Complete NELFUND Student Loan 2025 Application Guide

Overview of the Nelfund Education Student Loan (NELFUND) Programme 

The majority of Nigerians are youths who continue to seek ways to achieve their coveted dreams.

We live in a digital era, and various innovative methods of generating income online have emerged to cater to different needs, including the financial requirements for education. This has prompted the government to contribute to this effort.

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While students may rely on quick loan applications to finance their school-related expenses, the Nigerian Education Loan Fund (Nelfund) was established through the Access to Higher Education Act of 2024. Its purpose is to offer interest-free education loans to Nigerians enrolled in tertiary institutions nationwide.

The Access to Higher Education Act of 2024 supersedes the 2023 Student Loan Bill identifies previous limitations while providing broader support for students.

This 2024 Act mandates the establishment of Nelfund, a corporate entity responsible for the management and distribution of loans to qualified Nigerian students. The fund will support tuition fees, other charges, and living costs for those studying in public tertiary institutions and vocational training throughout Nigeria.

Importantly, Nelfund will be financed partly through a percentage of taxes, levies, and duties collected by the Federal Internal Revenue Service (FIRS). Specifically, 1% of these collections will be allocated to a General Reserve Fund that supports student loans.

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Eligibility Criteria for Nelfund Student Loan Application

To qualify for the student loan, applicants must fulfill specific criteria. These include:

• Only Nigerian citizens can apply for the loan.
• Applicants must be enrolled in accredited public tertiary institutions, such as universities, polytechnics, colleges of education, and vocational schools within Nigeria.

NOTE: Your institution needs to upload your information onto the Nelfund portal to ensure your eligibility for the loan.

As seen from the above if your institution does not upload your information onto Nelfund portal, you won't be able to benefit from this opportunity.

Required Documents for the Loan Application

You will need some essential documents to successfully complete the loan application process. The documents include:

• A JAMB admission letter serves as evidence of your acceptance into the institution.
• National Identification Number (NIN).
• Bank Verification Number (BVN).
• Your student matriculation or registration number.

 

Step-By-Step Guide to Apply for Nelfund Student Loan

To apply for the loan, follow these steps:

Step 1: Confirm Your Eligibility and Get ready all the Required Documents

Verify that you meet all the mentioned eligibility criteria. This will guide your next steps. 

Additionally, confirm that your institution has registered your information on the Nelfund portal.

Once you have confirmed your eligibility for the loan application, gather all necessary documents, including your admission letter, BVN, NIN, and student matriculation or registration number.

Step 2: Access the Nelfund Online Portal

Go to the official Nelfund website and create an account using your email and a secure password. If you already have an account, log in using your credentials.

Step 3: Fill Out the Nelfund Application Form

Provide your personal details, including your name, date of birth, and contact information. Then, input your academic details by indicating your institution’s name, course of study, and year of enrollment. 

Clearly express your financial situation and the reasons for needing the loan.

Step 4: Upload Required Documents

Upload clear and readable copies of the necessary documents. Ensure that your uploads meet the specified size and format requirements.

Step 5: Review and Submit Your Application

Go over all the information provided to confirm its accuracy and completeness. After this, submit your application. A confirmation email will be sent to you with information about the next steps.

Step 6: Await Processing and Approval

Once submitted, Nelfund will evaluate your application through an automated system to ensure equity and transparency. If your loan application is approved, Nelfund will disburse the funds directly to your institution to cover tuition and other sanctioned expenses.

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Essential Provisions for the Nelfund Student Loan

There are specific provisions in place for students seeking the loan. These include:

1. Repayment Terms

The loan repayment starts two (2) years after finishing the mandatory National Youth Service Corps (NYSC) program. A percentage of 10% of the recipient’s salary will be deducted until the entire loan amount is repaid.

For more detailed information, check out the Nelfund Student Loan terms and conditions to make accurate and informed decisions.

2. Loan Forgiveness

This loan includes a provision for debt forgiveness. 

It applies in cases of permanent disability or death, ensuring that the family of the student is not burdened with the debt.

3. Hardship Considerations

Beneficiaries may request an extension for loan repayment if they encounter challenges in finding employment after completing their NYSC. 

They must provide an affidavit and supporting evidence of their circumstances.

4. Penalties For False Information

Providing inaccurate information during the application process is considered a serious offense and may lead to a prison sentence of up to three years.

Nelfund Student Loan Frequently Asked Questions

How long does it take for a Nelfund loan to be approved?

It might take up to 30 days to get an approval message first in your registered email and likewise on your NELFUND Student Loan portal.

How much will Nelfund pay?

“The fee range of varies actually. It mainly depends on your institutional fees and specific course of study. Regardless of the amount, NELFUND will pay all your institutional fess and also pay you monthly upkeep of #20,000 in case you also apply for upkeep while you are processing your application.

What are the requirements for a Nelfund student loan?

To qualify for the loan, students must be accepted into an accredited institution. Additionally, they are required to have a valid BVN (Bank Verification Number) and NIN (National Identity Number) to successfully process their application.

How to pay back a Nelfund loan?

You will reach out to NELFUND and formalize an agreement outlining the repayment terms. Repayment can occur whenever you have the funds available, 

even prior to securing employment. What is the process for repaying the loan? Ten percent (10%) of the borrower's salary will be automatically deducted by the employer.

What does it mean if your Nelfund loan is verified?

Verified: This indicates that NELFUND has validated all the details you provided during the loan application. Approved: This signifies that NELFUND has granted approval for your loan application.

Wrapping up

You can now go ahead and start your Nelfund Student Loan Application process for 2024/2025. Make sure you follow the application to avoid any mistakes. 

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