The newly elected president of the Federal Republic of Nigeria has been making the news since his inauguration. From fuel subsidy removal to the electricity act, and now our latest law in place; THE STUDENT LOAN ACT.

This act was signed into law as an effort to make education accessible to students from all backgrounds who are at their tertiary level of education. The new student loan act offers up to N500,000 a year at an interest-free rate, as well as provides funds for all education-related issues, including textbooks, and research.
And since SnapCash is your one-stop for the best financial news, we’ve curated an all-you-need-to-know article on the new student loan act. You’re welcome!

Facts you should know about the student loan act We never want you to run on hearsay or “dem say dem say” and that’s why we’ll be taking a closer look at some of the facts of this new act. Shall we?

## Application criteria
You may already be wondering “What are the requirements, and how do I know I’m eligible?”. We got you!

The applicant must have gained admission into any Nigerian University, Polytechnic, College of education, or Vocational school established by the Federal Government or any state government: This means that the student loan act is only applicable to students studying in Nigeria. Sorry to our Diasporan readers… The applicant’s family must have a yearly income that does not exceed N500,000: For those whose parents or guardians earn about a million a year, they don’t qualify for the student loan. Please note that this means; the monthly income in your family must be about N42,000. Each intending applicant must have a minimum of two guarantors who must fall into one of the following categories: Civil servants of at least Level 12 in the service — this refers to a civil servant with grade level 12 and earns between N255,000 to #N700,000 monthly Lawyers with a minimum of 10 years of post-call experience — this refers to a lawyer of the federation with a minimum of 10 years of experience after being called to the bar. Judicial officers or Justices of the Peace — a local judicial official who is empowered chiefly to administer oaths, perform marriage ceremonies, certify documents, and in some states may have additional judicial powers (as to issue summonses). 

## Disqualification criteria
We’ve seen the eligibility criteria, now let’s take a look at the disqualification criteria.
Parental loan default: If the intending applicant’s parent has been found to have defaulted on a previous loan, the applicant is immediately disqualified. Applicant’s loan default: For an applicant who has taken out a previous loan and is found to have defaulted on the said loan, there is also an immediate disqualification. 

Criminal offenses: If an applicant is found to be convicted of a felony (any offense punishable by death or imprisonment of 3 years or more without previous conviction), be found to be involved in a drug case or has been/is involved with examination malpractice, they are automatically disqualified from participating in the student loan act. Repayment and penalties
This seems a tad bit unreal, doesn’t it? We’re all skeptical about how effective and helpful this new act will be to the average Nigerian youth
You may already be wondering how the student loan will be repaid and the associated penalties. Again, we’ve got you covered.

Students are required to begin repayment for the loan 2 years after their National Youth Service Corps (NYSC) program with a deduction of 10% from their monthly salary or total monthly profit (if they are self-employed). Self-employed individuals must submit relevant information and documentation such as business name, address, location, registration documents (if applicable) within 60 days to the committee. The chairman of the committee is to be notified of a job change within 30 days of working under new employment. Failure to pay back the student loan will result in a fine of N500,000 or imprisonment for a term of 2 years. This scheme is set to be managed by the Central Bank of Nigeria on behalf of the federal government. 

The governor of the CBN shall set up a special committee and head this committee as the Chairman. He shall also appoint a committee secretary.
According to the new act, students applying for loans must apply to the chairman of the education Fund committee through the student affairs officer of their respective institutions upon satisfying the criteria above. Loan disbursements are made within 30 days of the application reaching the chairman of the committee.

## What's next
Now that you’re well informed of all the necessary details of the new student loan act. Will you be applying anytime soon? Are you eligible?
Tell us what you think in the comments!


Tinubu has approved loans for students — are you eligible?

As you dey plan for money…na so money sef dey plan for you!


Have you ever been in a position where you’ve saved up a particular amount more times than you can count?


You save. Obinna needs money to buy a lecturer’s handout. You spend.


You save again. Mama falls sick. You spend.


You save AGAIN! Water from the flooded streets of Lagos knocks your car engine. You spend.


Frustrating right?


When it comes to loans… you may be tempted to run away…


This is your reassurance that GOOD lenders (like SnapCash) understand that LIFE HAPPENS to everyone and even when you plan to repay on the due date, an unplanned emergency could pop up and you hit a roadblock. If this happens to you, there’s no need to panic or abscond (you’re not a thief are you?!).


Take a deep breath and follow the steps below to make informed decisions that’ll get you out of financial muddy waters in no time…


## Contact the lender immediately
The first instinct most people have when they realize they are unable to pay back their loan on time is to panic, dread and hide. While this might be a natural response, it does more harm than good.


They sit, fret and wait for the lender to call and ask why they haven’t paid their debt or inform them of the seizure of their collateral.


This is what most people go through, but you are not most people and can avoid this. It’s quite simple, when you get into a tight situation that’ll deprive you of meeting the repayment date, it’s now time to make that ‘bound-to-be-uncomfortable’ but ‘needed’ CALL to the lender.


Explain your situation to them with sufficient evidence, so they don’t think you are trying to skip on your payment. Informing them of your struggles on or after the due date makes you seem like a fraud, so contacting the lender and keeping them informed shows a level of trustworthiness they might not have known existed. (Don’t blame us! We are used to super-stories from borrowers too).


