The Nelfund Student Loan has come to make access to higher education easy for Nigerians by providing interest-free fund. The interest-free loan by the Nigeria government is an initiative designed to support individuals who aspire to pursue education in recognized institutions across the country.
The student loan program is intended to ease the financial burden on students and their families. It enables them to focus on their studies and achieve their academic goals.
In this post, I will walk you through the steps to apply for Nelfund student loan, I will also show you all details about requirements, repayment terms, and more.
First, let’s know about NELFUND
What is Nelfund?
The Nigerian Education Loan Fund (NELFUND) is a government initiative established under the Student Loans (Access to Higher Education) Act of 2024. Its primary purpose is to provide interest-free loans to Nigerian students enrolled in public tertiary institutions, including federal and state universities, polytechnics, and colleges of education.
This program aims to remove financial barriers, ensuring that all qualified Nigerians have access to higher education. The application process is streamlined through an online portal, this allows students to apply efficiently.
Repayment of the loan begins two years after completing the National Youth Service Corps (NYSC) program, with terms designed to accommodate graduates’ financial situations.
Nelfund Loan Requirements
To qualify for the NELFUND student loan, you need to meet the following requirements:
- Nigerian Citizenship: you must be citizens of Nigeria.
- Admission Status: Enrollment in a federal or state tertiary institution is mandatory.
- Academic Standing: Students should maintain satisfactory academic performance as defined by their institutions.
- Financial Need: You must show a genuine need for financial assistance. More details on this later.
Other Required Documents
You also need the following documents:
- Your Admission Letter
- Your NIN
- Your BVN
- Your matriculation number and department
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How to Apply for Federal Government Grant and Loan (Application Portal)
Nelfund Portal Opens for 2025 Application
The application cycle for the 2024/2025 academic session opens on February 22, 2025. Prospective applicants are encouraged to prepare and submit their applications promptly to ensure timely processing. The entire application process is conducted online, ensuring convenience and efficiency.
How to Apply for NELFUND Student Loan
Follow these steps to apply for the NELFUND student loan:
- Access the official portal at nelf.gov.ng.
- Register using a valid email address and create a secure password.
- Provide accurate personal, academic, and financial information.
- Upload Required Documents. Ensure all documents are clear and legible before uploading.
- Double-check all information for accuracy before submission.
- After submission, a confirmation email with further instructions will be sent to you.
Disbursement Details
Approved loans are disbursed directly to the student’s institution to cover tuition fees. Funds are allocated per academic session, and students must reapply for each new session.
Additionally, upkeep allowances are provided to assist with living expenses. As of February 2025, NELFUND has disbursed over N22 billion to 215,514 students and provided N12.8 billion in upkeep support to 169,114 students
Nelfund Student Loan FAQs
How long does it take for NELFUND to approve a student loan?
The approval timeline for NELFUND student loans varies based on application volume and verification processes. While specific durations aren’t publicly detailed, applicants are encouraged to monitor their application status through the official NELFUND portal for updates.
Has NELFUND started disbursement?
Yes, NELFUND commenced disbursements in August 2024. As of September 2024, over N5.36 billion had been allocated to 59 institutions, benefiting more than 27,667 students. Disbursements are ongoing to support eligible students across Nigeria.
Read This: How to Apply for FG Conditional Cash Transfer in 2025 (Portal, Login)
What does it mean for your loan to be verified on NELFUND?
A “verified” status indicates that NELFUND has confirmed the accuracy of the information provided in your loan application. This verification is a preliminary step before final approval and disbursement of funds.
Can state university students apply for NELFUND?
Yes, students enrolled in public Nigerian universities, including state universities, are eligible to apply for NELFUND student loans. The program aims to support students across various public tertiary institutions.
How much does NELFUND pay?
The loan amount varies based on institutional fees and individual upkeep needs. Specific figures are determined during the application process and are tailored to cover tuition and necessary living expenses.
Is NELFUND refundable?
Yes, NELFUND loans are repayable. Repayment begins two years after completing the National Youth Service Corps (NYSC) program, with terms designed to accommodate graduates’ financial situations.
How much is the student loan monthly payment?
Monthly repayment amounts are calculated based on the total loan received and the agreed-upon repayment schedule. Specific payment details are provided to each borrower upon entering the repayment phase.
What is the maximum amount for a student loan?
The maximum loan amount is determined by the student’s specific institutional fees and documented upkeep requirements. There isn’t a universally fixed maximum; amounts are assessed on a case-by-case basis.
Can I cancel a NELFUND student loan?
Applicants wishing to cancel their NELFUND student loan should contact the support team promptly to discuss the cancellation process and any implications.
Can Nigerians studying abroad take the Loan?
No. The student loan in Nigeria is solely available to Nigerians who are studying in any higher institutions in Nigeria.
How much is the interest rate on student loans?
According to the student loan act, there’s no interest on the loan. The Federal government established this loan facility to help indigent students get education through interest-free loans.
What happens if I don’t repay?
Failure to repay the Student loan can lead to legal consequences. The law considers non-repayment an offense that may result in a fine of up to N500,000 or a prison sentence of up to two years.
Conclusion
The introduction of the Student Loan Act and the establishment of the Nigerian Education Bank mark significant milestones in Nigeria’s education landscape.
By offering interest-free loans to eligible students, this initiative paves the way for greater accessibility to higher education, particularly for those from economically disadvantaged backgrounds.
However, it is important to note that the student loan is not a grant or free money; it must be repaid according to the specified terms. Non-payment of the loan can have serious consequences, emphasizing the responsibility and commitment that borrowers have toward repaying the funds.
Overall, the student loan program in Nigeria represents a valuable opportunity for students to pursue their educational aspirations and contribute to the nation’s development.
