President Bola Tinubu on Monday signed into law Students’ Loan Act that guaranteed access to funds by students of tertiary institutions. Here are 10 highlights of the Act.
1. The Act was sponsored by Femi Gbajabiamila and it was passed by both Chambers of the National Assembly in 2019.
2. The Act seeks to provide interest-free loans to students of tertiary institutions in Nigeria. It shall cover only tuition fees in public institutions of learning in Nigeria.
3. The Act calls for establishment of a bank to be referred to as Nigerian Education Bank. The bank shall implement the provisions of the Act.
4. The Board of the Bank shall be headed by a Professor or a retired Vice Chancellor of a Public University in Nigeria.
5. Applications by students shall be made through their institutions.
6. Payment of the loans shall commence when the student has graduated, served and started working.
7. Processing of application shall be within 30 days it reaches the Bank.
8. Repayment shall be direct deduction of 10% of the beneficiary salary direct by the employer or credited into an account to be provided by the Bank.
9. The Bank directly reports to the President at the end of every year.
10. Applicant’s income or family income must be less than N500,000 per annum.
