President Bola Ahmed Tinubu signed the Student’s Loan Bill into law, which seeks to provide financial solution to Nigerian Students for the purpose of Tertiary Education.
Here are few things you need to know about the bill:
Purpose Of The Loan
The loan can be accessed for the purpose of paying school fees, accommodation, textbooks, research, education materials or any other purpose that’s justified by the institutions. The amount will differ from student to student and department to department. Technical Courses will require more funding than non-technical.
Students applying for the loan must:
1. Have secured an admission into any Tertiary Institution (Federal or State Universities, Polytechnics, Collages of Education, or any other Tertiary Institutions)
2. Come from a family with an annual income of less than N500,000.
3. Provide at least 2 guarantors (Civil Servant above Level 12 or Lawyer with at least 10 years post-call experience)
Students are disqualified from applying if;
1. They have defaulted in any loan before (go to your banks and check your credit history ooh before you come online and be insulting government on top of loan you refused to pay from Kuda, Palmpay or NIRSAL)
2. They have proven case of exam malpractice
3. They have ever been convicted for any offense of dishonesty or fraud (yahoo boys una weldon ooh)
4. They have ever been convicted of drug abuse
5. Their parents defaulted on any loan before (ask your parents to also check their credit history)
Method Of Application
Applications will be submitted to the Students Affairs Offices of the respective institutions alongside relevant documents and qualified applications will be forwarded officially by the institution to the Chairman of the Education Bank in their territory.
What Is Education Bank Again?
The Student Loan Bill will also establish an Education Bank with the purpose of facilitating the mobilization of funds to provide the students loan and also ensure constant supply of the loans to Nigerians for better Tertiary Education in Nigeria. The Bank will start with a share capital of N1billion at N1/share with FG holding 100% of the shares.
Source Of Funds For The Bank
The bill also establishs a Fund called “Students Loan Fund” which will serve as the fund in the bank to be accessible by students. All monies or any contributions to the fund will be managed by the education bank. The fund will get supply from the following sources:
1. Education Bonds
2. All interests arising from deposits of the bank
3. Education endowment fund schems
4. 1% of taxes, levels, and duties to FG through FIRS, NIS and Customs.
5. 1% of profits from Oil and Other Natural Resources.
6. Grants, Gifts, and any other endowments.
By the signing of the bill today, legally all profits and taxes due to the fund under the bill will start counting.
Disbursement And Repayment
The Loan application will be forwarded to the Minister of Education for approval within 30 days of submission to the Bank. And disbursement will be made immediately after Minister’s approval.
The loan repayment will start 2 years after NYSC. Payments will be 10% direct deductions from beneficiaries’ salary account. If for example you are working with INGAWA Nig Limited, and your salary is N100k. Then Ingawa Nigeria Limited will be deducting N10k and remit same on your behalf to the Education Bank being repayment for your loan.
Self employed graduates will have only 60 days to document their income for deductions. They will also remit 10% of their monthly profits or face penalty. The bill did not provide assumption of not getting a job or self employment after 2 years when we have graduates of 5-10years without jobs. Even though that’s a way of pushing them to be self employed and produce for the nation.
Whoever benefits and refuses to pay back for his younger ones to benefit is liable to 2 years imprisonment or a fine of N500,000.