The Federal Government has revealed the lists of students who will not participate in the student loan which President Bola Ahmed Tinubu signed into law on Monday 12, 2023 during Democracy Day.
The Student Loan Bill was signed into law by President Bola Tinubu on Monday, June 12, 2023. The bill, which will provide interest-free loans to Nigerian students, was introduced by the outgoing Speaker of the House of Representatives, Femi Gbajabiamila.
On May 23, 2023, the bill passed the second reading in the lower house.
According to higher education experts, with the establishment of an education bank, tertiary institutions owned by the Federal Government may now be free to introduce tuition fees.
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Already, some universities owned by the federal government have announced tuition increases. According to the bill, which our correspondent spotted on Monday, students seeking loans under this Act must apply to the Chairman of the Bank through their respective institutions if they meet the following criteria:
- 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.
- Students who have defaulted on previous loans; found guilty of exam malpractice, felony, or drug offences will not be considered.
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iii. Students with parents who have defaulted in respect of previous loans will not be considered.
Following the fulfilment of the aforementioned conditions, applications for loans will be submitted through the Students Affairs Office of each institution, accompanied by a list of all qualified applicants from the institution and a cover letter signed by the Vice-Chancellor or Rector or the head of the institution and the Student Affairs. The act specifies that “any beneficiary of the loan to which this Act refers shall begin repayment two years after completion of the National Youth Service Corps programme.” The employer will deduct 10% of the beneficiary’s salary at the point of sale as repayment.
“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.
BY DAYO ADESULU