## Ask for a grace period
The next thing you should do when you can’t make loan payments on the due date is to ask for an extension AKA GRACE PERIOD.


Now that you’ve contacted the lender and explained your situation, you can ask for a grace period as a means to smooth out any problem affecting loan payment.
Depending on their terms, lenders may grant a grace period of 0 to 30 days after the due date.


During this extended period, you will be free to work through your financial difficulties, and here’s something really interesting — when you resume debt payment you won’t be asked to pay a late fee. (See why honesty is the best policy!). The grace period also gives you a chance to restructure your loan with the lender and agree on terms that are fit for you and the lender.


## Restructure your loan terms
Restructuring the terms of your loan can take the form of reduced interest rate, extended repayment period or reducing the remaining balance. (Plenty of options available for you!)


It will give you some relief and make it easier for you to repay your debt. It could be temporary or permanent. Temporary restructuring is such that your terms will be adjusted for the period you are facing problems while permanent restructuring is such that your loan terms are adjusted and the adjustments are kept even after your problems have been solved.


## Budget and save towards clearing up debt
Once your loan has been restructured…
The panic dies down and you relax back into your any-how money routine.
No! Don’t do that.


Now would be the time to swiftly get your finances in check and pay back your loan. And you do that by strict budgeting, that’ll allow you to save up enough to clear up your debts within your grace period.


Remember that for the duration of your grace period any debt paid off will not attract a late fee.


And while it may entice you to look for get-rich-quick investments, you should not succumb to the temptation, as a high-risk investment is another means to splurge your money and end up in the financial trenches. AGAIN! (Suffer nor dey tire you?).


## Pay your debt
Well, this speaks for itself. Doesn’t it?
Once you’ve followed the above steps; contacting the lender, asking for a grace period, restructuring your loan terms and budgeting to save up, you can now pay your debt with ease.


The lender will thank you for it and might even sneak your name into the responsible borrowers’ list. Here’s a way to know how you can make that list.


A rule of thumb is to always clear up pending debts before your grace period elapses. It not only boosts your credibility but also your loan worthiness for the future.
…
As always, SnapCash will always get you out of sticky financial crises with our never-ending curated information just for your consumption!
We’re always happy and available to offer you expert advice and opinions…
Shoot us a message at hello@snapcash.ng for more clarification on what to do when you fall short on repayment!





What to do if you can’t repay your loan when due

Quite honestly, everyone wants their loan approved but not everyone gets their loan approved. But that doesn’t have to be you, with these 5 hacks you’ll have your loan secured with ease.
Let’s get started!


## Check your credit score
Are there really any loan problems you may have that don’t involve your credit score? The answer is yes but in regards to ‘getting’ a loan, your credit score may be the biggest contributing factor to why you were declined.
So before you get subjected to rejection from your lender, check out what your credit score might state before going ahead to apply for that loan. When you do this you can easily identify any issue or error that may cause your loan application to get rejected and take steps to correct them.


## Provide accurate information
It may seem too tempting to provide false information when asked, to make yourself seem more eligible for a loan but all that does is make you get rejected a lot faster.
Digital lenders use automated algorithms to process loan applications which rely on accurate data that is also consistent. Providing false or ‘slightly altered’ data can result in your loan application being rejected or delayed. Lies and technology are a bad mix.


So your best bet is to provide information that is accurate and consistent so your loans can be processed and approved faster.


## Reduce your debt-to-income ratio
A high debt-to-income ratio may indicate that you have too much debt in contrast to your income, which can lower your chances of getting approved for a loan.
Lenders also use your debt-to-income to determine the loan amount you would be eligible to receive. You stand the risk of only being approved for a smaller loan regardless of what you want if your debt-to-income ratio is too high.
Reducing your debt-to-income ratio by paying off all existing debts before applying for a new loan can greatly improve your chances of being approved for a loan by a digital lender. Read more about your debt-to-income ratio and its impact on your loan application process.


## Build your credit history
If you don’t have much of a credit history, now is the time to fix that. Consider taking out a small loan and making regular on-time payments to build up your credit history.
People who have no credit history, have no credit record and as such, have no credit score and lenders consider a lack of a credit history a big risk, as they have no way of knowing if the individual asking for a loan is creditworthy.
A good credit history is a sign of creditworthiness, so take out some time to build one and your loan approval chances will be improved. You’re welcome!


## Research loan options
Another hack that would increase your loan approval chances is dependent on you. We’ll tell you how…
In order to get a better idea of the loan product fit for you, you ought to do proper research on the loan options made available by your prospective lender. This helps you pick a loan option that is already tailored to your specific needs and qualification, making your loan approval all that much faster.
Remember, proper research of your prospective lender will save you from so many troubles!


If these hacks have been helpful to you — please share with your family, friends and even foes. Don’t forget to send us a message at hello@snapcash.ng and let’s get you started on your loan application process!


Do you want your loan approved? Try these 5 hacks!

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Featured Articles

Tinubu has approved loans for students — are you eligible?

What to do if you can’t repay your loan when due

Do you want your loan approved? Try these 5 hacks!