Tinubu signs Students Loan Bill into law

President Bola Tinubu has signed the Students Loans Bill into Law, which was part of his campaigns promises.

The law would allow indigent students in tertiary institutions to access a Federal Government loan for the duration of their studies.

Dele Alake, disclosed this on Monday at the end of the signing at the Presidential Villa, Abuja.

Alake said the bill would boost the educational  pursuit of the youths across the country, adding that to enjoy the facility,  students must show evidence of being indigent.

He said that a committee drawn from all the relevant educational stakeholders would be set up to handle the process of an efficient disbursement of the loans.

Alake said that a percentage of the revenue of the Federation would be used to finance the new initiative.

Permanent Secretary in the Ministry of Education, Andrew Adejo,  said  the bill would rest the case of lack of fund hindering indigents educational pursuit.

He said the signing of the bill signified how the Tinubu administration intended to handle the issue of qualitative and quantitative education in its period.

Adejo said the ministry already had experience in students financial dealings through the student scholarship boards scheme.

He added that the country’s handling of loans recovery in various projects would also come handy in the recouping of loans.

He added that the interest free loan would be disbursed based on the students number of years of study and ability to pay back.

The permanent secretary said  the media should assist in disseminating information on the issue of funding of education in the country.

He said the states should march the financial and technical support of the Federal Government in order to give Nigerians good education.

Part of the steps to enjoy the loan include:

Students applying for loan under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions:
(i) Student must have secured admission into any public Nigerian University,Polytechnic, COE or TVET school

Applicant income or family income must be less than N500,000 per annum;Applicant must provide at least two civil servants as guarantors: of not less than level 12 years in service; or a Lawyer with at least 10 years post-call experience; a Judicial officer; or a Justice of Peace.

Students who have defaulted in previous loans; found guilty of exam malpractices, felony, drug offenses will not be considered.

Students with parents who have defaulted in respect of previous loans will not be considered.

All Applications will be submitted through the Students Affairs Office of each Institution via a list of all qualified applicants from the institution accompanied by a cover letter signed by the Vice Chancellor or Rector or the head of the institution and the student affairs.

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 source by the empioyer.

Where the beneficiary is self employed, he shall remit 10% of his total profit monthly to the Students loan account to be prescribed by the Bank.