Who is eligible and not eligible to apply for Student Loan Bill signed by President Tinubu? Fox Nigeria reports that Nigerian students, parents and guardians got so excited when President Bola Ahmed Tinubu signed the interest-free student loans bill into law on the 12th of June 2023.
As a matter of fact it was a wonderful news that most Nigerians has been waiting for as it's part of the promises Nigeria's President, Bola Ahmed Tinubu made during his campaign.
On the surface, it looks like a good initiative but defaulters will be at risk of serving 2 years jail time or N500,000 or both for students who fail to repay the loan or anyone found aiding defaulters.
Defaulters risking jail time might sound scary but will it stop Nigerian students from taking these loans?
Who is Eligibility for Student Loan?
To be eligible for the student loan, student applicants need to follow a specific application process. They must submit their loan applications through their respective institutions to the Chairman of the Bank, fulfilling certain conditions.
Additionally, students must have gained admission into recognized Nigerian institutions, including universities, polytechnics, colleges of education, or vocational schools established by the Federal Government or any State Government.
There is an income limit that student applicants or their families should adhere to. Their annual income should not exceed N500,000 (five hundred thousand naira).
Furthermore, each student applicant is required to provide a minimum of two guarantors who meet specific criteria. These criteria encompass being a civil servant of level 12 or above, a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of Peace.
These requirements ensure a standardized and structured approach to the loan application process, enabling deserving students with limited financial means to access the necessary financial support for their education.
Who Ineligibility for Student Loan?
To maintain the integrity of the loan program and allocate funds to deserving students, certain disqualification criteria have been established:
- Previous Loan Default: Students who have previously defaulted on any loan provided by any organization will not be eligible for the loan. This criterion ensures that students who have failed to fulfill their previous loan obligations are not granted additional financial assistance.
- Exam Malpractice: Students found guilty of exam malpractice by school authorities will be disqualified from receiving the loan. This measure emphasizes the importance of academic integrity and discourages fraudulent practices during examinations.
- Conviction of Felony or Offenses of Dishonesty or Fraud: Students with a criminal record of felony or offenses involving dishonesty or fraud will not be eligible for the loan. By excluding individuals convicted of such offenses, the loan program aims to maintain a trustworthy and responsible student body.
- Drug Offenses: Students with convictions related to drug offenses will be disqualified from accessing the loan. This criterion seeks to promote a safe and drug-free learning environment while encouraging responsible behavior among students.
- Parental Loan Default: If any of the student's parents have defaulted on a student loan or any other loan granted to them, the student will not be eligible for the loan. This criterion prevents students from benefiting from the loan program when their family members have failed to meet their financial obligations.
These disqualification criteria uphold ethical standards and ensure that the loan program supports deserving students who are genuinely committed to their academic pursuits. By implementing these measures, the program aims to maintain a high level of integrity and provide financial assistance to students who demonstrate a strong dedication to their studies.
