"Fine N500K": FG Bans Five Categories of People from Newly Signed Student Loan
- Nigerian President Bola Tinubu has fulfilled one of his campaign promises by signing the Student Loan Bill into law
- The funds for the loans will be managed by the Ministry of Education and accessible only to needy students enrolled in tertiary institution
- The Student Loan law includes penalties for defaulters, such as imprisonment and fines, to encourage loan repayment
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Nigerian President Bola Tinubu officially signed the Student Loan Bill into law, marking a significant milestone in tackling the financial barriers students face seeking quality education.
Under the newly enacted law, Nigerian students would have access to interest-free loans to support their educational pursuits, Punch reports.
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The Ministry of Education will administer the funds for the loans and exclusively benefit disadvantaged students enrolled in tertiary institutions nationwide.
Details on the new student loan
Dele Alake, the spokesperson of President Tinubu, stated that the primary objective of the bill is to provide a pathway to higher education for financially disadvantaged Nigerians through the Nigerian Education Loan Fund.
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Eligible students must demonstrate evidence of indigence to qualify for the loans.
To ensure the efficient disbursement of loans and oversight of the initiative, a committee comprising representatives from various education stakeholders will be established.
Categories of students not qualified for the loan
However, specific categories of individuals have been deemed ineligible for the loans, as highlighted by Tribune.
1. Applicant proved to have defaulted in respect of any previous loan granted by any organisation.
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Nigerian undergraduates react after President Bola Tinubu signed student loan bill into law
2. Applicant found guilty of exam malpractice by any school authority.
3. Applicant with a criminal record of felony or any offence involving dishonesty or fraud.
4. Anyone who has been convicted of drug offences
5. Applicants whose parents (father or mother) have defaulted on student loans or any loan granted to him or her.
Penalties for defaulting on student loan
The Student Loan Bill also includes penalties for defaulters to encourage loan repayment.
Students who fail to repay their loans may face up to two years of imprisonment, a fine of N500,000, or both.
"Get up to N10m": Access, Zenith, UBA other banks offering huge student loans
Meanwhile, in another report, Access Bank and Zenith Bank are at the forefront of providing student loans with substantial maximum limits.
The loans amount ranges from N20,000 to up to N10 million, with clear repayment plans
The availability of student loans from multiple banks provides Nigerian students with greater choices and flexibility in financing their education.
Source: Legit.ng
