President Bola Ahmed Tinubu has signed the Student Loan Bill into law to improve the education sector across the country.
The legislation aims to provide interest-free loans to financially disadvantaged Nigerian students, opening doors of opportunity for higher education. The newly made law paves the way for the establishment of the Nigerian Education Bank. This institution will be vested with the authority to supervise, coordinate, administer, and monitor the management of student loans across the country. It will serve as the central hub for processing loan applications from students attending higher educational institutions in Nigeria.
The bank, it is understood, will carefully screen these applications to ensure they meet all the requirements outlined in the Act. Additionally, the Nigerian Education Bank will hold the power to approve and disburse loans to qualified applicants. It will diligently monitor and coordinate the students’ loan accounts, ensuring compliance with disbursement procedures. The bank will also keep track of the academic records of loan recipients, including information on their graduation, national service, and employment.
This monitoring process ensures that loan beneficiaries commence repayment promptly when due, among other vital functions. The Bill stresses equal access to the loan scheme for all students pursuing higher education in public institutions within Nigeria. Discrimination based on gender, religion, tribe, social standing, or disability it is gathered, is strictly prohibited under this Act, ensuring fair and inclusive opportunities for all. Tinubu signed the bill on Monday at the Presidential Villa, Abuja.
According to the bill’s provisions, students seeking loans under this Act must apply to the Bank Chairman through their respective institutions, provided they meet the following conditions:
i. The student must have secured admission into a public Nigerian University, Polytechnic, college of education, or any TVET school.
ii. The applicant’s income or family income must be less than N500,000 per annum.
iii. The applicant must provide at least two civil servants as guarantors: either individuals serving at a minimum of level 12 for at least twelve years, a Lawyer with at least ten years of post-call experience, a Judicial officer, or a Justice of Peace.
