Is there any government loan for students in Nigeria? In this article, we’ll provide you with the information you need to know about government loans for students in Nigeria.
In Nigeria, there are various government-sponsored loan programs available for students to finance their education. Some of the most popular ones are mentioned and explained below.
1. Tertiary Education Trust Fund (TETFund)
This program provides grants and loans to eligible students at all levels of higher education institutions in Nigeria.
To apply for a Tertiary Education Trust Fund (TETFund) loan in Nigeria, follow these steps:
- Check eligibility: TETFund loans are available for students enrolled in approved tertiary institutions in Nigeria. Check with your institution to confirm if it is TETFund approved.
- Collect required documents: You will need to provide proof of admission, evidence of payment of the acceptance fee, proof of identity, and other relevant documents as specified by TETFund.
- Apply online: Visit the TETFund website and complete the online loan application form. You will need to provide personal and financial information, as well as information about your education and course of study.
- Submit the required documents: Once you have completed the online application, you will need to submit the required supporting documents either in person or through a designated TETFund center.
- Wait for processing: TETFund will review your application and, if approved, disburse the loan directly to your institution for payment of tuition and other eligible expenses.
- Repay the loan: Repayment of the loan usually starts after graduation or after a specified period as agreed upon.
Note: The loan application process and requirements may change from time to time. It is advisable to check the TETFund website for the most up-to-date information.
2. State Government Loan for Students
The only active and ongoing state government loan application is the Kaduna State Education Loan.
Here are the requirements to apply for the Kaduna State Education Loan.
- Only students who are employed can prove through their bank statement that they earn a salary each month.
- You need a sponsor. A sponsor is anybody who is willing to take on and regularly pay back the loan for your study. The person can be your parent, guardian, friend, spouse, etc. You should get a sponsor to apply for you if you are an unemployed student.
- The loan processing will start once you apply.
- You’ll need a guarantor who works for either Kaduna State or the Federal Government. A private sector employee cannot stand as a guarantor.
- The Kaduna State Education Loan is meant for all citizens of Kaduna State, either by state of origin or by residency.
- Apply for the Kaduna State Education Loan via scholarship.kdsg.gov.ng/loans. Make sure you submit all the required documents.
- Nigerian Students Loans Board
The Nigerian Students Loans Board provides loans to students pursuing undergraduate and postgraduate studies in recognized Nigerian universities and colleges.
How to apply for Nigerian Students Loans Board
- To apply for a loan from the Nigerian Students Loans Board, you need to follow these steps:
- Visit the official website of the Nigerian Students Loans Board at www.nslb.gov.ng.
- Register by clicking on the “Register” button on the homepage.
- Fill out the required personal and academic information, then submit your registration.
- Log in to your account and complete the loan application form.
- Attach all the required supporting documents, such as proof of identity, an admission letter, academic transcripts, and a guarantor form.
- Submit the completed loan application form and await a response from the Nigerian Student Loans Board.
If your loan application is approved, you will receive a loan offer and disbursement instructions.
Note: Before applying, make sure you meet the eligibility criteria for the loan, which include being a Nigerian student, enrolled in a recognized tertiary institution, and having a guarantor who is a public servant.
3. Central Bank of Nigeria Loan Scheme
This loan is quite different from other education loans for students. The CBN offers loans for university and polytechnic graduates and undergraduates who are willing to set up businesses.
The CBN, as part of its policy measures to address rising youth unemployment and underemployment, introduces the Tertiary Institutions Entrepreneurship Scheme (TIES) to create a paradigm shift among undergraduates and graduates of Nigerian polytechnics and universities from seeking white-collar jobs to entrepreneurship.
Business owners are expected to start paying back after 12 months, and repayment should be completed in five years.
Interested persons can apply online via the designated online portal, providing the requisite information and documents, such as:
- First degree and NYSC discharge (or exemption certificate); a valid mobile phone number (linked to your NIN); your BVN, NIN, and TIN; and an email address.
- Evidence of business registration (certified true copies of relevant CAC documents); and Corporate bank account number of the business.
- Existing businesses can also qualify for funding through an equity investment.
- It is important to note that the eligibility criteria, interest rates, and repayment terms for these loan programs may vary, and interested students should visit the relevant websites or offices for more information.
Federal Government Loan For Students In Nigeria (Proposed)
In Decree No. 50 of 1993, the federal government promulgated another legislation to establish the Nigerian Education Bank. And in the year 2004, the University Autonomy Bill was passed, which vested in the university governing councils the rights of employers of staff at universities.
The federal military government promulgated a decree establishing the Nigerian Student Loans Board with headquarters at Alhaji Tokan Street, Surulere, Lagos, then the federal capital city.
Also in 2022, both chambers of the Nigerian National Assembly passed the Students Loan Bill, sponsored by Speaker Hon. Femi Gbajabiamila, which aims to assist Nigerian students in higher institutions of learning to have access to financial assistance. The bill seeks the establishment of the Nigerian Education Bank, which would have powers to supervise, coordinate, administer, and monitor the management of student loans in Nigeria and receive applications for student loans through higher education institutions in Nigeria on behalf of the applicants, screen the applications, and ensure that all requirements for the grant of such loans under the Act are satisfied.
The bank will be able to approve loans for eligible candidates, manage and oversee their loan accounts, monitor their academic progress to ensure timely repayment, and perform other related duties. Additionally, the bill ensures that all students pursuing higher education in public institutions in Nigeria have equal access to the loan without discrimination based on gender, religion, tribe, status, or disability.