Student Loan Debt Can Be Cancelled — NELFUND

The Students’ Loans (Access to Higher Education) Act, 2024, signed into law by President Bola Ahmed Tinubu, established the Nigerian Education Loan Fund (NELFUND). The scheme provides zero-interest loans to eligible Nigerian students to cover institutional charges and optional monthly upkeep allowances. Below is a detailed breakdown of how the scheme works, eligibility, repayment rules, and conditions for forgiveness.

What is the Students Loans (Access to Higher Education) Act, 2024?

The Act is a law of Parliament that makes it possible for Nigerian students to access zero-interest loans to pay for institutional charges and upkeep while studying at any higher institution of their choice in Nigeria.

Is the Student Loan the same as the Nigerian Education Bank?

No. The Act repealed the Nigerian Education Bank Act and created a new framework for zero-interest student loans.

Who administers the loans?

The loans are managed by the Nigerian Education Loan Fund (NELFUND), headed by a Managing Director appointed by the President.

Is the loan open to all tertiary institutions?

Yes, but in phases. The first phase is only for federal institutions, while subsequent phases will include other public tertiary institutions.

Who is eligible to apply?

Any student admitted into a public Nigerian university, polytechnic, college of education, or vocational school with valid admission details, JAMB number, matriculation number, and BVN. Both new and existing students are eligible.

Can Direct Entry students apply?

Yes, but they must have a valid JAMB number.

Will all students get the loan automatically?

No. Only students who apply will benefit.

How much can a student borrow?

The loan covers:

• Institutional charges (paid directly to the school).

• Optional monthly upkeep (₦20,000 monthly, paid directly to students).

Do applicants need to pay before disbursement?

No. No upfront payment is required.

Is there interest on the loan?

No. The loan is completely interest-free.

Is the loan open to both new and returning students?

Yes, as long as they are full-time students.

How are applications processed, and how soon is disbursement made?

Applications are done online with details such as admission number, JAMB number, NIN, and BVN. NELFUND disburses within 30 days after approval.

Is there an age limit for applicants?

No.

Who is responsible for repayment?

The beneficiary is solely responsible.

Is the loan applied for once or every year?

Students must apply every academic session.

How will applicants know their loan is approved?

They will receive a notification and can track the status on the NELFUND portal.

When does repayment start?

Repayment begins two years after NYSC.

What if the graduate is unemployed after NYSC?

The graduate must submit a sworn affidavit every 3 months confirming unemployment until employment is secured.

How is repayment done?

• 10% of salary is deducted at source by employers.

• Self-employed beneficiaries must remit 10% of monthly profit.
  Beneficiaries may also choose to repay faster.

Can repayment start earlier than two years?

Yes. Students can repay at any time once they have funds.

How do students repay if relocating abroad?

They must contact NELFUND and sign a repayment agreement.

Is a guarantor required?

No. The scheme has no guarantor requirement.

Can students appeal if their application is denied?

Yes, through the portal complaint system or by emailing NELFUND.

What documents are required for application?

• Scanned admission letter (compulsory).

• Scanned student ID card (optional).

Under what conditions will NELFUND deny an application?

If the applicant:

• Defaulted on a previous loan,

• Submitted fake/fraudulent documents,

• Was dismissed for exam malpractice, or

• Was convicted of fraud, drug offences, cultism, or felony.

Can part-time students apply?

Yes, as long as they have a JAMB

What happens if a student drops out or defers admission?

They must notify NELFUND immediately. Repayment obligations may still apply.

Are there penalties for defaulting?

Yes. Legal action, penalties, and credit score damage may follow deliberate default.

Is there loan forgiveness?

Yes. NELFUND forgives loans in cases of death or permanent disability.

How can students get the monthly upkeep allowance?

By applying for both tuition and upkeep loans together. If a student only applies for tuition, they will not get the upkeep allowance.