ALL YOU NEED TO KNOW ABOUT NELFUND (NIGERIA’S STUDENT LOAN)

It is no longer news that the Student loan scheme(NELFUND) has kick started since 2024 and disbursement of funds have begun for those who registered and qualified. There are however many controversies and misinformation about it. The other day, I overheard someone saying that when it is time to repay, the ‘interest’ on the loan would have exceeded the actual amount, and I had a very good laugh because the person spewed rubbish with so much confidence.

Hence, why this post would be explaining all that NELFUND is all about to you like you are 5 years old.              

The Nigerian Education Loan Fund (NELFUND) was established on the  3rd April, 2024 by the Tinubu- led Nigerian government. It is an initiative meant to provide interest-free  loans to Nigerian students who are eligible. The major idea behind NELFUND is to ensure that financial incapability is never a reason that would hinder any student from accessing education.

ELIGIBILITY:

·         Must be a Nigerian citizen

·         Must be in a public university, polytechnic, college of education or vocational school in Nigeria. (Private university students aren’t eligible)

·         Your institution must have uploaded their data into the NELFUND portal to verify student status.

APPLICATION:

All you have to do is apply for the loan on the official NELFUND website at nelf.gov.ng. and follow the necessary steps that would be required of you. Also, you have to provide all the required documents.

THE LOAN:

The loan is comprised of your tuition fees (which would be paid directly to your institution) and a monthly upkeep allowance (which you would have to apply for and would be paid directly into your account). The amount of the allowance would be determined by NELFUND (as of now, the monthly upkeep is # 20,000)

REPAYMENT:

                Repayment of the loan commences two years after completing your NYSC program. It would involve a deduction of 10% from your monthly salary till it is fully repaid. There are other information that might interest you, concerning the repayment (find them on the NELFUND website at nelf.gov.ng)

That’s basically all you need to know about the Nigerian student loan scheme (NELFUND).

Just in case you might want to apply for this, the application portal for the 2024/2025 academic session opened on 22nd February, 2025.Visit the NELFUND website at nelf.gov.ng  to do this.