Student Loan in Nigeria – Requirements, How to Apply, Repayment, FAQs

Student loans are financial aids provided to students to assist with educational expenses, typically covering tuition fees, accommodation costs, and other related expenses. These loans are designed to ease the financial burden on students and their families, enabling them to focus on their academic pursuits without the constant worry of financial constraints.

In Nigeria access to quality education can be challenging. The rising cost of tuition and living expenses can make achieving academic dreams seem distant, leaving many aspiring students and their families grappling with the burden of financing their education. Fortunately, the student loans recently approved by the government of President Bola Ahmed Tinubu have emerged as a viable option, providing a bridge between financial constraints and academic aspirations.

Student loans can help with various costs like tuition fees, textbooks, housing, and daily expenses. They're a go-to for students lacking upfront funds for education.

A standout feature of student loans is their usually lower interest rates. This is because they're viewed as an investment in the student's future income potential.

This post will cover Student Loan in Nigeria – Requirements, How to Apply, Repayment, FAQs.

What is the Nigeria Student Loan and how Does it Work

It's a special kind of loan from the government to help students pay for their education and related stuff. The student loans introduced by Bola Ahmed Tinubu don't have interest rates like regular loans, and they let students repay the money in a way that suits them.

Thanks to the Student Loan Act, also known as the Student Loan Bill, the Education Loan Fund is set up to support Nigerian students who want to go to college.

One of the best things about this program is that students don't have to start repaying the loan until two years after they finish their National Youth Service Corps (NYSC) program. This gives them time to get settled into their careers before they have to start worrying about paying back their loans.


If you're a student in Nigeria and you need a loan to help pay for your education, there are a few things you need to do.

First, you need to be eligible for the loan. This means that you must be a Nigerian citizen or permanent resident, you must be attending an accredited institution in Nigeria, and your family's annual income must be less than N500,000.

You will also need to provide some documents, such as:

  • Your national identity card or international passport
  • Proof of admission to your school
  • Your transcripts or academic certificates
  • Proof of your parent's or guardian's income
  • Contact details and personal information for your guarantor(s)
  • Recent passport-sized photographs
  • Completed application form

You will also need to have a guarantor. This is someone who will agree to pay back the loan if you are unable to do so. Your guarantor must be a civil servant with at least 12 years of service.

You will need to start repaying the loan two years after you complete your National Youth Service Corps (NYSC) program.

How to Apply

So, here's how it works according to the student loan law in Nigeria. If you want a student loan, you apply through your college or university. The application goes through your school's student affairs division, and they make a list of students. This list, along with a letter from the vice-chancellor, goes to the bank.

The bank's chairman gets the letter, and in about 30 days, they start giving out the loans.


You start paying back the loan two years after you finish the National Youth Service Corps program.

If you work for someone else, they'll take 10% of your salary to repay the loan. If you're your own boss, you need to send 10% of your monthly profit.

If you don't follow these rules, you might face penalties, like fines or even going to jail. So, it's important to stick to the repayment plan.


How are student loan repayments deducted?

Student loan repayments are typically deducted from your paycheck through a process called payroll deduction. This means that your employer will automatically deduct a certain amount of money from your paycheck each month and send it directly to the lender. The amount of money that is deducted will depend on the terms of your loan, but it is usually around 10% of your monthly salary.

What is the repayment period for student loans?

The repayment period for student loans in Nigeria typically begins two years after you complete your National Youth Service Corps (NYSC) program. The repayment period can range from 5 to 20 years.

Which banks offer student loans in Nigeria? 

Well, you can check out banks like Access Bank, GT Bank, and First Bank. Each bank has its own rules and cool stuff for students looking for loans.

How long does it take to get a student loan approved?

The approval process for student loans in Nigeria typically takes between 2 and 4 weeks.

What happens if I cannot repay my student loan?

If you cannot repay your student loan, you may be subject to penalties, including fines and imprisonment. You should contact your lender as soon as possible to discuss your repayment options.

Are there any other types of financial aid available to students in Nigeria?

Yes, there are a number of other types of financial aid available to students in Nigeria, including scholarships, grants, and bursaries. You can contact your school's financial aid office to learn more about these options.

Who is eligible for student loans in Nigeria?

To be eligible for student loans in Nigeria, you must meet the following criteria:

  • Be a Nigerian citizen or permanent resident
  • Be admitted to an accredited institution of higher learning in Nigeria
  • Have a family income of less than N500,000 per year
  • Provide two guarantors who are civil servants with at least 12 years of service


The Nigerian government's establishment of the student loan program, in collaboration with the financial sector, marks a pivotal step towards expanding access to higher education and empowering the nation's youth. 

This initiative signifies a profound commitment to bridging the socioeconomic gap and nurturing a generation of well-equipped individuals capable of driving innovation, economic growth, and social progress.

This blog post have covered all you need to know about the student loan in Nigeria.

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