The Student Loan Bill which is now Law is officially known as AN ACT TO PROVIDE EASY ACCESS TO HIGHER EDUCATION FOR NIGERIANS THROUGH INTEREST-FREE LOANS FROM NIGERIAN EDUCATION BANK ESTABLISHED
Requirements for Student Loans in Nigeria
1. Students applying for loans under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions:
(i) Student must have secured admission into any public Nigerian University, Polytechnic, COE, or TVET school
2. Applicant’s income or family income must be less than ₦500,000 per annum;
3. Applicant must provide at least two civil servants as guarantors: of not less than level 12 years in service; or a Lawyer with at least 10 years post-call experience; a judicial officer; or a Justice of Peace.
4. Students who have defaulted on previous loans; found guilty of exam malpractices, felony, or drug offenses will not be considered.
5. Students with parents who have defaulted in respect of previous loans will not be considered.
6. All Applications will be submitted through the Students 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 student affairs.
7. Any beneficiary of the loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps program.
(Repayment shall be by direct deduction of 10% of the beneficiaries’ salary at source by the employer.
Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly to the Student loan account to be prescribed by the Bank.
