Jail Terms and 6 Other Facts About ‘The Student Loan Act’ Every Student Should Be Aware of


 To make financing university education more accessible to everyone, Former 9th House of Representatives Speaker Femi Gbajabiamila asked the Education Bank to offer interest-free loans to students in tertiary institutions. 

Gbajabiamila put out the Student Loan Bill in November 2022 and was approved by the legislature in late May this year.

He made the remarks while delivering the 52nd convocation address at the University of Lagos, with the theme; “Building Back Better: Creating a New Framework for Tertiary Education in Nigeria in the Twenty-First Century.”


READ ALSO: Steps to Access Nigeria’s Newly-enacted Interest-free Student Loan


Following the passage by the House and assent by President Ahmed Tinubu, here we look at seven things every student, parent, and guide should know about the Student Loan Act:

  1. The new act will establish the Nigerian Education Bank, which will supervise, coordinate, administer, and monitor the management of student loans in Nigeria.
  1. Applicants will go through screening to determine whether they meet the requirements for the loan.
  1. Students in all the higher institutions are eligible for the loan.
  1. It provides funds for all education-related matters, including textbooks, and research.
  1. It is only accessible to students studying in Nigeria.
  1. There will be jail terms for student loan defaulters.
  1. The repayment of the loan will begin two years after the National Youth Service Corps Scheme is completed.

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