President Bola Tinubu on Monday, June 12, signed the Students Loan Bill into law.
The new act provides an interest-free loan for indigent students in which beneficiaries will only pay back the exact amount they collect.
The act will establish the Nigerian Education Bank, which will supervise, coordinate, administer and monitor the management of student loans in Nigeria.
Only students studying in higher institutions within Nigeria are eligible for the loan and it’s for the payment of tuition fees alone.
The repayment of the loan will begin two years after the National Youth Service Corps Scheme is completed and defaulters, or anyone aiding them shall be liable, upon conviction, to two years imprisonment, or a fine of N500,000 or both.
Meanwhile, a student can be disqualified if they or their parents have defaulted of any loan in the past, or they (student) have been convicted of drug related offences or any felony involving dishonesty or fraud, or they if the student has been found guilty of exam malpractices by any school authority.
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