Maybe your school fees are due, your portal is almost closing, and your parents are already stressed financially with no hope of raising funds for you as quickly as you want.
And you are searching for how to apply for a student loan. If that’s the situation you’re in right now, then this article is what you need to read, because the solution is here.
As we speak, the Federal Government of Nigeria has provided a student loan program that is running right now specifically for Nigerian students in tertiary institutions.
If you haven’t heard about it or you have but don’t fully understand how it works and how to apply, then read this carefully.
The federal government student loan is called NELFUND, and it is the best financial intervention to help Nigerian students to settle their school fees without financial drama.
This article will discuss student loans in a very detailed way, including how to apply, how to qualify for the loan, how much money you’ll get, and what happens when it’s time to pay back.
What Is the NELFUND Student Loan?
NELFUND stands for Nigerian Education Loan Fund. It’s a Federal Government intervention scheme that provides interest-free loans to Nigerian students in tertiary institutions.
The scheme was established through the Student Loans (Access to Higher Education) Act, and President Bola Tinubu formally signed it into law on April 3, 2024.
This loan is popular known among students as “the Tinubu student loan”
The best part of this loan is that it is a zero interest loan, meaning, you will not have to pay interest for the loan.
For example, if they give you ₦300,000 today, you will pay back exactly ₦300,000 later when the loan is overdue with zero extra charges.
Check your Loan eligibility: Loan Eligibility Checker
What Does the NELFUND Student Loan Actually Cover?
NELFUND student loan covers two things. It covers 100% of tuition fees and provides a N20,000 monthly living stipends for eligible Nigerian students.
Let’s break it down:
1. Your School Fees (Institutional Charges)
Whatever your tuition is for that session, NELFUND pays it directly to your school. This particular fee doesn’t come directly to you.
The fees goes straight from NELFUND to your institution’s account, and then your school issues you a receipt and clears you for that academic session.
2. Monthly Upkeep Allowance
This is the part a lot of students don’t know about. Most beneficiaries of the NELFUND don’t even know about this particular one.
In addition to your school fees, NELFUND also gives ₦20,000 every month as a living allowance to NELFUND beneficiaries.
So let’s say your school fee is ₦250,000 per session and the session runs for 10 months. That’s means NELFUND will send ₦250,000 to your institution and you’ll receive up to ₦200,000 for upkeep which will be paid monthly.
Note: The upkeep stipend is not activated automatically, it is optional, so interested students will have to apply for it separately.
So applicants are free to choose whether to apply for tuition only, or apply for both. Also, this loan doesn’t automatically renew for each session. So interested students have to keep reapplying every academic session.
Who Can Apply for the NELFUND Student Loan?
The NELFUND student loan is only for specific set of students that meet the following:
- Applicant must be legal citizen of Nigeria by birth, as defined under the 1999 Constitution.
- Applicant must be an existing student in a public tertiary institutions (either federal university, state university, polytechnic, or college of education)
- Applicant must be a full-time student.
- You must have a valid means of Identity
- You must present your NIN, BVN, and JAMB registration number for verification your identity across government databases.
- Your institution must register and upload your details (student record) on the NELFUND platform.
Note: Returning students must have at least a 50% pass rate to maintain eligibility.
If your school doesn’t upload your records to NELFUND portal, then your application may not be successful
Students in private universities are not covered under NELFUND yet
Part-time students are not qualified for this offer
Documents Needed for Student Loan Application
Do well to get the following documents ready before you head out the NELFUND portal to apply:
- NIN (National Identity Number)
- BVN (Bank Verification Number)
- Your JAMB registration number
- Scanned copy of your admission letter (only compulsory for new students)
- Your student ID card (optional)
- A personal bank account that matches your information
How to Apply for Student Loan in Nigeria
The application procedure for the federal government student loan is online via the NELFUND portal. Follow these steps:
Step 1: Visit the official NELFUND website
- Go to www.nelf.gov.ng
Step 2: Click “Apply Now”
Click the apply now button on the homepage and it will take you into the application portal.
Step 3: Confirm your Nigerian citizenship
The portal will ask you some basic questions. Verify your citizenship by indicating that you’re a Nigerian citizen and continue.
Step 4: Verify your school enrollment
Select your institution from the dropdown list and enter your registration number. The system will automatically use your registration number to confirm your details from your school
Step 5: Verify with JAMB
Next, enter your JAMB registration details and the system will automatically cross-checks your admission status in the national JAMB database.
Step 6: Create your account
- Next is to fill in your email address
- create a password, and confirm it,
- click on “Create Account” to proceed
- Now go to your email inbox and check for a verification link and click it.
Step 7: Complete your profile
Now, go back to the portal and login
- Fill in your contact details which include phone number, residential address, state, and local government area
- Save your changes and proceed.
- Upload your admission letter and any other documents required.
Step 8: Request the loan
- Click on “Request for Student Loan” at the top right of your dashboard.
- Select that checkbox if you want the upkeep allowance as well as
Step 9: Submit and track your application
- Submit your application
- After submission, go to the “Loans” section of your dashboard to monitor your status.
- If approved, you’ll see it there. If something needs fixing, NELFUND will contact you through any suitable channel
Frequently Asked Questions
How Does the Money Get to You?
NELFUND will pay your school fee directly to your school. All tuition and school related fees are paid straight to your institution’s account.
If you indicated interest for the upkeep allowance then that one will be sent directly to your bank account.
When Will You Pay Back the Student Loan?
According to NELFUND, the student loan repayment start two years after you complete your NYSC. They believe by then, you should already be earning.
Once your repayment is activated, 10% of your monthly salary will be automatically deducted and remitted to NELFUND. The deduction is to be handled by your employer, similar to how tax works.
For people that are unemployed after the two years, you are expected to submit a sworn affidavit every three months to confirm your employment status until you get a job.
People who have enough money can also choose to repay the full loan at once.
Is NELFUND loan interest free?
Yes, the student loan is 100% interest-free. So you’ll only gave to pay back exactly what you borrowed.
Can postgraduate students apply for NELFUND?
Not yet. This student loan is currently for undergraduates only, although the government has mentioned plans to expand it to postgraduate students in the future.
Can Private University Students Benefit from student loan?
No! The student loan is currently for students public federal and state institutions.
How long does student loan approval take?
The approval takes between one to six months depending on the processing speed of your institution.
See Also: Best Loan Apps for Students in Nigeria
Conclusion
The NELFUND student loan is sponsored by Federal Government of Nigeria with zero interest, no collateral, no guarantor, and repayment starts two years after NYSC for employed student.
According to NELFUND, over ₦56 billion has already been disbursed to nearly 300,000 students nationwide. To apply, visit nelf.gov.ng and start the process.
