The National Assembly has passed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024.
This revamped legislation aims to make student loans more accessible and establish clearer repayment terms.
The bill follows President Bola Tinubu’s request to revise the initial Student Loan Bill passed in June 2023.
The President cited concerns about the program’s initial implementation and proposed changes to ensure its smooth operation.
According to the bill, the family income threshold requirement and the need for a guarantor are no longer needed, making it easier for students from diverse backgrounds to apply.
Loan approval will hinge on verification criteria set by the Nigerian Education Loan Fund (NELFUND).
The new legislation also mandates fair distribution of approved loans across the country.
Loan repayment begins upon securing employment, with a two-year grace period after completing the National Youth Service Corps program and deferral options are available for unemployed graduates.
The bill stated that providing false information during the loan application process is a criminal offense and penalties can be severe, reaching up to three years’ imprisonment.
Provisions exist for loan forgiveness in extenuating circumstances like death or natural disasters.
For more information on student loans in Nigeria, check out these guides:
