The Federal Government student loan was signed by the president on the 12th of June 2023. The student loan is to provide easy access to higher education for indigent Nigerian through interest-free loans from the Nigerian Education Loan Fund. So, in this article, I will discuss eligibility criteria, how to apply, and the repayment plans.
The purpose of the loan is to enable Nigerian students who are eligible to pay their tuition fees in any Nigerian institution.
FG Students Loans Eligibility
- Applicants must have secured admission into any of the Nigerian universities, polytechnics, colleges of education or any vocational school established by the Federal Government or the Government of any state of the Federation.
- Applicant’s income or family income must be less than N500,000 per annum
- Applicant must provide at least two guarantors and each of the guarantors shall be a
- Civil servant of at least level 12 in the service
- A lawyer with at least 10 years of post-call experience
- Judicial officer, or
- Justice of peace
A student is disqualified from accessing the loan if
- He is proven to have defaulted in respect of any previous loan granted by any organization
- He has be found guilty of exam malpractice by any authority
- He is convicted of a felony or any offence involving dishonesty or fraud
- He has been convicted of drug offences; or
- Any of the parents has defaulted in respect of students loan or any loan granted to the person
How to apply for Federal Government Students Loans
- All applications must be submitted through the applicant’s bank to the chairman of the committee established under this ACT accompanied by a cover letter signed by the vice-chancellor or rector or the head of the institution and the students’ affairs officer of the institution.
- Each application shall be accompanied by
- Copy of the student’s admission letter
- A letter by the guarantors addressed to the Chairman of the Committee established under this ACT recommending the student for the loan and stating that he accepts liability in the event of default
- Two passport photographs from each of the guarantors , name of employer and evidence of being so employed by the named organization
- Particulars of the guarantor’s business registration with the Corporate Affairs Commission or any other appropriate authority and his bankers, where the guarantor is self-employed
The committee shall communicate to the applicant on the status of his application within 14 days of the receipt of any application.
Processing of any applicant’s application and disbursement shall be made within 30 days of the application reaching the Chairman of the Committee.
FG Students Loans Repayment Plan
- Any beneficiary of the loan to which this ACT refers shall commence repayment two years after completion of the National Youth Service Corps programme
- Repayment shall be by direct deduction of 10% of the beneficiaries salary at the source by the employer and credited to the Fund
- Any change in job shall be communicated to the Chairman of the Committee within 30 days of resuming with his new employer with details of the new job
- Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly to the Fund
- A self-employed person shall within 60 days of assuming that status submit all information such as name of business, address and location, registration documents if registered, name of bankers, names of partners, name of directors and shareholders to the committee
- Anyone in default of the or found to be aiding the default commits an offence and is liable on conviction to a fine of N500,000 or imprisonment for a term of two years or both.
Aside from the students loans, there are other undergraduate scholarships in Nigeria that can help you cover your tuition fees and other expenses.
