According to a member of the Presidential Strategic Team, Dele Alake, and other close aides of the president, including Tunde Rahman and Abdulaziz Abdulaziz, as well as the Permanent Secretary, Ministry of Education, David Adejoh, Alake said: “We are very happy to announce to you that today, just a few minutes ago, the President, His Excellency, Bola Ahmed Tinubu, signed into law the Student Loans Bill and that Student Loans Bill. You all know what it entails and what it connotes.
It was disclosed at the Presidential Villa, Abuja yesterday.
How the FG student loan works
- The student must have secured admission into any public Nigerian university, polytechnic, college of education, or TVET school; The applicant’s or family’s income must be less than N500,000 per annum; The applicant must provide at least two civil servants as guarantors: a civil servant of not less than level 12 years in service; a lawyer with at least 10 years post-call experience; a judicial officer; or a justice of peace.
- Students who have defaulted on previous loans or were found guilty of exam malpractice, felony, or drug offenses will not be considered.
- Students with parents who have defaulted on previous loans will not be considered.
Following the satisfaction of the conditions listed above, applications for the loans 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, Rector, or head of the institution and the Student Affairs Office.
On repayment, the act states that “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 percent of the beneficiary’s salary at source by the employer.
“Where the beneficiary is self-employed, he shall remit 10 per cent of his total profit monthly to the student loan account to be prescribed by the bank.
“For the purpose of sub-section 3 above, a self-employed person shall, within 60 days of assuming that status, submit all information such as the name of business, address and location, registration documents, registered, name of bankers, names of partners, name of directors and shareholders to the Commission.
“Anyone in default of the provisions of sub-section 4 above or found to be aiding the default of any of the provisions of this Act is guilty of an offence and, if convicted, shall be liable to imprisonment for two years or a fine of N500,000 or both.”
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