The Student Loan Act is a government initiative designed to provide funding for Nigerian students to access interest-free loans for their higher education. In this article, we will provide a step-by-step guide on how to apply for student loan in Nigeria.
On Monday, June 12, 2023, President Bola Ahmed Tinubu took a significant step by signing the Student Loan Bill into law, ensuring that Nigerian students have access to interest-free loans to support their tertiary education.
If you’re a student enrolled in any public tertiary institution in Nigeria or have recently been admitted to one and find yourself in need of financial assistance to cover tuition, accommodation, or other expenses, you need to know how to apply for student loan in Nigeria.
In this article, we will guide you on how to apply for student loan in Nigeria. We will also discuss the requirements for the student loan, the documents needed, how much you can get, and explain the repayment process for the student loan as stated in the Student Loan Act 2023.
How to Apply for Student Loan in Nigeria
Applying for your interest-free student loan is straightforward. The following steps will guide you on how to apply for student loan in Nigeria:
- Step 1: Download the application form from the official website of the Central Bank of Nigeria.
- Step 2: Complete and submit your application to the chairperson of the CBN-governor-headed committee through their respective banks.
- Step 3: Your application should be accompanied by the following documents:
- a letter by the guarantors addressed to the Chairman of the Committee established under this Act recommending the student for the loan and stating that he accepts liability in the event of default;
- A cover letter signed by the head of your institution (e.g., vice-chancellors for university students, rectors for polytechnic students, and provosts for students of colleges of education).
- A copy of your admission letter.
- A letter from each guarantor addressed to the Chairman of the Committee recommending you for the student loan and stating that the guarantor accepts liability if you fail to repay your loan.
- Include two passport photographs from each guarantor.
- Name of employer and evidence of employment of each guarantor (For self-employed guarantors, you can include their business registration with the Corporate Affairs Commission (CAC) or any other appropriate authority, as well as their banking information).
- Step 4: Submit your application.
When you submit your application form, you can expect to receive your loan decision from the Committee after 14 days.
Eligibility Criteria for Applying for Student Loan
According to Section 15 of the Student Loan Act, to qualify for the student loan in Nigeria, you must meet the following eligibility requirements:
- You must have secured admission into a Nigerian university, polytechnic, college of education, or vocational school that is established by the Federal Government or the Government of any state of the federation.
- Your family income must be less than N500,000 per annum
- You must provide at least two guarantors and each guarantor must be:
- A Civil servant with not less than level 12 years in service
- A lawyer with at least 10 years post-call experience
- A Judicial officer
- A Justice of Peace
Note that you will be disqualified from accessing the loan if:
- You have defaulted in any previous loan granted by any organisation
- You have been found guilty of exam malpractice by any school authority
- You have been convicted of a felony or any offence involving dishonesty or fraud
- You have been convicted of drug offences
- Any of your parents have defaulted in respect of student loans or any loan granted to the person
Required Documents for Student Loan in Nigeria
In addition to the above requirements, you may be asked to submit the following documents to the Student Affairs Office of your institution:
- A completed application form
- A copy of your WAEC/NECO result certificate
- A copy of your birth certificate
- A copy of your National Identification Number (NIN)
- A copy of your JAMB result slip
- A copy of your passport photograph
The Student Affairs Office of your institution will then review your application and make a recommendation to the Central Bank of Nigeria (CBN).
How Will You Repay The Student Loan?
According to Section 18 of the Student Loan Act, if you qualify for the student loan and receive the funds, here’s what you need to know about repayment:
- You start repaying the loan two years after finishing your National Youth Service Corps (NYSC) program.
- Your employer will deduct 10% of your salary and send it directly to the loan fund.
- If you change jobs, you must tell the Committee Chair within 30 days of starting your new job and provide details.
- If you’re self-employed, you must send 10% of your total monthly profit to the fund.
- If you become self-employed, you have 60 days to give the Committee all your business info, like name, address, registration documents, and banking details.
However, it is important to note that if you don’t follow these rules or help someone else not follow them, you could be fined N500,000, go to jail for two years, or both.
Other Loans for Students in Nigeria
The following are other student loans in Nigeria that you can consider:
1. Access Bank Student Loan
The Access Bank loans for students in Nigeria provide short-term financing specifically for covering tuition fees and ensuring uninterrupted education for students. You can get loan amounts of up to ₦5 million, with an option to refinance the loan.
Requirements:
- Completed application form
- Admission letter
- Tuition advice
- Letter of domiciliation of salary account (applicant or sponsor)
- Copy of employment ID or valid identification
- Bank Verification Number (BVN)
2. GTBank Student Loan
GT Bank’s school fees advance offers financing for school fees within Nigeria. You can get loan amounts of up to ₦5 million with a maximum tenure of 4 months per request.
With GTBank student loan, you can get competitive interest rates and immediate access to the loan.
Requirements:
- Completed application form and employer undertaking form
- School fees bill and credit insurance
- Domiciliation of staff terminal benefit in GTBank or obtain Corporate Guarantee
3. First Bank FirstEdu Loan
First Bank’s FirstEdu is an educational loan in Nigeria targeted at school proprietors, providing flexible funding for upgrading facilities and bridging funding gaps.
You can get a flexible repayment plan spread over 90 days and access to a maximum amount of ₦10 million.
Requirements:
- Domiciliation of school fees with First Bank
- The school must have an account relationship with FirstBank for at least 6 months (or 12 months with other banks)
- Must be a private school registered with CAC and their State Government
- Minimum school population of 100 students
4. Lapo Micro Finance Bank Student Loan
Lapo Micro Finance Bank Loan offers this loan for students in Nigeria to enhance the quality of education of Nigerian students.
This loan supports parents in meeting the various educational expenses for their children and also supports owners of educational institutions in enhancing their facilities. However, this loan can only be accessed by a client who is a member of a group (Union).
Conclusion
In these challenging times, many Nigerian students struggle to fund their educational pursuits. The Federal government, under President Bola Ahmed Tinubu’s leadership, has taken a crucial step by passing the Student Loan Bill, aiming to ensure that every Nigerian student receives the necessary funding to cover their educational expenses.
Now that you’re equipped with the knowledge of how to apply for a student loan in Nigeria, it’s essential to carefully understand the requirements, necessary documents, and the repayment process. Make sure you’re fully aware of all the factors involved before proceeding with your student loan application.