NELFUND to Stop Upkeep Loans During School Holidays
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NELFUND to Stop Upkeep Loans During School Holidays |
NELFUND announces that upkeep loans for Nigerian students will now stop during school holidays, aligning disbursements with academic sessions.
NELFUND Adjusts Student Loan Disbursement Policy
The Nigerian Education Loan Fund (NELFUND) has announced a new directive that will significantly affect student upkeep loan disbursements. According to the statement released on Thursday by Oseyemi Oluwatuyi, Director of Corporate Communications, upkeep loans will now be strictly tied to each institution’s academic calendar.
This means students will no longer receive upkeep payments once an academic session concludes. Payments will automatically cease during school holidays and resume only when a new session begins.
How the New NELFUND Loan Policy Works
Under the new directive, students will only access upkeep loans for their current academic session. Once that session ends:
- Upkeep disbursements stop immediately.
- Students moving into a new academic year must reapply to continue receiving benefits.
- Each session requires a fresh loan application for both institutional charges and upkeep allowance.
Monthly Upkeep Loan Breakdown
Previously, NELFUND disbursed ₦20,000 monthly to student beneficiaries, amounting to ₦240,000 per year. With the policy change, this benefit will now apply only during academic sessions, not school holidays.
This adjustment aims to improve efficiency, accountability, and alignment with institutions’ academic calendars.
Automation of NELFUND Loan Portal
To ensure transparency, NELFUND has begun automating its loan portal to reflect the new policy. The updated system will:
- Display only the upkeep loans collected by students within the relevant session.
- Require institutions to upload academic calendars and sessional information promptly.
- Guarantee students access to full upkeep benefits within the academic year.
Why the Change Matters
The adjustment comes at a time when education stakeholders are pushing for greater transparency in Nigeria’s student loan scheme. By tying upkeep loans to academic calendars, NELFUND aims to:
- Prevent misuse of funds during holidays.
- Ensure students receive maximum benefits while actively studying.
- Encourage timely and accurate data submission by institutions.
For context on global best practices, see the World Bank’s education financing reports which highlight how aligning student support with academic cycles enhances accountability.
The NELFUND upkeep loan adjustment marks a significant shift in Nigeria’s student loan system. While students will still receive ₦20,000 monthly during school sessions, disbursements will now stop during holidays. This move is expected to promote transparency, efficiency, and better resource allocation within the education sector.
Students and institutions are therefore encouraged to adapt quickly to the new system to avoid disruptions in funding.
