National Assembly approves a law regarding student loans

The Students Loan Bill, which would increase access to financial aid for students in higher education institutions, was approved by the National Assembly’s two houses on Wednesday.

A Bill for an Act to Provide for Easy Access to Higher Education for Nigerians Through an Interest-Free Loan from the Nigerian Education Bank Established in This Act with a View to Providing Education for Nigerians and for Other Purposes Connected Thereto was the name of the bill that was sponsored by the Speaker of the House of Representatives, Femi Gbajabiamila.

The law aims to create the Nigerian Education Bank, which will have the authority to oversee, coordinate, manage, and administer student loans across the nation.
On behalf of the applicants, it will also accept applications for student loans from Nigerian universities and colleges, screening them to make sure all Act criteria are met before approving the loans.

The bank will also have the authority to approve and release funds to approved applicants, monitor grantees’ academic records to determine when they graduated, do national service, and find work to guarantee that grantees of the loan begin payback when it is due, among other duties.

According to the Act, there shall be no discrimination based on gender, religion, tribe, status, or handicap for any Nigerian students pursuing higher education in public institutions of higher learning.

The bill was approved by the House of Representatives earlier this year and sent to the Senate for consideration. A copy will be created and forwarded to President Muhammadu Buhari for approval with the Senate’s approval. Nigerians would be able to obtain the loans when it is signed into law.