No More Working While Studying? New Law Promises Loans to Nigeria Student, Here's The Steps To Apply

 No More Working While Studying? New Law Promises Loans to Nigeria Student, Here's The Steps To Apply

 

Federal Government Student Loan is One of the central pillars of President Bola Tinubu's Renewed Hope Agenda is the implementation of a student loan programme, aiming to alleviate the financial burden of education until graduates secure employment.

The President of Nigeria, Bola Ahmad Tinubu, has made it law to give the country's high school students who come from low-income households the opportunity to get interest-free education loans from the Nigerian Education Loan Foundation.

In November last year, the Nigerian Federal Council approved the bill, which seeks to establish an institution that will provide school loans to the students of the country's higher education institutions.

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The new law is the first of its kind in Nigeria and according to the Chief of Staff of the President's Office, Femi Gbabiamila, who brought the bill when he was the speaker of the parliament, it will improve the country because no Nigerian student will be denied. access to higher education due to lack of money.

Before this law was issued, banks in the country used to give loans for school fees to the parents of children even with strict conditions and a short period of payment.

Many underprivileged students in Nigeria rely on higher education because of lack of money or do other jobs or jobs that they should not be doing while they are studying in order to earn money to pay for the education.

Things you should know about the student loan law in Nigeria.

The provisions of the law About The Student Loan 

• Under the law, the Education Bank of Nigeria will be established, which will plan, monitor and implement the provision of education loans.
• According to the provisions of the new law, a student can get the loan through the Ministry of Education of the country, and he will not start paying the loan until he gets a job after graduation and one year of national service (NYSC).
• Students can apply for the loan through the schools they are in, where the schools will advance them.
• The student will be assessed to see if he is eligible to receive the loan.
• The law will not apply to any student who is going to study outside of Nigeria, or who is studying in a non-government school.

Who is eligible to receive the debt (Loans)

• Before you are eligible for the loan, you must first get a place to study in a state or federal high school - be it a university, a polytechnic, a college of education or a vocational school.
• Your income or your parents' income must be less than 500 thousand naira per year.
• The student must present his/her guarantors, at least two people who will be government employees who have been working for 12 years.
• A student can present a lawyer who has been working for 10 years or another legal worker.
• If the student is in a non-government school, he will not get this license.
• There is no mention of discrimination or discrimination against any student based on gender, male or female, religion or any other disability.
• The loan will be for school fees only.

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Those who will not be in debt (Not Eligible For The Loan)

1. If you have borrowed from the Bank of Education in the past and you have refused to pay.
2. If any school has ever found you guilty of dishonesty or fraud, then you are not among those who will benefit from the system.
3. If you have ever been arrested for a drug-related crime, this will also prevent you from getting the loan.
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5. If any of your parents, either mother or father, do not pay the student loan, then it will not be given to you.
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7. How you will pay the debt (Student loan)
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9. It is part of the work of the Bank of Education to track the person who has been given the loan to know when he will finish his studies, and the work of serving the country until getting a job to ensure that the person starts paying at the right time.
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11. The bank will coordinate with where you work to ensure that the money that should be deposited in the account that gave you the loan is cut.
12. Anyone who is given the loan will start paying it back two years after completing the National Service (NYSC).
13. 10 percent of your salary will be deducted.
14. If you are doing your own work, that is, you are not working under someone else, then the government will take 10 percent of the profit you get every month, where you will take the money to the bank yourself; Sixty days after you become a self-employed person, you will submit information about your business or work, for example your bank, where you live, business partners and those who have shares in it and other information
15. If you refuse to pay the debt, you can be sentenced to two years in prison or a fine of 500 thousand naira or a combination of both.