As regards the Nigerian Education Loan Fund (NELFUND), a lot of students have been asking quite several questions as regards their student loan application.
Therefore, having reached out to the Nigerian Education Loan Fund (NELFUND) officials, the Dailylight channel has compiled 25+ Frequently Asked Questions and appropriate answers.
PAY ATTENTION: Get daily updates on scholarships, jobs, relevant news updates, crypto news, and business trends. Follow us on Twitter and never miss an opportunity!
1. What is the Students Loans (Access to Higher Education) Act, 2024?
The Student’s Loan Act is an Act of the Parliament introduced by the federal government of Nigeria, President Bola Ahmed Tinubu that makes it possible for Nigerian students across Nigerian institutions to access zero interest loans to enable them pay for institutional fees and upkeep within Nigeria.
2. Is the Student’s Loan the same as the Nigerian Education Bank?
This is a capital No. The Student’s Loan Act has cancelled the Nigerian Education Bank Act and reintroduce a framework for providing zero interest loans to qualified and eligible Nigerian students who desire to study at any institution of higher education.
3. Who administers the loans to the students?
The Nigerian Education Loan Fund (NELFUND), which was created by legislation to handle the Fund's daily operations, will administer the loans. The Nigerian president appoints a Managing Director to oversee it.
Related stories
4. Is the loan open to all tertiary institutions?
All public tertiary institutions are eligible for the loan. Only students enrolled in or intending to enroll in federal and state higher education institutions in Nigeria are eligible for the first part of the loan. The announcement of the remaining stages will follow.
5. Who is eligible to apply for loans under this Act?
Students who have been accepted into any of the public universities, polytechnics, educational institutions, or vocational schools in Nigeria with a proof of admission that contains their name, birthdate, admission, JAMB number, matriculation number, and BVN.
As mentioned above, the loan is available to all current and prospective students at the institution.
6. Can a Direct Entry Student into higher institutions apply for the loan?
Yes, but such a student must have a JAMB registration number
7. Will the loan be available for all students or only applicants?
The loan is available to all full-time students, but it will only benefit those who apply.
SEE ALSO: Important Student Loan Terms and Conditions You Need to Know
8. How much loan are students allowed to apply for?
The institutional head of each institution would decide that. If the student needs maintenance, the loan will pay for it. The applicants will get recurring payments for upkeep, and the institutional fees will be sent straight to their respective institutions.
9. Will the applicant be required to make any payment before the loan is disbursed?
You are expected to pay any amount of money before the disbursement of the fund
10. Is there an interest payable on the loan?
There is no interest attached to the loan. It is a zero-interest loan.
Top scholarship opportunities
11. Is the loan open to every student?
Yes, the loan is open to all Nigerian students in the tertiary institution.
12. How are loan applications processed, and what is the disbursement timeline?
All applications are processed online. All applicants are expected to submit all the required personal details including:
- Name of Institution of study
- Admission Number
- JAMB Number
- Date of Birth
- NIN
- BVN
NELFUND will disburse within 30 days of approval of successful applications.
PAY ATTENTION: Get exclusive scholarship updates, jobs, crypto news, and business trends. Follow our WhatsApp channel to stay informed!
13. Is there an age limit for applicants?
No. There is no age limit.
14. Who is responsible for the loan repayment?
The loan will be repaid by the beneficiary.
15. Is the loan applied for only once?
The student will apply for the loan for each academic term.
16. How do applicants know their application is approved?
Applicants will be notified, and their portal profile will display the loan application's current status.
17. When is the loan due for repayment?
The loan must be repaid two years following NYSC completion.
18. What happens if a beneficiary does not have a job after two years post-NYSC?
If the beneficiary is still unable to find work two years after NYSC, they must notify NELFUND by sworn court affidavit every three months.
19. How will the loan repayment process work?
The employer will remove ten percent (10%) of the beneficiary's pay at source. Beneficiaries who work for themselves must send 10% of their monthly earnings to the Fund.
You are free to ask your employers or, if you work for yourself, to repay more than the required 10% monthly repayment.
SEE ALSO: 10 Mistakes to Avoid When Applying for NELFUND Student Loan 2024 (And How to Fix Them)
20. What if I have the money to pay back before I get a job
You can pay it back as soon as you obtain the funds, even before you start working.
21. How do I repay when I am relocating abroad?
You will get in touch with the NELFUND and sign a repayment agreement.
22. Do students require a guarantor to access the loan?
There is no need for a guarantor.
23. What are the consequences of defaulting on the loan?
Intentional default may lead to fines, legal action, and possible harm to your credit rating.
24. Is there any appeal process when an application is denied?
You can file a complaint using the portal or by emailing the NELFUND.
25. Are there any documents to upload during the application process?
Indeed. scanned student identification card (optional), and scanned admission letter (required) for new students.
26. Under what circumstances would NELFUND deny an application?
If the applicant in question is:
• Confirmed to have fallen behind on any prior loan from a licensed financial institution;
• Reprimanded by any educational authority for exam misconduct and found guilty of providing fraudulent or fictitious documentation; and
• Found guilty of drug offenses, cultism, fraud and forgeries, felonies, or any other offense involving dishonesty.