Federal Government Student Loans in Nigeria – Are you a Nigerian student from a Nigerian university, having difficulties with funding your education? whichever level you find yourself, the federal government student loan is here for youGracias, because lack of funding is no longer an excuse for not reaching the climax of education in Nigeria.
Whatever level you are which is stipulated in the requirement we are going to be discoing today you can now make applications and if you meet the requirement be selected for the loans.
The federal government student loan is in accordance with the bill that has just been passed into law by the president of the federal republic of Nigeria.
The Federal Government of Nigeria in its new administration headed by Bola Ahmed Tinibu who was sworn into office on the 29th of May 2023 passed a bill into law in order to enhance the educational system of Nigerian students.
The federal government which is an embodiment of the executive, legislature, and judiciary with its national headquarters at the Aso presidential villa approved this bill into law.
The executive branch of the government which is made up of the president, the legislative branch which is the national assembly and the judicial branch which is made up of the Supreme Court have started working in line to ensure the implementation of this law as well as punishing offenders
In this particular article, we will be focusing on the student loan of the federal government of Nigeria. The application process, requirements for application, and eligibility.
Importance of the Federal Government Student Loans in Nigeria
A student loan is a loan that is set by the federal government and disbursed to students of public universities with the sole aim of
- Replacing and repealing the Nigerian education bank acts of 1993
- Establishing a Nigerian education fund.
Federal Government Student Loans in Nigeria | See Requirements and How to Apply
In line with the bill that has just been signed into law, the requirements and eligibility for student loan includes
- Must be a citizen of Nigeria
- Must be a student of an accredited university, polytechnic, or tertiary institution with proof
- Applicants must have a family income or personal income of not less than 500,000 naira
- Candidates should provide at leas5t two (2) civil servants as guarantors who are not less than level 12 in civil service, or a lawyer with a minimum of 10 years post-call experience, a judicial officer, or a justice of the peace.
- Any student, candidate, or applicant who has defaulted on any previous loans or was found guilty of examination malpractice, felony, or drug offenses is not eligible to apply for the loan
- Any students whose parents have defaulted on any previous loan are not eligible to apply.,
- Applications that are filled will be submitted directly through the student affairs commission of the institution through a list of the qualified applicants from the institution which is going to be accompanied by a cover letter that is signed by the vice chancellor or rector or the head of the institution’s student affairs commission.
- All beneficiaries of this loan will have to begin repayment in two (2) years after completing their national youth service corps program.
- The repayment shall be directly ducted from the applicant’s salary from the source which is the employer
- The deduction is 10%
- In cases where the beneficiary is self-employed, he will always refund 10 % of his total profit monthly to the student loan account that is given to the bank
The student loan application process will begin in September 2023.
Cost of the Nigerian Student Loan
The loan covers the tuition fees of different students for the different departments who applied till he or she has graduated from the University or any form of tertiary institution
Source of the Loan
- Education bonds
- Education endowment fund schemes
- 1%of taxes from the FIRS, Customs, and Immigration
- 1% of the government profits from oils and minerals.
- The loan is managed, financed, and disbursed according to the following
- The loan is domiciled with the central bank of Nigeria.
- The loan is managed and administered by the central bank of Nigeria
- The loan is disbursed by the central bank of Nigeria through the deposit banks of the school.
The process of loan/repayment
- The loan is disbursed within 30 days of chair receipts
- Students start the repayment of the loan about two (2) years of national youth service corps
- The repayment is done by a 10% salary deduction or the SME profit.
- Defaulter is two years imprisonment or a fine of 500 thousand
This article covers the FGN Loan for students from all departments and faculties. This loan is an interest-free loan that is applicable to only students of public universities.
The loan is given to students who are eligible, this article covers the requirements and eligibility of the loan. It covers the source, application date, mode of repayment, cost of the loans, default interest, etc.
This article is recommended to students and guardians of different public universities.
Frequently Asked Questions
How is the application process?
After you have met the eligibility and have the requirements requested, you are to apply to the student affairs committee of the University
When is the application starting?
The student loan application which has been passed into law application starts on September 2023
What is the interest rate of the student loan?
The loan is a free-interest loan
How long can a student be covered by the loan?
The loan is applicable to students from
What are the eligibility requirements for this loan?
- Proof of school enrolment
- Personal or guardian income of 500,000 per year
- A minimum of two guarantors
When is the repayment date for the loan?
The repayment date is two years after you are done with your national youth service
What are the defaulting rules?
Fine of 500,000 naira
At what level can a student apply for the loan?
Form your 100 lever or you can call it year one.
Which financial institution manages the loan?
The central bank of Nigeria
How is the loan disbursed?
The loan is disbursed through domestic accounts and is being paid directly to the applicant’s school account
What and what does the student loan cover?
It covers just your tuition fees for the period of your academics
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