student loanstudent loan

The moment has come to determine how you will pay for your education, regardless of whether you are just weighing your alternatives or are contemplating offers and scholarships from institutions.

In order to ensure that your student loan will be available for use when you begin your undergraduate studies or during the process of this year 2024, you must apply must apply quickly. Otherwise, your loan may not be available when your courses begin.

While many choose to finance their studies with a student loan, there are other options for funding. Make sure you understand the facts on how student loans operate and are repaid before making your choice.

In Nigeria, on June 12, 2023, President Bola Tinubu signed the Student Loan Bill into law in an effort to provide interest-free loans to Nigerian students. Femi Gbajabiamila, the current Chief of Staff and Speaker of the 9th House of Representatives, was the driving force behind the measure.

The Act, which becomes operative upon the bill’s signing, will create the Nigerian Education Bank and grant it the authority to “supervise, coordinate, administer, and monitor the management of student loan in Nigeria.”

Requirements for the loan application

In order to apply for the student loan, the students are required to apply through the Chairman of the Bank through their institutions after satisfying the following conditions:

Student must have secured admission into any public Nigerian University, Polytechnic, college of education or any TVET school

Applicant income or family income must be less than N500,000 per annum; 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.

Those who are not eligible to apply for the student loan

Those not qualified to apply for loan Students who have defaulted on previous loans; and found guilty of exam malpractice, felony, or drug offences will not be considered.

Students with parents who have defaulted in respect of previous loans will not be considered.

student loan
Student loan: credit- pixabay

How to apply

The next step for applicants who met the requirements above would be to submit their applications through their institution’s Students Affairs Office.

The Vice-Chancellor or Rector or the head of the institution and the Student Affairs will sign the list of all qualified applicants from the institution accompanied by a cover letter.

How much will be paid as student loan

According to BBC Pidgin, President Tinubu’s Student Loan Bill does not specify how much money would be awarded to each successful applicant. According to education specialist Sadiq Aminu, the debts seem to depend on the school, length of study, and subject of study.

How to repay the student loan

According to the act, the repayment will be a direct deduction of 10% of the student’s salary from the source and for self-employed, the government will collect 10% of the total profit each month. The Education Bank will collaborate with employers to make sure they deduct the required amount from their salary and pay to the student loan fund account.

The repayment will be a direct deduction of 10% of your salary from the source and for self-employed, the government will deduct 10% of your total profit each month.

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When will the student loan start

It will start by January 2024. Applicants will apply online, be verified online, and be credited based on the verifiable documents and credentials they have submitted. Nobody will need to know anybody to qualify for these loans, so that access to this financing will be genuinely egalitarian.

We wish you the best…Keep eye on this page to be notified immediately it begins.

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