Introduction
Education is a powerful tool for national development, but in Nigeria, many young people are unable to access higher education due to financial constraints. To address this issue, the Federal Government of Nigeria established the Nigerian Education Loan Fund (NELFUND)—an interest-free student loan initiative aimed at making tertiary education accessible to all qualified Nigerian students.
NELFUND launched the student loan in 2024 to provide financial assistance to students in public tertiary and vocational institutions. This blog post offers a detailed overview of the NELFUND scheme, including its benefits, eligibility criteria, how to apply, and everything else you need to know.
nelfund student loan
What Is the NELFUND Student Loan?
The Nigerian Education Loan Fund (NELFUND) is a government-backed initiative that provides interest-free loans to students studying in public universities, polytechnics, colleges of education, and vocational institutions across Nigeria. The Federal Government introduced the scheme through the Student Loans (Access to Higher Education) Act, which President Bola Ahmed Tinubu signed into law on April 3, 2024.
NELFUND operates as an independent body responsible for administering and disbursing student loans to eligible Nigerian students. It aims to remove financial obstacles and promote equal access to education.
Objectives of the NELFUND Scheme
To ensure no Nigerian student is denied access to tertiary education due to lack of funds.
To promote inclusive education and reduce the dropout rate in public higher institutions.
To offer a sustainable and interest-free financing model for students.
To support the Federal Government’s goal of expanding access to quality education.
Who Is Eligible for the NELFUND Student Loan?
To apply for the NELFUND loan, applicants must meet the following eligibility requirements:
Be a citizen of Nigeria.
Gain admission into a public tertiary institution (university, polytechnic, college of education) or an approved vocational school in Nigeria.
Have a valid JAMB registration number.
Possess a National Identification Number (NIN).
Provide Bank Verification Number (BVN).
Not be in default of any other government loan or convicted of exam malpractice or felony.
nelfund student loan
What Does the NELFUND Loan Cover?
The NELFUND student loan covers:
Tuition fees: Paid directly to the student’s institution.
Upkeep allowance (optional): A monthly stipend to support feeding, books, and other living expenses during the academic session.
This ensures that students not only pay their school fees but also have the financial means to remain in school and focus on their studies.
How to Apply for NELFUND Student Loan (Step-by-Step Guide)
Applying for the NELFUND student loan is done entirely online through the official portal: https://portal.nelf.gov.ng
Step 1: Visit the Official Portal
Go to https://portal.nelf.gov.ng and click on the “Apply Now” button.
Step 2: Confirm Eligibility
You will be prompted to verify your eligibility using your JAMB number and date of birth.
Step 3: Create an Account
Sign up with a valid email address and create a password.
Step 4: Complete Your Profile
Provide accurate details including:
Personal information (Name, NIN, BVN)
Academic information (Institution, program of study, admission letter)
Bank details
Step 5: Choose Loan Type
Select the type of loan you want to apply for:
Tuition Only
Tuition + Upkeep Allowance
Step 6: Upload Supporting Documents
Upload necessary documents such as:
Admission letter
Student ID card
School invoice (if applicable)
Step 7: Accept Terms and Submit
Agree to the Global Standing Instruction (GSI) terms, which authorize the deduction of repayments directly from your bank account after graduation. Submit your application and wait for approval.
Disbursement Timeline
Once approved, the loan is disbursed in two parts:
Tuition fees are sent directly to the student’s institution.
Upkeep allowance, if selected, is credited monthly to the student’s personal bank account.
As of early 2025, over ₦22.7 billion has been disbursed to more than 215,000 students across Nigerian public tertiary institutions.
Repayment Plan and Schedule
The NELFUND loan repayment is structured to be:
Interest-free
Income-based
Flexible and graduate-friendly
Repayment Begins
Two years after completion of the NYSC (National Youth Service Corps).
Deductions will be made only after the graduate has gained employment.
The Global Standing Instruction (GSI) allows the government to deduct repayments from the graduate’s salary or bank account once employed. This ensures a stress-free and efficient collection system.
Benefits of the NELFUND Student Loan
✅ 1. Interest-Free
Unlike commercial loans, students repay only the principal amount. This drastically reduces the financial burden after graduation.
✅ 2. Simple Application Process
The loan can be applied for in less than 30 minutes through a user-friendly online platform.
✅ 3. Flexible Repayment
Graduates are given a grace period of two years after NYSC before repayment begins.
✅ 4. Promotes Equal Access
This initiative ensures that students from economically disadvantaged backgrounds have the same opportunities to pursue higher education.
✅ 5. Supports Academic Continuity
By providing both tuition and upkeep, students can focus on their studies without the pressure of financial constraints.
Challenges and Limitations
While the NELFUND scheme is a major step forward, there are still some concerns:
Exclusion of private institutions limits access for some students.
Awareness among rural or low-income families remains low.
Risk of default if graduates are unable to secure employment on time.
Technical glitches and traffic on the portal may delay the application process.
Frequently Asked Questions (FAQs)
Is the NELFUND loan interest-free?
Yes. The loan is 100% interest-free. You only pay back the amount borrowed, not a kobo more.
Can I apply if I’m in a private university?
No. The scheme currently supports only students in public tertiary and vocational institutions.
Do I need a guarantor to apply?
No. The current application process does not require a guarantor.
What happens if I don’t repay?
After you gain employment, the Global Standing Instruction deducts repayments directly from your bank account or salary.
How often is upkeep allowance paid?
If selected during the application, you receive monthly upkeep during the academic session
Conclusion
The NELFUND Student Loan is a transformative policy that is changing the face of education in Nigeria. By offering interest-free, accessible, and flexible loans, the Federal Government is helping students overcome one of the biggest barriers to education—funding.
If you are a student in a public tertiary or vocational institution, don’t let financial challenges hold you back. Visit https://portal.nelf.gov.ng today and take advantage of this golden opportunity to finance your education and secure your future.
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