beneficiaries salary at source by the employer.
Requirements for Self-employed Persons
Self-employed beneficiaries must remit 10% of their total monthly profit to the Fund.
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.
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 two years, or both.
We believe the process on how to apply for Student Loans in Nigeria was helpful. These loans can be used to pay tuition fees, accommodation, books, and other educational expenses.
Access to student loans in Nigeria from multiple banks provides Nigerian students and parents with increased options and flexibility when financing their education.
