Student Loan

Introduction

Education is one of the most powerful tools for national development, yet for many Nigerians, the rising cost of tuition and living expenses has made higher education difficult to access. In response to this, the Nigerian government launched the Nigerian Education Loan Fund (NELFUND) — a transformative initiative designed to make student loans accessible, affordable, and sustainable for millions of students across the country.

This post will give you an in-depth look at student loans in Nigeria, especially the NELFUND scheme, how it works, who qualifies, how to apply, and what to expect in 2025 and beyond.

Student Loan

🧾 What Is a Student Loan?

A student loan provides financial aid that helps students pay for tuition, books, living expenses, and other education-related costs. Unlike scholarships or grants, students must repay loans, although many lenders offer flexible or deferred repayment plans.

In Nigeria, most families have historically had limited or no access to student loans. But that’s changing with the introduction of a centralized government loan scheme, known as NELFUND.

🎯 What Is NELFUND?

NELFUND stands for the Nigerian Education Loan Fund, a financial scheme launched by the Federal Government under President Bola Ahmed Tinubu in 2023 and operational from mid-2024.

NELFUND aims to:

• Provide interest-free or low-interest loans to students in public tertiary institutions

• Cover tuition fees, books, and upkeep allowances

• Target students from low-income and middle-income backgrounds

• Support students at universities, polytechnics, and colleges of education

🏛️ Legal Backing

The Student Loan (Access to Higher Education) Act, 2023, governs NELFUND. Lawmakers amended it in 2024 to remove guarantor requirements and introduce a need-based model. This made the loan scheme more inclusive and less bureaucratic.

📌 Features of the Student Loan in Nigeria (NELFUND)

🧑‍🎓 Who Is Eligible for Student Loans in Nigeria?

To qualify for the NELFUND loan, applicants must:

1. Be a Nigerian citizen

2. Gain admission into a federal or state university, polytechnic, or college of education.

3. Come from a family with an annual income less than ₦500,000

4. Have a National Identification Number (NIN)

5. Have a Bank Verification Number (BVN)

6. Maintain satisfactory academic standing (not under disciplinary action or repeated academic failure)

🔄 Repayment Terms

Repayment depends on the borrower’s income and employment status. Borrowers typically start repaying once they begin earning:

• Two years after NYSC

• If employed, 10% of monthly salary will be automatically deducted by employer and remitted to NELFUND

• Self-employed graduates must remit an agreed monthly amount and provide company registration documents

Note: There are no penalties for early repayment, and the loans are interest-free.

student loan

🖥️ How to Apply for NELFUND Student Loan in Nigeria

Applying for the student loan is straightforward and digital. Here’s a step-by-step guide:

 1: Visit the Portal

Go to the official NELFUND portal:
👉 https://nelf.gov.ng

2: Create a Profile

• Use your BVN, NIN, and JAMB registration number

• Upload a valid school admission letter and school fees schedule

3: Complete the Application

• Fill in personal and academic information

• Specify the amount requested

• Provide evidence of parents’ or guardians’ income status (e.g., tax records, affidavit)

 4: Submit & Await Approval

• After successful verification, the tuition is paid directly to the school, while upkeep will be transferred to your bank account

📊 How Much Can You Get?

The amount disbursed depends on:

• Institution’s tuition fee (up to full tuition covered)

• Maintenance allowance (to begin rollout in 2025)

• Length of programme

Some estimates suggest ₦300,000 to ₦1 million per academic year may be disbursed based on course, school, and location.

✅ Benefits of the Student Loan Scheme

1. Access to education: Enables low-income students to attend tertiary institutions without financial stress

2. No interest: Loans are completely interest-free

3. No guarantors or collateral

4. Digital and transparent application system

5. Nationwide coverage, including for state schools

⚠️ Challenges and Criticisms

While NELFUND is a massive step forward, some challenges remain:

• Exclusion of private school students (only federal and state institutions are covered)

• Verification delays due to manual processes in schools

• Concerns over funding sustainability

• Possible job market mismatch affecting repayment ability

Efforts are ongoing to address these issues, especially with the planned expansion of the loan to private tertiary institutions and skill-based learning centers in 2026.

🗞️ Latest Updates (As of August 2025)

• Over 215,000 students have benefited since the programme’s launch

• ₦22.7 billion has been disbursed for tuition payments

• The Federal Ministry of Education has directed all schools to integrate loan verification desks

• A mobile app version of the loan portal is set to launch by November 2025

📣 Tips for Successful Loan Application

1. Apply early before school registration deadlines

2. Ensure your BVN, NIN, and admission details match

3. Use a functional email address and phone number

4. Keep a copy of your submitted application

5. Confirm your school is accredited and listed under NELFUND

📘 Frequently Asked Questions (FAQs)

❓ Is the NELFUND student loan available for postgraduate students?

Currently, no. Only undergraduate students in public institutions are eligible.

❓ Can I apply for both tuition and upkeep loans?

Yes. Tuition loans are live; upkeep loan disbursement begins from 2025/2026 academic session.

❓ What if I am unable to repay the loan after graduation?

Repayment begins only when you start earning. The loan is income-contingent, and default penalties only apply after wilful evasion.

❓ Can private university students apply?

No. However, expansion plans are underway to include private tertiary institutions in future phases.

🧭 What’s the Future of Student Loans in Nigeria?

NELFUND is not just a loan scheme; it’s part of a broader social investment programme to improve human capital development in Nigeria. The long-term goal is to:

• Increase the number of graduates

• Reduce youth unemployment

• Support vocational and technical education

• Reduce the burden of education financing on families

With greater funding, automation, and awareness, the future looks promising for students who seek quality education without financial constraints.