Hi Margaret,
You use neem oil for body lice just as you use neem oil for scabies or even head lice. The principles are the same:
Add neem oil to the bath water and soak in it.
Wash the whole body with an extra strength neem soap. Even neem head lice shampoo is ok.
On top of that you can use a neem lotion on your skin. It helps to soothe the irritation from the bites
But, most importantly, you need to meticulously eradicate the buggers throughout the house by washing all clothing and bedding, vaccuuming the carpets etc.
Body lice are nowhere near as hard to eradicate as head lice or scabies mites. Even just the last point in the list above should help.
If you find that you still have problems, despite meticulous washing of everything and despite the neem treatment, then you are likely dealing with something else.
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Neem should not be taken by anyone who is pregnant or trying to conceive. Neem contains compounds similar to those in aspirin and must never be used to treat children with fevers. It should not be taken by people with known allergies to aspirin and aspirin like substances. Neem oil should not be taken internally.