5 Categories of People Cannot Apply For Student Loan
The FG prohibits five categories of people from newly signed student loans with a fine of N500K.
By enacting the Student Loan Bill into law, Nigerian President Bola Tinubu has kept a campaign pledge.
Student Loan: Only poor students enrolled in tertiary institutions will be able to access the cash for the loans, which will be controlled by the Ministry of Education.
To encourage debt repayment, the Student Debt Law includes penalties for defaulters such as jail and fines.
President Bola Tinubu of Nigeria has signed the Student Loan Bill into law, marking a significant step toward removing the financial obstacles that students must overcome to pursue a high-quality education.
Nigerian students would have access to interest-free loans under the recently passed law to fund their academic endeavors, according to Punch.
The loans will only be given to underprivileged students who are enrolled in tertiary institutions across the country and will be administered by the Ministry of Education.
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Details on the new student loan
The fundamental goal of the bill, according to President Tinubu’s spokesperson Dele Alake, is to give financially disadvantaged Nigerians access to higher education through the Nigerian Education Loan Fund.
To be eligible for the loans, eligible students must present proof of their need.
A committee made up of members from different education stakeholders will be constituted to ensure the timely disbursement of funds and oversight of the program.
Categories of students not qualified for the loan
However, as noted by Tribune, some people have been classified as ineligible for the loans.
- It was established that the applicant had missed payments on any prior loans received from any organization.
- The applicant was determined to have committed exam fraud by a school official.
- Applicants having felony convictions or offenses involving dishonesty or fraud on their records.
- Anyone who has received a drug-related conviction
- Candidates whose parents (father or mother) have missed payments on any loans made to them.
Penalties for defaulting on student loan
To promote loan repayment, the Student Loan Bill also includes sanctions for defaulters.
Additionally, students who don’t pay back their loans could spend up to two years in jail, pay a fine of N500,000, or both.
Multiple banks’ offerings of student loans give Nigerian students more options and flexibility when it comes to paying for their education.