A student loan is a sum of money you receive as a student from a private company, the federal government, or state government, which you can use to pay tuition, school or living expenses. However, you must pay that money back after graduation, with interest.
In this article we would be discussing ways to get student loan in Nigeria.
Inflation, the high cost of living crisis and high rates of unemployment are factors that are affecting education in Nigeria. The country‘s unemployment rate stood at 33.3 per cent as of the fourth quarter of 2020, per data from the National Bureau of Statistics, while global consulting firm KPMG projects that Nigeria’s unemployment rate would rise further to 40.6 per cent in 2023.
Nigeria’s inflation rate increased to 22.41% on a year-on-year basis in May 2023, according to the latest data from the National Bureau of Statistics Consumer Price Index (CPI) and Inflation Report.
On June 12, 2023, President Bola Tinubu signed the Student Loan (Access to Higher Education) Bill into law, which allows all students who have secured admission into any public Nigerian university, polytechnic, college of education, or any technical and vocational education and training (TVET) school to apply for an interest-free student loan
Types Of Student Loans In Nigeria
There are two major types of student loans in Nigeria. . Federal Loan: This is a loan from the Federal Government of Nigeria. These are loans for students who are at the tertiary level.
Private Loan: This is a loan from private companies like banks, microfinance banks, non-governmental organisations, and educational institutions. These are loans for students who are at the tertiary level as well.
List Of Commercial Banks That Offer Student Loan
Guaranty Trust Bank
Nigerian Educative Bank (Federal Government Student Loan)
List Of Private Institutions That Offer Student Loan Nigeria
Fair Money Loan App
Branch Loan App
Palm Credit Loan App
Aella Credit App
NOTE: Many private institutions have simple requirements for students to get loans, but you have to pay within a very short period. (A minimum of 15 days to 90 days maximum).
General Required Documents To Get Student Loan In Nigeria
Proof of Identity of the student (National ID, Driver’s license, International Passport or Voters card).
Proof of residence of the student.
3 Proof of enrolment/registration or Acceptance from an educational institution.
4 Proof of final academic results for the last year.
Proof of the institution’s tuition fee, accommodation, textbook, and other school expenses.
Latest month’s payslip of the guarantor.
Bank statements of the guarantor.
PLEASE NOTE: Depending on the loan source or provider you select, the documentation requirements and the criteria for document submission may change.
Requirements To Get Student Loan In Nigeria
To be eligible for a student loan in Nigeria, you must meet these requirements:
You must be 18 years and above.
You must have valid Identification (ID).
You must meet the criteria of your school qualifications and requirements.
You must follow the rules and regulations of the government. The minimum length of study for the Federal Government student loan is two years and can last up to six years, depending on your course of study. While the minimum length of study for student loans from the Loans Board is one year and can go up to three years, depending on your course of study.
For the Federal Government student loan, you must be a high school graduate to be eligible for the loan.
You must have a valid and active bank account and a passbook.
For a Federal Government loan, you must not be more than 35 years of age. For a Loans Board loan, you must not be more than 40 years of age.
You must also apply for the loan within the specified period stated by the loan provider and follow due procedures.
How To Get Student Loan In Nigeria In Simple 7 Steps
Go to the loan provider of your choice. (Nigerian Education Bank, Commercial Banks, or Private Institutions).
Check if you are eligible for the loan. (Not everyone will be eligible to collect a student loan).
Apply for the loan.
Provide all the necessary documents requested by your chosen loan provider.
Complete all the paperwork or form.
Accept the terms and conditions. (Every loan provider has terms and conditions you must abide by before you can be granted a loan).
Get your money. (Most of the time, loan providers give out a loan by bank transfer).
I hope this article was helpful as well as interesting.