NG Govt Student Loan, Application and Pay Back

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NG Govt Student Loan, Application and Pay Back

Under the leadership of President Bola Ahmed Tinubu, the NG Govt student loan Bill, which was signed into law on June 12, 2023, was created to help Nigerian Students access an Interest-free loan.

This was to help students pay for their education. The bill also stipulated that after graduation, students were given an extra two years to establish themselves financially before they started paying back the loan.

You must meet certain requirements before applying for the NG Govt student loan and know when to start paying it back. The article will help you learn more about these.

Requirements for Application

The signed act stipulated that all interested students must apply to the chairman of their bank  through their institutions after completing the following requirements;

  • Students must have been given admission into any public Nigerian University, Polytechnic, College of Education, or any TVET school.
  • Applicant’s income or Family income must be less than N500,000 per annum.
  • Applicants must provide a guarantor, who must be a Civil servant with at least 12 years of service, a Lawyer with at least 10 years post-call experience, a Judicial officer, or a Justice of Peace.
  • Students who wish to apply must not have defaulted on previous loans and must not have been found guilty of exam malpractice, felony, or drug offences.
  • Applicants whose parents have defaulted in previous loans are not eligible to apply because their application will not be considered.

Also, Check the Federal Government Grant and Loan for Businesses: See the link to apply.

How Much Can I Borrow In The Student Loan?

The Loan Bill, signed by President Bola Ahmed Tinubu, does not specify how much a successful student applicant is expected to borrow. Still, according to an educational expert, “it appears that the loan will be based on the institution, course of study and duration.”

Alternatively, you can read about 3 Banks in Nigeria that Offer Student Loans.

When is the Time for the NG Govt Student Loan Payback?

The NG Govt Student Loan payback is expected to start two years after their graduation; these two years were granted to enable them to be financially stable.

According to the bill, the NG Govt Student loan repayment will be made by deducting 10% of the student’s salary monthly until the loan is completely paid back. For Self-employed students, the government will collect a 10% monthly payback from their total profit.

In collaboration with the employer, the education bank will deduct the required amount from their salary or business profit and repay it to the student loan fund account.

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How to apply

You can get the form for the NG Govt Student loan from the Central Bank of Nigeria (CBN) website. After completing all the requirements, you can submit your application to your institution’s Student Affairs Office.

After the submission, the Vice Chancellor, rector, or Head of the Institution and Student Affairs will sign the list of qualified applicants from their institution and accompany it with a cover letter.

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