How To Apply and Get Student Loan From NELFUND

Are you a student and you need money to further your tertiary(university) education?, worry no more because the federal government got you covered courtesy the NELFUND scheme, with that you can get funds to sponsor your university education from the Federal government, only to pay back 2 years after your NYSC without any interest, sounds great right?, continue reading to learn how to apply for free online.

NELFUND stands for Nigerian Education Loan Fund, NELFUND was established by the Access to Higher Education Act of 2024. This is to provide interest-free education loans to Nigerians in tertiary institutions nationwide, as promised by the President Bola Ahmed Tinubu to ensure that every Nigerian child has access to education.

The Access to Higher Education Act of 2024 replaces the 2023 Student Loan bill, as the new legislation addresses the drawbacks while introducing more comprehensive coverage for students.

This Act of 2024 mandates the creation of Nelfund, a corporate body saddled with managing and disbursing loans for eligible Nigerian students. The fund will cover tuition, fees, and living expenses for students in public tertiary institutions and vocational training within Nigeria.

Step-By-Step Guide To Apply For Nelfund Student Loan

Here are the steps to apply for the loan:

Step 1: Verify Your Eligibility And Gather Necessary Documents

You must confirm if you meet all the eligibility criteria stated above. This enables you to know the next step to take. You must also ensure that your institution has uploaded your data on the Nelfund portal.

After you have confirmed your eligibility for the loan application, you need to gather all necessary documents, such as an admission letter, BVN, NIN, and student matriculation or registration number.

Eligibility Criteria For Nelfund Student Loan

You must meet certain criteria before you can qualify for the student loan. These are:

• Only Nigerian citizens are eligible to apply for the loan.
• Students must have an enrolment in recognized public tertiary institutions, such as universities, polytechnics, colleges of education, and vocational schools within Nigeria.
• You must ensure that your institution uploads your data onto the Nelfund portal to qualify you for the loan.

Required Documents For The Loan Application

You must prepare some major documents to complete the loan application process. These are:

• JAMB admission letter, which will be proof of your admission into the institution.
• National Identification Number (NIN).
• Bank Verification Number (BVN).
• Student matriculation or registration number.

Step 2: Access The Nelfund Online Portal

Click here to Visit the official Nelfund website and create an account using your email address and a secure password. But you have an existing account; you can log in with your details.

Step 3: Complete the Nelfund Application Form

You must provide your personal information, such as name, date of birth, and contact details. Then, fill out the academic information by entering your institution’s name, course of study, and year of study. You must also clearly state your financial situation, explaining why you need the loan.

Step 4: Upload The Required Documents

Proceed to upload clear and legible copies of the required documents. Ensure you upload the documents correctly and match the required size and format specifications.

Step 5: Review And Submit Your Application

Review all the information you’ve provided to ensure their accuracy and completion. You can then submit your application. You will receive a confirmation email with further instructions on the next steps.

Step 6: Await Processing And Approval

Nelfund will review your application after submission, an automated process to ensure fairness and transparency. After verification, NELFUND will pay your tuition directly to your institution, while the upkeep loan will be sent to your bank account.

Major Provisions For The Nelfund Student Loan

There are some provisions designed for students applying for the loan. These are:

• Repayment Terms: Repayment of the loan begins two (2) years after completing the compulsory National Youth Service Corps (NYSC) program. 10% of the beneficiary’s salary will be deducted until the full repayment of the loan.
• Loan Forgiveness: There is a clause for debt forgiveness in the loan. This comes to a place in the event of permanent disability or death, ensuring that the student’s family does not shoulder the debt burden.
• Hardship Considerations: Beneficiaries can appeal for an extension for loan repayment if they find it difficult to secure employment post-NYSC. They must submit an affidavit and additional evidence of their situation.
• Penalties For False Information: The provision of false information during application is deemed a serious offence that can result in a three-year prison sentence.

Frequently Asked Questions (FAQs) About Nelfund Student Loan

Can I Access The Nelfund Student Loan While Schooling Abroad?

No, student loans are unavailable to Nigerian students who are schooling abroad. You must be a Nigerian student who is schooling in a public tertiary institution or vocational college to become eligible for the loan.

Will The Nelfund Loan Be Paid Into My Personal Account?

The Nelfund will disburse the loan directly to your institution to cover your tuition. However, you will receive a monthly upkeep allowance of N20,000 directly in your personal account if you include it in the application.

How Can I Apply For The Nelfund Student Loan Online?

You can apply for the loan by visiting the official website of Nelfund and providing your personal information and required documents like JAMB admission letter, BVN, NIN, and matriculation or registration number.

When Will I Start Repaying The Student Loan?

You will start repaying the loan two (2) years post-NYSC. 10% will be deducted from your salary until the repayment is complete.