FG Student Loan News: President Bola Tinubu Sets Wheels in Motion for Student Loans
- President Bola Tinubu sanctions Student Loan Bill to promote higher education accessibility in Nigeria.
- The Federal Government declares student loans will be disbursed from September to October 2023.
- The Student Loan Bill forms a new bank, the Higher Education Nigerian Bank, to administer these loans efficiently.
Updated Info on FG Student Loan Approval and Disbursement: June 30, 2023
On June 30th, 2023, important information regarding the FG Student Loan Approval and Disbursement was made available. President Bola Tinubu, in a noteworthy step, authorized the Access to Higher Education Bill, also known as the Student Loan Bill.
This was on June 12th, with Femi Gbajabiamila, the Speaker of the House of Representatives and Chief of Staff to the incoming President, as the bill’s sponsor. The bill passed the Legislative successfully in May 2023.
The main aim of this law is to make it easier for Nigerians to reach higher education.
The Federal Government has unveiled the expected dates for giving out student loans.
They should start between September and October 2023. The Federal Ministry of Education’s Permanent Secretary, David Adejo, shared these details in Abuja during a chat on the new Student Loan Act.
The Higher Education Nigerian Bank
The Student Loan Bill leads to the creation of a new bank, the Higher Education Nigerian Bank.
This bank, unlike previous methods, will focus not only on collecting loans but also on standard banking functions.
This will ensure efficient loan giving. It’s a strategy to solve past problems tied to loan recovery.
A Committee for Implementation
As a part of the process of making this law real, the President has approved a committee made up of ministries and agencies.
A meeting has been set for June 20. President Tinubu has given the instruction that the people getting these loans should be known by September to October of the ongoing school period (2023–2024).
This shows the administration’s promise to speed up the loan giving process. It highlights the importance of getting funds on time for students who want to further their education.
Eight Important Points about the New Student Loan Law
Here are eight important things about the new student loan law in Nigeria:
- To apply, all students must go through the Bank’s Chairman and the Student Affairs Office of their schools. This includes universities, colleges of education, polytechnics, or vocational schools set up by the Federal Government or any State Government.
- The income of the applicant or their family should be less than N500,000 each year.
- Every applicant must have two people who can vouch for them. These people must meet certain conditions. For instance, they could be a civil servant with at least 12 years of work, a lawyer with at least 10 years post-call experience, a judicial officer, or a Justice of Peace.
- Students can be denied if they or their parents have failed to pay back any past loans, have been found guilty of drug-related crimes or dishonesty crimes or fraud, or have been found guilty of exam cheating by any school authority.
President Tinubu signing the Student Loan Bill matches his promise to change the education system in Nigeria.
He aims to find new ways to fund higher education. By giving universities the power to handle their own finances, his administration hopes to find new sources of money.
These sources could be grants, sponsorship from companies, and tuition fees.
The goal is to stop the regular strikes by the Academic Staff Union of Universities (ASUU) due to lack of funds.
said, “I will start a new creative way of funding higher education by allowing universities to handle their own finances. They can find new sources of money through grants, sponsorship from companies, tuition fees, etc.”** He stressed the need for everyone involved in higher education to work together. This includes students, parents, the academic community, relevant unions, and the government.
Keep an eye out for more news on student loan approval and disbursement. For more news, visit VoiceofNigeria, and don’t forget to check back tomorrow for the newest info.