President Tinubu signs the student loan bill into law which seeks to provide financial solutions to Nigerian Students for the purpose of Tertiary Education.
Here are a 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 admission into any Tertiary Institution (Federal or State Universities, Polytechnics, Colleges 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 a Lawyer with at least 10 years post-call experience)
Students are disqualified from applying if;
1. They have defaulted on any loan before (go to your banks and check your credit history ooh before you come online and be insulting the government on top of a loan you refused to pay from Kuda, Palmpay or NIRSAL)
2. They have proven cases of exam malpractice
3. They have ever been convicted of any offence 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)
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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 student loan and also ensure a constant supply of loans to Nigerians for better Tertiary Education in Nigeria. The Bank will start with a share capital of N1 billion at N1/share with FG holding 100% of the shares.
SOURCE OF FUNDS FOR THE BANK
The bill also establishes a Fund called “Students Loan Fund” which will serve as a fund in the bank to be accessible to 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 schemes
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 accounts. If for example, you are working with INGAWA Nig Limited and your salary is N100k. Then Ingawa Nigeria Limited will be deducting N10k and remitting the same on your behalf to the Education Bank being repayment for your loan.