Detailed Information About The Federal Government’s Loans To Nigerian Students
The President of Nigeria, Asiwaju Bola Ahmed Tinubu, has implemented a new policy to provide interest-free loans to Nigerian students in high schools who come from low-income families. The following are the key details and requirements for obtaining these loans:
1. Qualification: Before being eligible for the loan, students must secure admission to a state or federal high school, which can include universities, colleges of science and technology, colleges of education, or vocational schools.
2. Loan Purpose: The loan is specifically intended to cover school fees.
3. Income Criteria: The annual income of the student or their parents must be less than 500 thousand naira.
4. Sponsorship: The student must provide sponsors who are government employees with at least 12 years of service. Alternatively, a student can introduce a lawyer with a minimum of 10 years of experience or another legal worker.
5. Non-Government Schools: Students attending non-government schools are not eligible for this loan.
6. Non-Discrimination: The loan program does not discriminate based on gender, religion, or any other disability.
List of Students Ineligible for Loans:
1. Previous Education Bank Borrowers: Students who have borrowed from the Education Bank in the past and failed to repay the loan.
2. Guilty of Dishonesty or Fraud: Students who have been found guilty of dishonesty or fraud by any school or court.
3. Drug-Related Offenses: Students who have been arrested for drug-related crimes.
4. Parental Loan Repayment: If a student’s parents have not repaid a loan previously granted to them for the student’s education.
Repayment Process:
The Education Bank is responsible for monitoring loan recipients and ensuring timely repayment. The following are the repayment terms:
1. Loan Repayment Start: Loan repayment begins two years after the completion of the National Service (NYSC).
2. Salary Deduction: If employed, 8-10 percent of the student’s salary will be deducted and deposited into the loan account.
3. Self-Employed Individuals: If self-employed, 10 percent of the monthly profit should be paid directly to the bank. Sixty days after becoming self-employed, the student must provide information about their business or work, including bank details, residential address, business partners, shareholders, and other relevant information.
Legal Consequences:
Failure to repay the loan can result in the following penalties:
– Imprisonment: A potential sentence of two years in prison.
– Fine: A fine of 500 thousand naira.
– Combination: A combination of imprisonment and a fine.
Laws Governing the Loan Program:
1. Establishment of the Education Bank: The Education Bank of Nigeria will be established to oversee and implement the provision of education loans.
2. Loan Application Process: Students can apply for the loan through their schools, which will forward the applications.
3. Eligibility Assessment: Each student’s eligibility for the loan will be assessed.
4. Exclusions: The loan program does not apply to students studying outside of Nigeria or attending non-government schools.