While many people want to get the education that they need, it may not come easy and this is why they may decide to take loans that may help them achieve their dreams. However, taking loans as a student means that you will get the money to pay for your school fees but you will be required to pay back the loan in bits or as required by the lender for a period.
The FG has recognized that some Nigerian students are struggling to pay their fees and gain access to good education and have thought of creating a loan initiative that manyof these students can benefit from.
What is the FG saying about Student Loans?
On Monday, the Federal Government announced that the Student Loan Scheme, recently established, will be financed in part by the Education Tax managed by the Federal Inland Revenue Service. This information accompanied the explanation of the eligibility criteria for loan applicants. The statement intensified that the loan scheme would be entirely automated, eliminating any human intervention in both the application and processing stages.
“That is why the education tax fund is one of the sources of funding that we will use to execute this program.” Dr Zacch Adedeji, FIRS Chairman said.
The Minister of State for Education, Dr Yusuf Sununu, also revealed that the scheme was slated to start in January 2024 as the President earlier promised in October 2023.
“This is in fulfillment of Mr President’s promise that we will make education accessible to all. This is one of the schemes where we will be applying the education tax that we collect.
It is a way of being accountable to the taxpayers because the essence of education tax is to consolidate and restore education integrity and quality. In fulfilling that part of the Act, the education tax fund is one of the sources of funding that we will use to execute this program,” Adedeji said, supporting the Minister of State for Education.
The Executive Secretary of the Scheme, Sawyerr, stated that qualified applicants would submit their requests through the loan app or website, ensuring that the scheme remains free from human involvement.
He also outlined the application procedure, specifying that potential candidates need to provide details such as:
- JAMB registration number
- Date of birth
- National Identification Number
- Biometric Verification Number, among other requirements.
“The applicant will go on to a portal, or they will engage with the app. They will have to put in certain pieces of information that make them eligible, such as their JAMB number and, of course, the tie-in to their date of birth,” the Executive Secretary stated.
“Other pieces of information include their NIN, which confirms that they are Nigerians. This loan scheme is being paid for by Nigerian taxpayers. So, it’s for Nigerians and the NIN helps verify and qualify them as such.”
“Their BVN is for financial inclusion because this scheme in itself will, at some point, be able to empower students, so we need to know they have bank accounts. We need to know where their accounts are to be able to access those accounts”
He went ahead to explain that the inclusion of their BVN is for financial accessibility, as this scheme aims to empower students. He said It is important to verify that applicants have bank accounts and to identify the specific institutions they are affiliated with through their matriculation and admission numbers. This detailed information, according to the secretary, allows for the direct transfer of approved fees or tuition requirements to the respective institutions, providing notable advantages for the institutions.
Sawyer shared that the purpose of this initiative is to eliminate financial barriers as a hindrance to pursuing higher education at the tertiary level. This legislation aims to narrow the divide between the aspiration to pursue further studies and the ability to do so by addressing the financial constraints that often impede progress.
So, as outlined by the FG, if you are a student and you need a loan; while applying for loans, be sure that you have all essential documents such as your JAMB registration number, NIN, and Biometric verification alongside other information you may be required to present as the application moves on.
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