Do You Need A Student Loan? Check Out The Eligibility, Benefits, Requirements And More. Learn How To Apply In This Post.
How To Get Student Loan In Nigeria: It can be really hard trying to fund your higher institution education. Many people are looking for means to take loans in order to get this sorted out. If this is your situation, we have you covered. In this article, we have all the answers to your questions that concerns student loan in Nigeria.
On 12th June 2023, the president of the federal republic of Nigeria President Bola Ahmed Tinubu signed the student loan (Access to higher education) bill into law. This loan would allow students that have gotten admission into any public high institution of learning to be able to apply foe an interest free student loan. From that time until now, people have been asking for more details about the student loan which we have included in this article. Let’s look at the eligibility for the student loan in Nigeria.
Eligibility For Student Loan In Nigeria
Here are the qualifications you need to meet before you are able to apply for student loan in Nigeria:
- You must have gained admission into any Public Nigerian university, polytechnic, college of education, or any TVET school.
- Your annual family or personal income must be less than 500,000 NGN
- You must provide at least two civil servants as guarantors, who should be at least level 12 officers with a minimum of 10 years of service.
- If you cannot get civil servants as guarantors, a lawyer with 10 years post call experience, a judicial officer, or a justice of peace can also act as a guarantor
- You would not be considered for the student loan if you have defaulted on previous loans or have been guilty of examination malpractice, felony or drug offences.
- Students whose parents have defaulted on previous loans will also not be considered.
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Benefits Of Student Loan In Nigeria
1. Flexible Repayment Time
One of the benefits of taking the student loan in Nigeria is that it has a very flexible repayment time. Beneficiaries are supposed to start repayment two years after youth service, this gives them enough time to be able to get a job or start a business.
2. No Child Left Behind
Student loan allows every student to be able to access higher education no matter the standard of living of a family. Now, you can fund your education whether or not your family is able to help you.
3. Improve One’s Career
Another benefit of student loan in Nigeria is the fact that it gives one the opportunity to be able to improve one’s career. Hence, you do not have anything stopping you from furthering your education.
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Requirements For Students Loan In Nigeria
There are things you need before you can be able to apply for student loan in Nigeria. Here are the requirements for student loan in Nigeria:
- You would be required to submit applications to the chairperson of the CBN governor headed committee through their respective banks
- You would need a cover letter signed by the head of your institution (vice chancellors for university students, rector for polytechnic students and provost for students of colleges of education) and students’ affairs officer of the institution
- A copy of your admission letter
- At least two guarantor letters addressed to the chairperson of the committee
- Two passport photographs from each of the guarantors, their employer as well as evidence of employment. If the guarantor is self-employed, the business registration with the corporate affairs commission (CAC) or any other appropriate authority and their bankers will always be required.
How Long Would It Take For my Application To Be Considered?
The committee will communicate to the applicant on the status of his application within 14 days of the receipt of any application.
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How To Pay Back Student Loan In Nigeria
Getting a loan means that you have to pay back the money and the same goes for the student loan in Nigeria. According to the student loan act, repayment of the loan begins two years after completing the National Youth service corps program (NYSC).
The repayment of the student loan is gotten by reduction of 10% of the beneficiary’s salary at the source by the employer. However, if you are a business owner, you would need to remit 10% of your total monthly profit to the particular student loan account you have been assigned to by the bank till you have finally completed the loan.
What Would Happen If I Do Not Pay Back The Student Loan I Took?
Every action has it own consequence and so there are consequences attached to not repaying the student loan that one took. You can be imprisoned for a period of two years or be given a fine of 500,000 NGN or even both. Therefore, it is advised that you do not default in repaying your student loan.
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Frequently Asked Questions
1. Who Qualifies Fir Student Loan In Nigeria?
The applicant whose income or family income is not more than 500,000 NGN
2. Can A Student Borrow Money From LAPO?
Yes, but it comes with high interest rate.
3. What Is The Maximum Student Loan Amount In Nigeria?
10 million naira
4. Can A Student Get Loan from Bank In Nigeria?
Yes, there are some banks that give loans to students in Nigeria.
5. What is First Edu Loan?
This loan is available to private school owners that need extra funds for the smooth running of their school operations.
Thanks to the government, students are now being able to take loans to fund their education while it does not attract interest. The repayment term is quite great because it gives the young graduate time to be able to get settled and start paying the loan after he or she must have gotten a job.
Do you think the student loan was a good idea? Let us know your opinion about this in the comment section below. I hope this article was very helpful to you. Cheers!