- Up to 1.2 million students from federal tertiary institutions can access the new student loan scheme, starting May 24, 2024
- The interest-free loan covers fees and stipends, with flexible repayment options beginning two years after completing NYSC
The Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, announced that up to 1.2 million students from federal tertiary institutions will be the first to access the new student loan scheme.
Speaking ahead of the portal’s application opening on Friday, Sawyerr stated that the initial phase targets students from federal institutions who have completed uploading their data. The streamlined application process ensures eligible students can apply from May 24, 2024.
During a Monday briefing, Sawyerr explained that while the loan will eventually be available to all students in government tertiary institutions, it will first be rolled out to federal institutions before extending to state institutions.
This initiative, part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, aims to provide financial assistance to needy students, covering obligatory fees and offering a stipend to ease their financial burdens. The interest-free loan program features flexible repayment options, starting two years after completing the National Youth Service Corps (NYSC) if the individual is employed.
The loan fund will directly cover 100% of institutional fees to the schools and provide monthly stipends to students during their academic sessions.
Key features of the loan include a user-friendly online application portal, no physical interaction between applicants and NELFUND, and comprehensive online support for applicants. The program also offers affordable and flexible repayment plans.
“We encourage all students in federal institutions to take advantage of this opportunity for financial assistance. Applicants submit their applications promptly to ensure timely processing,” Sawyerr urged.
Sawyerr also mentioned collaborations with insurance companies to address potential loan defaults and security agencies to prevent fraud.
The Act governing the scheme requires no next of kin or collateral, but institutions must upload and register students’ data for loan access.