Welcome to Student Navigator, In a significant move aimed at improving access to education, President Bola Tinubu of Nigeria signed the Student Loan Bill into law on Monday, June 12, 2023. The bill, championed by the outgoing speaker of the House of Representatives, Femi Gbajabiamila, promises interest-free loans for Nigerian students.
According to reports, the legislation underwent a successful second reading at the lower house on May 23, 2023, signaling broad support for the initiative.
One of the key highlights of the bill is the establishment of an education bank, which experts believe could potentially enable tertiary institutions owned by the Federal Government to introduce tuition fees. This move has sparked discussions within the higher education sector regarding the potential implications of such a change.
Already, some Federal Government-owned universities have started announcing fee increases. A December 2022 report highlighted a 200 per cent hike in fees at certain institutions. The introduction of the education bank is seen as a strategy to address funding challenges within tertiary education.
The bill outlines specific eligibility criteria for students applying for loans under its provisions:
– Applicants must have secured admission into a public Nigerian University, Polytechnic, college of education, or any TVET school.
– Applicant or family income must be less than N500,000 per annum.
– Applicants must provide at least two civil servants as guarantors, with a minimum of 12 years in service, or a Lawyer with at least 10 years post-call experience, a Judicial officer, or a Justice of Peace.
Furthermore, the bill imposes restrictions on certain categories of students. Those who have defaulted on previous loans or have been found guilty of exam malpractice, felony, or drug offences are ineligible. Additionally, students with parents who have defaulted on previous loans are also excluded from consideration.
The application process involves submission through the Students Affairs Office of each institution, accompanied by a list of qualified applicants and a cover letter signed by the respective institution’s authority.
Repayment terms stipulate that beneficiaries will commence repayment two years after completing the National Youth Service Corps program. Repayment will occur through direct deduction of 10 per cent of the beneficiary’s salary by the employer. Self-employed individuals are required to remit 10 per cent of their total profit monthly to the student loan account.
The bill also contains provisions for enforcement, stating that anyone in default or found aiding defaulters will face penalties, including imprisonment or fines.
The Student Loan Bill represents a significant step towards enhancing access to higher education in Nigeria, providing a pathway for students to pursue their academic aspirations without financial constraints.