Many students are in my DM asking about how to get student loan in Nigeria and how to apply for The Nigerian Education Loan Fund (NELFUND). Good news, this article is for you so read and digest it.
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As a Nigerian undergraduate attending a renowned institution, university, college, or even approved vocational institutions, either as a full-time or part-time programme, it can be very difficult to keep up with the school finances. Especially within the Nigerian educational system, which is suffering from severe economic upsets that have gradually witnessed the average Nigerian university school fees soaring to seemingly new heights due to yearly increments to meet up with economic demands.
This situation has mainly made many undergraduates who can’t seem to cope with the payments withdraw from schooling and has even discouraged many qualified secondary school leavers from even applying for tertiary education, as they view tertiary education as for “the rich” who can afford it.
To tackle this situation within the Nigerian ecosystem is the advent of student loans that the government is newly implementing.
These student loans are financial incentives designed to stimulate the general public’s interest in tertiary education. They typically cover some or all of the associated costs with tertiary education, with a major focus on the school tuition fees, most especially. Other inclusive costs are accommodation fees, stationery allowances, book supplies, and other related expenses.
Aside from the government and public agencies, these loans can also be sourced from financial institutions and NGOs alike, with the common objective of offering financial support to students who seek to pursue tertiary education either within vocational studies or undergraduate programmes.
Types of student loan in Nigeria
So, based on this knowledge, we can broadly categorize student loans into two distinct types.
- Government-backed loans from the Nigerian Education Loan Fund
- Private-sponsored loans
Government-backed loans- these are student loans that are sponsored and offered by the government directly or through its agencies, usually with more favourable payment terms and lower or no interest rates at all for applying students.
Private sponsored loans – this comprises any student loan offers that are available for students outside of any governmental intervention. They are usually provided through financial institutions like microfinance banks, NGOs, commercial banks, private companies, and the like.
How to get Student Loan In Nigeria from
In your quest to attend a renowned tertiary institution within Nigeria, the advent of student loans can help you actualise your dreams.
Though it is important to note that despite the key role student loans play in the average student’s academic pursuit, there are some essential aspects to strongly consider before you can apply for these loans. Thoroughly evaluating these core aspects, coupled with your own personal research, will allow students to reach a consensus on whether or not securing a student loan will be a good choice towards their educational goals. This will be very helpful when securing these loans to achieve your long-term academic objectives.
Some of the essential aspects are explained below;
1. Loan application processes
Basically, the application processes for any student loan usually differ based on the type of loan; either it’s government-sponsored or privately funded, with the amount of paperwork needed varying based on the different ways they process their data and verify information provided by the loan applicant.
However, similar to all student loan cases, applying usually requires that you fill out and submit a loan application form, which might be digitally or physically handled. Necessary paperwork would be required to ascertain and verify your identity, income earnings, and provided information; hence, documents such as academic transcripts, ID cards, Nin information, and proof of enrollment would be required.
2. Total Educational costs
Before one applies for any loan, it is important to evaluate the totality of all costs pertaining to your tertiary education, i.e., tuition, stationery, departmental levies, accommodation, and every other expense. This knowledge would be important to determine how much you need, how much the student loan will cover, and the deficit amount you still have left to account for.
3. Student Loan Limits and Amounts.
It is important to note that we have a vast number of loan applicants, especially within Nigeria, and apparently, not every needy student can get access to these loans, so in a bid to prioritise maximum reach to all students, loan limits are being set either annually or for the course duration of study.
Additionally, factors such as total costs of education, course level, educational policies, and the limited amount of funding available to lending institutions have led them to place limits on amounts that can be loaned and many other additional offers that they can provide to their loanees
4. Loan Interest rates
Similar to any other loan, student loans are no different and also have stipulated interest rates till they are repaid. Though this interest rate might be a fixed percentage that accumulates over time or a variable amount that is charged on the loan amount if the applicant fails to meet certain obligations or requirements.
Even with normal loans, student loans are also dependent on key factors such as fluctuating market rates, lender’s conditions, and even economic policies at times affect student loans.
