How to apply for student loan in Nigeria
Sophia Hammond
Updated on April 07, 2026
Many Nigerians have been reacting to the student loan that was recently introduced by the Federal Government.
Some people argue that the president should focus on reducing the rate of unemployment in the country, instead of the student loan bill that he passed into law. Many have asked what is the use of going to school in a country where your chances of getting a good job upon graduation are very slim.
While Nigerians are known to be opinionated people, it is also essential to understand what a student loan is and how it can make or break the country’s educational system.
What is a student loan?
Student loans are financial tools designed to help students pay for their education-related expenses. These loans are specifically intended for educational purposes, including tuition fees, books, supplies and living expenses.
They are offered by various sources, such as the government, private lenders and educational institutions. An example of this type of loan scheme is the student loan bill that was recently passed into law in Nigeria. These loans are funded by the government and typically have lower interest rates and more flexible repayment options.
Another type of student loan is private student loans. These loans are offered by banks, credit unions and other private financial institutions. They usually have higher interest rates and may require a cosigner, depending on the borrower’s credit history.
Student loans generally have a grace period, which is a specific timeframe after graduation or leaving school when borrowers do not have to make payments. After the grace period ends, borrowers must start repaying the loan, typically in monthly instalments, over a specified period.
Student loans provide financial assistance for individuals seeking higher education, but it is crucial to approach them with careful consideration. Understanding the various types of loans, repayment options and associated responsibilities is essential for making informed decisions.
ALSO READ: Top 10 loan apps in Nigeria
By doing so, borrowers can effectively manage their student loans and pave the way for a brighter future without being overwhelmed by debt.
Student loans in Nigeria
Student loans in Nigeria play a vital role in facilitating access to higher education for individuals who may not have the immediate financial means to pursue their educational aspirations. These loans provide financial assistance to students, helping them cover the costs associated with tuition fees, textbooks, accommodation, and other educational expenses.
Since the news of the student loan bill which was signed into law by President Bola Ahmed Tinubu, many have said that this is a ‘way forward’ for the Nigerian educational system.
The president recently revealed that the student loan will begin in September/October this year. To reveal where the loan will be generated from, Premium Times reported that funding is to be drawn from the following:
- One per cent of all profits accruing to the Federal Government from oil and other minerals; taxes, levies and duties accruing to the federal government from the Federal Inland Revenue Service (FIRS), Nigerian Immigration Service and Nigerian Customs Service, and
- Education bonds, education endowment fund schemes, donations, gifts, grants and revenue accruing to the fund from any other source.
Despite the benefits the student loan in Nigeria offers, there have been a lot of varied reactions to it.
For instance, the National President of the Academic Staff Union of Universities (ASUU), Professor Emmanuel Osodeke, in an interview with The Punch said: “The union will react soon but everyone knows our position on student loans because you will end up encumbering the children of the poor with loans and debt after graduating. This is discriminatory. If what I read online is correct, it said it is only for children whose parents earn at least N500,000 per annum. That means if your father earns more, you won’t benefit”.
Also, the National President, Academic Staff Union of Polytechnics Mr Anderson Ezeibe, said: “I have not studied the bill and we don’t want to react on the surface. But I have seen one area that will not be practicable.
“It says that students should refund the money two years after NYSC. But what is the provision for someone who is not working after NYSC? And will they all get jobs immediately after NYSC?”
Student loan bill
The President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, took a significant step on June 12, 2023, by signing a bill into law that establishes the Students Loan Fund (SLF) in Nigeria. This initiative aims to provide interest-free loans to individuals pursuing higher education in the country.
According to Premium Times, the bill is titled: “Students Loans (Access to Higher Education) Act, 2023.” The bill, sponsored by the former Speaker of the House of Representatives, Femi Gbajabiamila, was introduced in 2016 as a proactive measure to tackle the funding challenges within Nigeria’s tertiary education subsector.
The establishment of the Students Loan Fund is expected to bridge the financial gap and enhance access to education for aspiring students.
