The bill for new student loan policy was signed into law on the 12th of June 2023 by The President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, His Excellency, Asiwaju Bola Ahmed Tinubu, GCFR. The Students Loan Act becomes President Tinubu’s second piece of legislation signed since he assumed office on the 29th of May, 2023.
The bill would enable indigent students to access loans at interest-free rates.
This bill was sponsored by the Speaker of the 9th House of Representatives, Mr. Femi Gbajabiamila and passed the third reading at the House on May 25, 2023.
According to Mr. Alake, who was accompanied by other members of the media team, including Mr. Tunde Rahman and Mr. Abdulaziz Abdulaziz, and the Permanent Secretary, Ministry of Education, Mr. Andrew David Adejoh, the new law mandates prospective beneficiaries to show proof of their origins.
“We’re very happy to announce to you that today the President, His Excellency, Bola Tinubu, signed into law the Student Loans Bill.
“This is a promise made during the presidential campaign by the then candidate, His Excellency Bola Tinubu, that he will bring back the student loans issue onto the front burner.
“And today, that promise he made has been kept. He has just signed that bill into law, which henceforth would allow or enable our indigent students to access Federal Government’s loans to fund the educational pursuit or career,” Mr. Alake said.
The new law provides easy access to higher education for Nigerians through interest free loans through the Nigerian Education Bank with a view to provide education for all Nigerians. According to the act, all students seeking higher education in any public institution of higher learning in Nigeria shall have equal rights to access the loan without any form of discrimination arising from gender, religion, tribe, position or disability of any kind. The Act also stipulates that the loan shall be granted to students only for the payment of tuition fees.
HOW TO ACCESS AND GET THE STUDENT LOAN.
The law of student loan provides interest-free loans to indigent students in Nigeria. The following must be noted before applying the students loan.
• Students must apply to the Chairman of the Education Bank through their respective institutions and an applicant’s income or family income must be less than N500,000 per annum.
• Applicant must provide, at least, two civil servants as guarantors: of not less than 12 years in service.
• An applicant can also provide a lawyer with at least 10 years post-call experience; a judicial officer; or a Justice of Peace as a guarantor too.
• Students who have defaulted on previous loans, or are found guilty of exam malpractices, felony, or drug offenses will not be considered.
• All applications will be submitted through the Students Affairs Office of each Institution via a list of all qualified applicants from the institution accompanied by a cover letter signed by the Vice-Chancellor or Rector or the head of the institution and the student affairs.
HOW TO REPAY THE LOAN.
The Act stipulates that a beneficiary will begin repayment two years after completing the mandatory one-year National Youth Service Corps (NYSC) scheme by having 10% of his/her monthly salary deducted into a designated bank account. Defaulting or aiding to default will attract a fine of N500,000 or two years imprisonment or both.
CHALLENGE OF THE STUDENT LOAN.
• Funding for the scheme will be from one percent levies from the Federal Inland Revenue Service (FIRS), the Nigeria Immigration Service (NIS), and one percent from oil profits, This sounds very vague. The only good news in the Act is the sound of disbursement timeframe: it says application and disbursements are made within 30 days of the application reaching the chairman of the committee. However, that sound is distorted by the inhumane conditions that come with the loan.
• It could be argued that the conditions are designed to discourage would-be applicants. First, for the combined family earnings to be less than N500,000 annually, parents must earn less than N30,000, which is less than the minimum wage. Besides cutting off several would-be beneficiaries, this group cannot get tax receipts (a requirement) to tender, since this low wage cannot be taxed. That is a grave pointer to the plans (or lack of one) the Federal Government has for the masses.
• Another challenge is the list of offenses that disqualify applicants. These automatically disqualify many that are reformed and seek help to get educated and be set on the right part.
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Today's politics 
The new student loan policy is a welcome development by the present administration. But the process in which one can access the loan is really a tasking and difficult one.
Stephen Mariseuri Adams
Tsu/fsms/mc/19/1027
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In my opinion , Nigeria is not ready for students loans with steep conditions rather, President Bola Tinubu should explore other options and review the terms and conditions of this loan if he truly has the interest of millions of indigent youths at heart. One of the things he can do is, no matter how incongruous this sounds, fix refineries. Then take care of electricity. Do these two and just with a spanner or screwdriver the youths will change this country. And for our youths who want to attain tertiary education in these present climes , the government should look at reviving scholarships schemes and giving out grants to those that want to attain either tertiary or other forms of higher education.
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According to the above subject matter, it’s favour some students because those who have the requirements can go for the loan.
(2) the condition are too harsh and the government are the once benefiting the interest.
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The issue of the Students loan policy is a very challenging issue in Nigeria today.
The loan act being implemented has it’s disadvantages which if clearly noticed will see that it’s disadvantage is more than what you even stand to gain from it.
It’s just an attempt to remove “Education Subsidy” without causing an uproar.
The act said “Loan will be given when funds are available. In other terms, you are still at the mercy of the “system”
If you don’t start repaying after 2years of graduation, you will go to jail
Many graduate have not even gone to NYSC in 2years after graduation
The worst part now is: School Fees will go up above the loan amount because Federal Government has announced that they cannot continue to fund University
So if you are reading this, you are not qualified for the Loan.
This loan of a thing is not for the poor man’s child.
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As we all know education is the key to success, the new student loan policy is a nice and good decision taken by president Bola Ahmed Tinubu in order to help the poor but the criteria and procedures for collection of the loan does not favor the poor at all. A poor person cannot meet up with the requirements for the collection of the loan, so I urge the Government to reconsider it since the student loan policy is meant to help the poor.
TSU/FSMS/MC/19/1187
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Tsu/Fcms/Mc/20/2007
Calvin Esther Nyimone
“To help an average man you must come down to their level”
The student loan is definitely a good one but the conditions should be looked upon again to enhance poor masses have access to this general privilege.
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Actually the students loan is a good decision taking by the president of the country to help the less privilege to achieve their dream in educational aspect, but the procedure and steps is something else that the less privilege can’t meet up with, in my opinion I think the government should consider the less privilege by amending the steps and procedure in applying the loan so that everyone should have access to it.
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Tsu/fsms/mc/19/1057
The bill for the students loan policy is a very good and welcomed idea cuz it will help many are who unable and incapable to study. But at the same time the signing of the bill is not the problem here cuz everything with advantage must surely be accompanied with disadvantage, the condition to paying the loan is where the problem lies. We all know the type of country we are, it is a country where a graduate will stay for God knows how many years before getting a job after how many years of trials and struggles. If that is the case then hundreds of graduate will be send to jail for not being able to repay the loan. So Mr. President need to revisit this condition and then change it to a better one.
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