Sub-section four of the Student Loan Bill signed into law by President Bola Ahmed Tinubu proposes two years imprisonment or N500,000 fine, or both for defaulting students or anyone found subverting the process.
“Anyone in default of the provisions of sub-section 4 above or found to be aiding the default of any of the provisions of this Act is guilty of an offence and if convicted shall be liable to imprisonment for two years or a fine of N500,000 or both,” it states.
WikkiTimes earlier reported that the billed had passed second reading at the House of Representatives on May 25.
The free-interest bill will be accessed via the Nigerian Education Bank to established as captures in the act.
THE BILL
According to a Punch report, the bill, sponsored by Femi Gbajabiamila, Tinubu’s Chief of Staff was titled ‘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 to provide education for Nigerians and other purposes connected thereto’
Punch further detailed that the bill will receive applications for student loans through higher institutions in Nigeria on behalf of the applicants and screen the applications to ensure that all requirements for the grant of such loans under the Act are satisfied.
In addition, the educational bank [to be established] shall have the powers to approve and disburse to qualified applicants and ensure compliance in respect of disbursement, and monitor academic records of grantees to obtain information on their year of graduation, national service, and employment to ensure that grantees of the loan commence repayment as at when due, among other functions.
Beneficiaries of the loan are expected to start repayment two years after completion of the National Youth Service Corps programme.
Ten per cent of their salaries shall be directly deducted and credited to the students’ loan account to be prescribed by the bank.
“Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly to the student loan account to be prescribed by the bank,” the bill states.
It adds: “For the purpose of sub-section 3 above, a self-employed person shall, within 60 days of assuming that status, submit all information such as the name of business, address and location, registration documents, registered, name of bankers, names of partners, name of directors and shareholders to the commission.