It is howeve,r important that cases of government-sponsored loans usually offer lower or no interest rates at all for applicants who can secure them.
5. Repayment options
Student loans within Nigeria usually have flexible repayment options that are specially designed to cope with the loan applicant’s finances. Usually, in most cases scenarios student loan repayment can start immediately after the loan has been reimbursed, but they are usually granted an off period, which is after students leave school and secure job opportunities to pay it off. Student loan repayment can even span decades from the time of reimbursement, depending on the agreed payment terms and conditions between the lending institutions and borrowers.
6. Government grants and initiatives
It is important to note that the Nigerian government is now directly improving the educational system by providing grants and strategic initiatives to greatly enhance students’ access to good, quality tertiary education. These initiatives come in the form of scholarships, no-interest loans, and grants that are offered to students through its agencies. Notably, the Federal Ministry of Education, TETFund (Tertiary Education Trust Fund), and the newly established NELFUND (National Education Loan Fund) are governmental agencies that offer these initiatives.
The advent of NELFUND for student loans
NELFUND- The Nigerian Education Loan Fund is a newly established Federal Government initiative that handles and pays the tuition fees for its applicants, even going as far as providing optional upkeep allowances for loan applicants across all Tertiary institutions within Nigeria. This loan has no fixed interest and is expected to be repaid after students have completed their NYSC service.
According to NELFUND, the 2023/24 cycle has officially ended, and the student loan application portal for the 2024/25 academic session has already opened for potential applicants to apply.
Early application will be key on the student’s part to ensure that eligible beneficiaries are able to receive payments promptly.
How to apply for The Nigerian Education Loan Fund (NELFUND)
Below is an outlined guide for how to apply for a student loan on NELFUND, particularly if you are seeking one against the 2024/25 academic session.
- Access the official NELFUND website using the link www.nelf.gov.ng and click on the ‘apply now’ button visible on the NELFUND homepage.
- Click on ‘get started’ to initiate your registration and answer any questions to verify your eligibility and nationality.
- After selecting your Nigerian nationality, fill in your relevant educational data in the required field. Fill in your matric number to ascertain if the institution has submitted your data.
- You should be directed to verify your educational details by filling in your JAMB details. If your NIN is previously linked to your JAMB, you won’t need to provide it again, but if not, you’ll be asked to provide it.
- After validation, you will be asked to create an account with your Gmail and preferred password. You should be sent a verification link to your email to activate your account afterwards.
- Log in with the link and sign in; you should be directed to provide the necessary details of phone number, residential address, and the like. After which, you should click proceed to ‘Educational details’ to update your details.
- Upon accessing your educational details, select your school from the compiled list of higher institutions and enter your unique matric number.
- The next section will be uploading your bank account details. You would be asked to provide your BVN, bank, and account number to complete your NELFUND account profile.
- Click on the ‘Request for student loan’ button at the topmost corner to apply for that student loan
- Select if you require upkeep allowances with the tuition loan or not, and click on proceed.
- You will be asked to upload the necessary documents of the JAMB admission letter and, additionally, in some cases, students’ ID cards and university letters.
- Read carefully and agree with the policy and declaration to continue your loan application. You should be provided a loan application overview, which you should carefully check to verify all your details. After this inspection, accept all terms and conditions and other necessary mandates by ticking the necessary boxes.
- Finally, click on ‘submit application’ to finish and finalise the whole loan application process.
After submission, check out the loan requests to check through pending status of your loan, whether it’s approved or not. - If your application is successfully approved, a website notification and mail will be sent to inform you, and in the event it’s not successfully approved, you can chat up NELFUND to resolve this through their email.
Conclusion
From the blog article, it is very easy to deduce that student loans are financial instruments to improve the educational system within the Nigerian society. As a loanee, there is a pressing need for you to keep a good track of your loan balance, repayment options, and your overall progress to ensure that you are on the right path as regards your loan settlement.
Don’t just wait till you finish school or till after your graduation before you start repayment. By following the above-mentioned steps and being actively consistent in managing your loan, you can surely repay your debt while minimizing any risks for financial instability in the long run.
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