Education is believed to be the bedrock of any society, as this is a precursor to the growth and development of country. But where access to quality education is missing, it increases the unemployment rate, which in turn retard economic productivity. With this understanding and many more, the Federal Government of Nigeria, under President Bola Tinubu, rolled out a student loan scheme to make higher education accessible to Nigerian students. Let’s explore how to apply how to apply for a Nelfund student loan.
An Understanding Of Nelfund Student Loan
The preponderance of the Nigerian population are youths who continue to seek ways to achieve their coveted dreams. While this digital age has ushered in innovative ways to make money online to meet their demands, part of which to afford access to education, the government is doing its bit in that light.
So while students might be going to quick loan apps to borrow money to cover their school expenses, the 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.
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.
Notably, a portion of taxes, levies, and duties collected by the Federal Internal Revenue Service (FIRS) will be Nelfund’s source of funding. 1% of these collections goes to a General Reserve Fund that finances student loans.
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-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.
Step 2: Access The Nelfund Online Portal
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. Upon the approval of the loan application, Nelfund will disburse the loan amount directly to your institution to cover tuition and other approved expenses.
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.
Conclusion
We cannot overemphasize how the Nelfund student loan is a pivot towards accessing tertiary education in Nigeria without financial constraints. This would bolster the education system in the country and bring many out-of-school students back to the classroom.
However, it is essential to understand the eligibility criteria and required documents before applying.
