How to Apply for Student Loan in Nigeria: Step by Step

The signing of the Student Loan Bill into law (on June 12, 2023) by President Bola Tinubu has paved the way for Nigerian students to have access to interest-free loans.

This landmark legislation aims to bridge the funding gap in tertiary institutions and make higher education more accessible.

In this article, we will guide you through the step-by-step process of applying for a student loan in Nigeria, highlighting the eligibility criteria and necessary documentation.

Table of Contents

Application Requirements for Student Loan in Nigeria

JAMB Registration Number
Bank Verification Number (BVN)
National Identification Number (NIN)
Matriculation Number

How to Qualify and Apply for a Student Loan in Nigeria

Step 1: Secure Admission into a Public Nigerian Institution

To be eligible for a student loan, you must first secure admission into a public Nigerian university, polytechnic, college of education, or any TVET school. This ensures that the loan is available to students pursuing higher education in recognized institutions.

Step 2: Meet the Eligibility Conditions

Once you have secured admission, you need to satisfy certain conditions outlined by the Student Loan Act. These conditions include the following:

Your annual income or family income must be less than ₦500,000.
You must provide at least two civil servants as guarantors, who should be at least level 12 officers with a minimum of 10 years of service.
Alternatively, a lawyer with 10 years of post-call experience, a judicial officer, or a Justice of Peace can also act as a guarantor.
Applicants who have defaulted on previous loans or have been found guilty of exam malpractice, felony, or drug offences will not be considered.
Students whose parents have defaulted on previous loans will also not be considered.

Step 3: Submit Loan Application through the Students Affairs Office

After meeting the eligibility conditions, you need to submit your loan application through the Students Affairs Office of your institution. The application should be accompanied by a list of all qualified applicants from your institution, along with a cover letter signed by the Vice-Chancellor, Rector, or the head of your institution and the Student Affairs department.

Step 4: Repayment Terms

According to the Student Loan Act, loan repayment begins two years after completing the National Youth Service Corps (NYSC) program. Repayment is facilitated through direct deductions of 10% of the beneficiary’s salary at the source by the employer. If you are self-employed, you are required to remit 10% of your total monthly profit to the designated student loan account prescribed by the bank.

Step 5: Compliance and Consequences

As a loan beneficiary, it is essential to comply with the repayment terms. Failure to adhere to the repayment schedule or aiding in default is considered an offence. If convicted, the penalty can be imprisonment for two years, a fine of ₦500,000, or both.

Conclusion

The Student Loan Act has opened up opportunities for Nigerian students to pursue higher education without the burden of high-interest loans. By following the step-by-step process outlined above and meeting the eligibility criteria, students can apply for and secure interest-free loans to support their educational journey. This significant development will undoubtedly contribute to the advancement of education and the future success of Nigerian students.

FAQs

Who is eligible to apply for a student loan in Nigeria?

Nigerian students who have secured admission into a public Nigerian university, polytechnic, college of education, or TVET school and meet the specified eligibility criteria can apply for a student loan.

What is the maximum income limit for student loan eligibility in Nigeria?

The applicant’s annual or family income must be less than ₦500,000 annually to qualify for a student loan.

Can I apply for a student loan in Nigeria if I have defaulted on previous loans?

No, applicants who have defaulted on previous loans are not eligible for a student loan under the new legislation.

How many guarantors do I need to provide for my Nigerian student loan application?

Applicants must provide at least two civil servants as guarantors who are either level 12 officers with a minimum of 10 years of service or meet the specified professional criteria.

When does the repayment period for the student loan start in Nigeria?

Repayment of the loan begins two years after completing the National Youth Service Corps (NYSC) program.

How is the loan repayment amount calculated for self-employed individuals?

Self-employed individuals are required to remit 10% of their total monthly profit to the designated student loan account prescribed by the bank.

What are the consequences of defaulting on student loan repayment in NIgeria?

Defaulting on student loan repayment is considered an offence and can result in imprisonment for two years, a fine of ₦500,000, or both.

Are private universities and colleges included in the student loan program in Nigeria?

Currently, the student loan program applies to public Nigerian universities, polytechnics, colleges of education, and TVET schools.

Can I apply for a student loan if my parents have defaulted on previous loans?

No, students whose parents have defaulted on previous loans are not eligible for a student loan under the new legislation.

How do I submit my loan application and supporting documents?

Loan applications should be submitted through the Students Affairs Office of your institution.

Can I apply for a student loan if I am pursuing a postgraduate degree?

The new legislation does not specify restrictions on the level of study, so students pursuing postgraduate degrees may be eligible to apply for a student loan.

Is there an application deadline for student loans in Nigeria?

The legislation does not mention a specific application deadline, but it is advisable to check with the designated bank or relevant authorities for any time constraints or updates.

Can I use the student loan to cover expenses other than tuition fees?

The specific usage of the student loan funds is to finance your education and will be paid directly to the institution upon approval of your loan application.

Will I need to provide proof of admission to my chosen institution?

Yes, as part of the application process, you will be required to provide proof of admission to a public Nigerian university, polytechnic, college of education, or TVET school.

How long does the student loan approval process take in Nigeria?

No stipulated duration. The duration of the loan approval process may vary depending on the bank or institution handling the applications.

Can I apply for a student loan in Nigeria if I am already receiving other forms of financial aid or scholarships?

No.

Are international students eligible to apply for a student loan in Nigeria?

No. The new legislation primarily focuses on Nigerian students attending public Nigerian educational institutions.

Can I apply for a student loan in Nigeria if I am enrolled in a distance learning or online program?

The eligibility for student loans regarding distance learning or online programs may depend on the policies set by the bank or education institution. It is advisable to inquire about specific guidelines for these modes of study.

Can I make early repayments on my student loan?

The legislation does not explicitly address early repayments, so it is recommended to clarify this with the lending institution to understand their policies and procedures regarding early loan repayments.