NELFUND issues guidelines for administration of student loans

By Merit Ibe

The Nigerian Education Loan Fund (NELFUND) has released guidelines for the implementation of the Federal Government’s Student Loan Scheme in public tertiary institutions.

In a statement by  Director of Strategic Communications, Mrs Oseyemi Oluwatuyi, on Tuesday, the guidelines set out rules for eligibility, application, disbursement, and repayment.

According to the statement, applicants must be Nigerian citizens with valid admission into an eligible institution and provide their National Identification Number (NIN), Bank Verification Number (BVN), and Joint Admissions and Matriculation Board (JAMB) details.

Oluwatuyi noted that loan requests will be processed exclusively through the NELFUND online portal (www.nelf.gov.ng), with beneficiaries required to submit personal, academic, and KYC details. Approved loans will be paid directly to institutions to cover tuition and other charges, while optional upkeep allowances may be disbursed to students.

Furthermore, repayment will begin two years after completion of the National Youth Service Corps (NYSC) or exemption, with 10 per cent of the beneficiary’s income remitted monthly, either through the Pay-As-You-Earn (PAYE) system or self-employment models.

Institutions are required to verify applications within 20 working days, process refunds where necessary, and comply with reporting obligations. Breaches of these provisions may attract sanctions, including suspension from the scheme.

NELFUND also stressed its commitment to fairness, equity, and strict adherence to Nigeria’s Data Protection Act, 2023, in the handling of students’ information.

NELFUND Managing Director, Mr. Akintunde Sawyerr, said the initiative was not just about providing loans, but also about breaking financial barriers to education and fostering socio-economic growth.

“These guidelines provide the roadmap for institutions and students to access the scheme transparently and effectively.”