President Bola Tinubu has signed into law the Student Loan Bill in fulfilment of a promise he made during his campaign.
This was announced on Monday by the spokesperson to the Federal Government Mister Dele Alake, saying that the funds will be domiciled in the Ministry of Education and will only be accessed by indigent students of tertiary institutions.
The student loan bill sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, which provides for interest-free loans to indigent Nigerian students, passed the third reading at the House, two weeks ago.
The law is to provide easy access to higher education for indigent Nigerians through interest-free loans from the Nigerian Education Loan Fund.
Following the passage by the House and assent by President Tinubu, here are seven things to know about the Student Loan Act:
- The new act will establish the Nigerian Education Bank, which will supervise, coordinate, administer and monitor the management of student loans in Nigeria.
- Applicants will go through screening to determine whether they meet the requirements for the loan.
- Students in all the higher institutions are eligible for the loan.
- It provides funds for all education-related matters, including textbooks, and research.
- It is only accessible to students studying in Nigeria.
- There will be jail terms for student loan defaulters.
- The repayment of the loan will begin two years after the National Youth Service Corps Scheme is completed.