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| Student Loan in Nigeria |
With the rising cost of tertiary education in Nigeria, the student loan in Nigeria scheme has become a vital financial support system for undergraduates and postgraduates across public institutions. Whether you are enrolled in a federal or state university, polytechnic, or college of education, the new Nigerian Education Loan Fund (NELFUND) is designed to help students access tuition and living allowances with flexible repayment options.
If you’re planning to apply or want to know how the student loan scheme in Nigeria 2025 works, this guide explains everything—from eligibility to repayment and how to apply online.
What is the Nigerian Student Loan?
The student loan in Nigeria is a federal government-backed initiative launched to provide interest-free loans to eligible Nigerian students studying in public tertiary institutions. Managed by NELFUND, this loan scheme was signed into law under the Student Loans (Access to Higher Education) Act and fully operational in 2024.
It is aimed at reducing the financial burden on students and ensuring no Nigerian is denied education due to lack of funds.
Who Can Apply for a Student Loan in Nigeria?
To qualify for the NELFUND student loan, the applicant must:
- Be a Nigerian citizen
- Be admitted into a public university, polytechnic, college of education, or vocational school in Nigeria
- Come from a family with an annual income of less than ₦500,000
- Provide at least two guarantors, either a civil servant of Level 12 and above or a legal practitioner/justice of peace
Additionally, students must not have defaulted on any loan before or have a criminal record involving fraud or dishonesty.
What Does the Student Loan Cover?
The loan covers the following:
- Tuition fees
- Accommodation
- Textbooks and educational materials
- Living expenses (monthly stipends)
The money is disbursed directly to the institutions for tuition, while stipends are paid into the student's bank account for upkeep.
How to Apply for Student Loan in Nigeria (2025)
You can apply for the loan through the official NELFUND portal by following these steps:
- Visit the portal and create an account using your JAMB registration number and school details
- Upload your admission letter, valid student ID, NIN, and passport photo
- Submit contact details of your two guarantors
- Fill in your family income and background info
- Submit the loan application
You will receive confirmation once your application is approved. Disbursement typically happens within 30 days after processing.
When Will Student Loan Repayment Start?
Repayment of the student loan in Nigeria begins two years after NYSC, or when the student secures a job or becomes self-employed. Repayment will be done through:
- 2% salary deduction from monthly income (for employed graduates)
- For self-employed individuals, deductions are made via tax remittances
There is no interest rate applied, but failure to repay after the grace period may attract penalties or restrictions on future borrowing from public funds.
Is the Student Loan Interest-Free?
Yes. The Nigerian student loan is completely interest-free, making it different from private education loans. This is part of the government’s effort to increase access to higher education, especially for economically disadvantaged students.
Challenges of the Nigerian Student Loan Scheme
While the policy is promising, there are challenges:
- Limited coverage for students in private institutions
- Strict income eligibility may exclude middle-income earners
- Guarantor requirement may be difficult for some students to meet
- Possible delays in disbursement depending on institutional verification
Still, it remains a major step forward in closing the education financing gap.
Other Student Loan Options in Nigeria
Besides the federal government loan, students can also explore:
- Edugrant Scholarships – for outstanding but underprivileged students
- PTDF Overseas and Local Scholarships
- Tertiary Education Trust Fund (TETFund) for research grants
- Private loans from platforms like FairMoney, Branch, or Carbon
Note that these private platforms may charge interest and require credit profiling.
Final Thoughts
The student loan scheme in Nigeria is a bold and timely initiative to support young Nigerians striving for higher education. If you meet the eligibility criteria and are in a public institution, applying through the official nelf.gov.ng portal is the first step to securing your academic future without financial pressure.
In 2025, more Nigerian students are expected to benefit from this scheme, as the federal government expands coverage and streamlines the application process. Make sure you apply early, submit all required documents, and stay updated on any policy changes.
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