How To Apply for Nigeria Student Loan

Are you a Nigeria Student and have been looking for how to apply for a Nigeria student loan? This article has provided you with the necessary steps and documents required to apply for a Nigeria student loan. As already known that some of the tertiary institutions owned by the federal government have started the increment of tuition fees.

Therefore it is believed that the student loan bill will enable Nigerian students to have access to free loans to help address the funding gap in tertiary institutions.

The Nigeria student loan was introduced by the outgoing speaker of the House of Representatives, Femi Gbajabiamila, and was signed into law on Monday, June 12 by President Bola Ahmed Tinubu.

Student loan debt is a part of many people’s lives due to the high cost of a tertiary institutions. If you are planning to apply for one, make sure you understand how the application process and procedures and student loan debt work. It can make a big difference in how you will repay your loan. In this article, we have provided you with the application procedures and requirements of the Nigeria student loan.

How To Apply For Nigeria Student Loan

To apply for a loan under the Students Loan Bill, Nigerian students must satisfy the conditions outlined in Section 17 of the Act. Students seeking access to the loan are required to follow specific steps to initiate their applications. These steps include applications through their respective institutions, and banks and also having some set of required documents satisfying the following conditions:

1. Applicants must have secured admission into any Nigerian institutions be it universities, polytechnics, colleges of education, or vocational schools established by the Federal Government or any state government.

2. Applicant’s income or family income must not be more than N500,000 per annum

3. Applicants 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.

With all these requirements, access to the loan bill by prospective students will be granted.

Application Procedures And Documentation

For the Application process and documentation, there are steps to follow under the act to have full access to the student loan bill. The Students Loan Bill outlines the method of application for prospective students seeking the loan. The application process involves the following steps:

1. Through the Applicant’s Bank: All applications must be submitted through the applicant’s bank to the Chairman of the Committee established under the Act. A cover letter signed by the applicant’s school authorities should accompany the application.

2. Documents Required: Applicants must attach the required documents including a copy of the student’s admission letter. Also, a letter from the guarantors addressed to the Chairman of the Committee, recommending the student for the loan and accepting liability in the event of default.

Additionally, The application should also include two passport photographs from each guarantor, information on the guarantors’ employment and proof of employment with the named organization, as well as particulars of the guarantors’ business registration or relevant authority if self-employed.

3. Application Status: Within 14 days of receiving the application, the application status of the applicants should have been made known or communicated by the Committee obligated to communicate the status of the applicant’s application.

The Students Loan Bill sets out the process for loan disbursement

4. The Processing: The Processing of any applicant’s application and disbursement shall be completed within 30 days of the application reaching the Chairman of the Committee, subject to Section 18 (4) of the Act.

It ensures that loans are processed efficiently.

However, the repayment terms for beneficiaries of the loan are outlined in the Students Loan Bill stating the commencement of the repayment, salary deduction, notifications of job changes, the status of the self-employed, and penalties.

• The loan repayments shall commence two years after completion of the National Youth  Service Corps of the Applicants
• Repayment shall be made easy through a direct deduction of 10% of the beneficiary’s salary at the source by the employer. therefore the deducted amount will be credited to the fund.
• if there is a job change, beneficiaries are required to notify the chairman of the committee within 30 days of resumption with the new employer and must provide details of the new job.
• Self-employed beneficiaries are also required to remit 10% of their monthly profit to the fund and must submit relevant information about their status such as business name, address, location, and bank details to the committee within two months.
• Anyone in default of the provisions of sub-section (4) or found to be aiding the default of any of the provisions of this Act is guilty of an offense and, if convicted, shall be liable to imprisonment for two years or a fine of N500,000 or both.

FAQs

Is it possible to get a student loan in Nigeria?

Who is qualified to apply for a student loan?

Nigeria Students

Can I get a loan without a job in Nigeria?

Yes, in as much as you are a Nigerian student

Can I get a loan without my BVN number?

it is impossible to receive a loan without BVN

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