The Nigerian Education Loan Fund (NELFUND) is still offering students in tertiary institutions financial support through a zero-interest loan. The fund, managed by the Nigerian government, is disbursing N20,000 monthly stipends to students from public institutions. This initiative is designed to assist students in covering their school fees and daily upkeep without interest fees.
According to the Director of NELFUND, students from various higher institutions across Nigeria are invited to apply for this loan, which is aimed at easing the financial pressures faced by students. With no interest attached, the NELFUND loan offers a lifeline for students struggling to meet the costs of their education. The NELFUND portal is open for applications, and students who qualify are encouraged to take advantage of this opportunity.
The NELFUND Student Loan programme is in line with the Student’s Loan Act, which allows Nigerian students access to government-backed loans without any interest for institutional fees and living expenses. New institutions are constantly being added to the list of eligible schools to ensure that more students can benefit from this programme.
However, while this is a loan, not a grant, the repayment terms are favourable. Students will only be required to start repaying the loan two years after completing their National Youth Service Corps (NYSC) programme.
Eligibility Criteria
All full-time students enrolled in public higher institutions in Nigeria are eligible to apply, provided they meet the following criteria:
- The student must have secured admission into a public university, polytechnic, college of education, or vocational school in Nigeria.
- Applicants are required to provide proof of admission, which includes Full Name, Date of Birth, Admission Letter, Joint Admissions and Matriculation Board (JAMB) number, Matriculation number, and Bank Verification Number (BVN).
- There is no restriction on the age of applicants.
- Both new and existing students in the above-mentioned institutions can apply for the loan. Direct entry students are also eligible, but they must provide their JAMB number.
- New students will submit a scanned copy of the admission letter, while a scanned copy of the student identification card is optional.
How to Apply
Interested students can visit the official NELFUND website at https://nelf.gov.ng and click on the “APPLY NOW” button, or go directly to the application portal at https://portal.nelf.gov.ng and complete the online application form by entering personal information such as:
- Full Name,
- Institution of Study
- Admission or Matriculation Number
- JAMB Number
- Date of Birth
- National Identification Number (NIN)
- BVN (Bank Verification Number)
After filling out the form, submit the application to create an account. Once the application is submitted, students will receive a notification on the status of their loan application. The progress of the loan disbursement can also be tracked through the applicant’s profile on the portal. Approved loans will be disbursed within 30 days, and no payment is required before the disbursement of funds.
The NELFUND loan is a support fund for students without any financial pressure through interest payments. The loan will cover both institutional charges and, if needed, upkeep for the student. While the institutional charges are sent directly to the student’s school, upkeep money is paid to the student in monthly instalments. The amount disbursed depends on the student’s institutional charges and financial needs.
Once a student completes their NYSC, they have a grace period of two years before repayment of the loan begins. If after this period a student is still unable to find employment, they are required to notify NELFUND with a sworn court affidavit every three months. Repayment can begin as soon as the student has the financial means, even before securing formal employment. It is worth noting that a deliberate default in repayment could lead to penalties, legal action, and damage to the beneficiary’s credit score.
The federal government has also made an attempt to simplify the repayment process by making sure that employed beneficiaries will have 10% of their salary deducted directly by their employer. For those who are self-employed, 10% of their monthly profit must be remitted to NELFUND. Beneficiaries can also choose to pay more than the required 10% if they are able and willing to do so.
Ongoing Disbursement and Future Phases
Currently, NELFUND is disbursing funds in phases. The present batch of students, particularly those in institutions where fees have already been paid, have received their upkeep stipends. The loan disbursement is only available to students in federal higher institutions, but more phases and institutions will be included as the programme expands. Students are encouraged to keep checking the NELFUND portal for updates on when their institutions will be added to the list of eligible schools.
Students from institutions whose fees have already been paid by NELFUND are currently receiving their monthly stipends. All other eligible students can expect their stipends on a monthly basis once their applications are approved.
Students are advised to apply as soon as possible to avoid delays in receiving their stipends. For more information, applicants can visit the official NELFUND website and follow the application instructions carefully.
I pray this is real