The Nigerian government has announced that only students attending public universities, polytechnics, and other tertiary institutions will be eligible for the student loan in the first phase. According to the Managing Director of Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, approximately 1.2 million students nationwide will be accommodated in this initial phase.
The loan application process has been streamlined to ensure easy access for all eligible students in federal tertiary institutions, with prospective applicants able to begin their application process starting from May 24, 2024. The loan is available to all students in government tertiary institutions and will be rolled out in phases, starting with federal institutions before extending to state institutions.
The initiative is a key component of President Bola Ahmed Tinubu’s Renewed Hope Agenda, aimed at providing financial assistance to needy students, enabling them to pursue their educational goals without immediate financial constraints. The interest-free loan program offers flexible repayment options, commencing two years after completing the National Youth Service Corps (NYSC), provided the individual has secured employment.
The Fund will pay 100% of institutional fees directly to the institutions of learning and provide stipends to students monthly based on the time school is in session. Key features of the student loan include no physical contact between the loan applicant and NELFUND, a user-friendly Loan Application portal, comprehensive support, and affordable and flexible repayment plans.
Students in federal institutions are encouraged to take advantage of this opportunity to secure financial assistance for their education, with applications submitted as early as possible to ensure timely processing. The government is also working with insurance companies and security agencies to address any potential loan defaults or fraudulent activities. Notably, the Act providing the scheme does not require Next of Kin or Collateral, but institutions must upload students’ data and register them to access the loan.
