By Isaac Atunlute
The growing educational sector in Nigeria continues to confront a major challenge–the steep cost of higher education. To ease the financial burden, student loan programmes have been introduced in recent years.
The most notable initiative is the Nigerian Education Loan Fund (NELFUND) established by the Student Loans (Access to Tertiary Education) Act 2024, to render financial assistance to undergraduates in federal tertiary institutions.
As of now, the program covers 126 institutions, comprising universities, polytechnics, colleges of education and vocational schools.
Outside of NELFUNDs, several states have created their own loan schemes. For instance, Bayelsa State established the Bayelsa State Student Loan Board, which provides loans to eligible students using their academic certificates as collateral. These initiatives underscore the growing commitment of the government to invest in human capital development
Eligibility and Application Process
To qualify for a NELFUND loan, applicants must be a Nigerian enrolled in an approved federal institution of higher learning.
The application process is straightforward:
- Visit the official NELFUND portal at www.nelf.gov.ng
- Click on “Apply Now” and follow the prompts to verify your student status using your matriculation number and JAMB details.
- Register with a valid email address and password.
- Fill in the application form carefully and ensure to upload requisite documents such as your admission letters and valid identification.
Recent legislative updates have eliminated previous requirements, such as proof of income and guarantors, making the loans more accessible.
Disbursement and Repayment.
On approval, NELFUND pays 100% of the fees to institutions directly. Additionally, the student receives monthly stipends to cover living expenses during the session.
Repayment commences two years after the completion of the National Youth Service Corps (NYSC). The loan is repaid by paying 10% of whatever they earn as a monthly salary, and this is made in a structured way, making it easier for graduates to meet their obligations without undue financial stress.
Alternative financing options.
Aside from government-backed loans, several Nigerian banks also offer student financing facilities:
- Access Bank: Up to ₦5 million in tuition and related expenses.
- First Bank (FirstEdu Loan): Provides a loan facility of up to ₦10 million.
- GTBank (School Fees Advance): Covers domestic and international tuition with loans of up to ₦5 million.
- UBA Edu Loan: Provides up to ₦5 million to cover school expenses.
- Zenith Bank Education Loan: Offers loans of up to ₦7 million at competitive interest rates.
While requirements vary among the institutions, common prerequisites include an admission letter, a statement of tuition, and valid identification.
Conclusion.
The financial needs of Nigerian higher studies can be handled more appropriately by government intervention and making use of the private sector. Such loan facilities to students can make would-be candidates focus on studies without worrying about financial constraint.
The high cost of higher education in Nigeria is being addressed through student loan programs like the Nigerian Education Loan Fund (NELFUND), established by the Student Loans (Access to Tertiary Education) Act 2024. NELFUND aids undergraduates in federal tertiary institutions, covering 126 institutions including universities, polytechnics, colleges of education, and vocational schools. Various states like Bayelsa have also created their loan schemes using academic certificates as collateral.
To qualify for a NELFUND loan, applicants must be Nigerian students enrolled in approved institutions. The application process involves verifying student status and submitting necessary documents online. Recent changes have made the loans more accessible by eliminating the need for proof of income and guarantors. On approval, NELFUND pays tuition directly to institutions and provides students with monthly stipends, with repayment starting two years after their National Youth Service Corps (NYSC) completion at 10% of their monthly salary.
Besides government-backed loans, Nigerian banks such as Access Bank, First Bank, GTBank, UBA, and Zenith Bank offer student loans ranging from ₦5 million to ₦10 million, with varying prerequisites like admission letters and valid identification. These financial solutions enable students to focus on their studies without worrying about financial constraints.