ALSO READ: Fake Alert: How fraudsters scam people, how to identify fake alert apps
By implementing this law, the Nigerian government recognises the importance of investing in education and empowering individuals to pursue higher studies. The interest-free nature of the loans will alleviate the burden of high-interest rates typically associated with student loans, making education more affordable and accessible to a broader range of individuals.
As Nigerians eagerly await the implementation of the Act, it is hoped that this initiative will pave the way for more comprehensive reforms in the education sector and create a conducive environment for learning, innovation and growth.
The primary objective of this law is to ensure that education is accessible to all Nigerians. With the student loan bill passed into law, individuals pursuing higher education in various public institutions can now secure loans through the Nigerian Education Bank. The aim is to alleviate the financial burden associated with tuition fees and enable more students to pursue their educational aspirations.
One significant aspect of this law is its commitment to equal opportunity. It explicitly states that all students, regardless of their gender, religion, tribe, position or physical status, have an equal right to access the loan. This provision ensures that discrimination is eliminated, and every Nigerian student can avail themselves of this financial assistance.
It is important to note that the loans provided under this law are specifically designated for the payment of tuition fees. This ensures that the funds are directed towards covering the educational expenses of the students and easing their financial responsibilities.
As the implementation of this law unfolds, it is crucial for effective management and oversight of the Nigerian Education Bank to ensure the loan disbursement process is efficient, transparent and accountable. This will enable the smooth functioning of the loan programme and instil confidence in students and their families.
How to apply for a student loan in Nigeria
To apply for a student loan in Nigeria, the following criteria have to be met:
1. Following the bill which was passed on June 12, 2023, students who wish to apply for loans under this Act must meet certain conditions and submit their applications to the Chairman of the Bank through their respective educational institutions.
2. Admission into a public Nigerian university, polytechnic, college of education, or any Technical and Vocational Education and Training (TVET) school. The student must have secured admission into any public tertiary educational institution.
3. The applicant’s individual or family income must be less than N500,000 per annum. This ensures that the loan is targeted towards students from economically disadvantaged backgrounds.
4. The applicant must provide at least two guarantors who meet specific criteria:
- Civil servants: The guarantors should be civil servants who have attained not less than level 12.
- Legal professional: Alternatively, a lawyer with at least 10 years of post-call experience can also act as a guarantor.
- A judicial officer or Justice of Peace: A judicial officer or a Justice of Peace can also serve as a guarantor for the loan.
5. Students who have defaulted on previous loans or have been found guilty of exam malpractice, felony or drug offences will not be considered for the loan. This ensures that the loan is granted to deserving and responsible students who uphold ethical conduct and adhere to the law.
6. Students whose parents have defaulted on previous loans will not be considered for the loan. This provision aims to encourage parental accountability and responsibility in loan repayment, ensuring the sustainability of the loan program and its availability to future generations of students.
Once the specified conditions have been met, students can proceed to apply for the loans by following the outlined procedure. The application process involves the following steps:
1. Qualified applicants from each institution are required to submit their loan applications through the Students Affairs Office of their institution.
2. The Students Affairs Office compiles a comprehensive list of all qualified applicants from the institution. This list includes the necessary information and supporting documents required for the loan application.
3. A cover letter accompanies the list of qualified applicants and is signed by the Vice-Chancellor, Rector or the head of the institution, along with the Student Affairs representative. This cover letter serves as an endorsement and official confirmation of the applicant’s eligibility and suitability for the loan.
On repayment, the act states: “Any beneficiary of the loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps programme. Repayment shall be by direct deduction of 10 per cent of the beneficiary’s salary at source by the employer.
“Where the beneficiary is self-employed, he shall remit 10 per cent of his total profit monthly to the student loan account to be prescribed by the bank.
“For the purpose of sub-section 3 above, a self-employed person shall, within 60 days of assuming that status, submit all information such as the name of business, address and location, registration documents, registered, name of bankers, names of partners, name of directors and shareholders to the Commission.
“Anyone in default of the provisions of sub-section 4 above or found to be aiding the default of any of the provisions of this Act is guilty of an offence and, if convicted, shall be liable to imprisonment for two years or a fine of N500,000 or both.”
ALSO READ: 8 ways to spot loan sharks in Nigeria
