Despite the scary penalties for defaulters of the student loan bill assented into law by Nigeria’s President, Bola Ahmed Tinubu, not all students are eligible for the loan.
The zero-interest loan would be paid two years after beneficiaries finish their one-year mandatory service under National Youth Service Corps (NYSC). The repayment method shall be through direct deductions of 10 per cent of their salaries.
FOCUS: Defaulters of Tinubu’s Student Loan Risk Imprisonment/N500,000 Fine
WikkiTimes earlier reported that defaulters [students or anyone found guilty of subverting the loan process] risk two years imprisonment or N500,000 fine, or both as the case may be.
WHO CAN APPLY?
WikkiTimes learnt that there are guidelines and conditions for the loan. According to the provision of the bill, the family income of a student seeking the loan must “not exceed N500,000” per annum.
Potential applicants are also required to provide “a minimum of two guarantors each who must fall into one of the following categories: Civil servants of at least level 12 in the service, lawyers with at least 10 years of post-call experience, judicial officers or justices of the peace.”
The federal government, among other conditions, says “students who have defaulted in previous loans, examination malpractice or any illegal activities shall not be entitled to the loan.”
“Processing any applicant’s application and issuance shall be completed within 30 days of the application reaching the Chairman of the Committee, subject to Section 18 (4) of the Act,” the government added.
