By Emmanuel Oladipo
As the new academic session approaches, students are encouraged to take advantage of the recently amended student loan bill, signed into law by President Bola Ahmed Tinubu.
How can students take advantage of this scheme?
Students can apply for the loan scheme via the NELFUND Portal. They will need to create a profile before proceeding with the loan application.
Who is eligible for the student loan?
To be eligible for the loan, students must have been admitted into a recognised institution. In addition, they will need a valid BVN (Bank Verification Number) and NIN (National Identity Number) for a successful application.
What documents need to be submitted?
Students will only need to submit an admission letter and, optionally, a student ID card.
What does the student loan cover?
The student loan covers the tuition fee, which will be paid directly to the school. Students also have the option to apply for a monthly upkeep allowance of ₦20,000, which will be paid into the account they provide.
When does the loan repayment start?
Repayment of the student loan will begin two years after the completion of the NYSC program, making it convenient for students to stabilise financially before repayment begins. There are also no penalties for early repayment for students who wish to repay before this period.
How will the payment be made?
For employees, 10% of salaries will be deducted each month until the loan is fully repaid. For self-employed individuals, 10% of monthly profits will be collected per repayment instalment till the loaned sum is complete. Students who take the loan will be responsible for making the payment directly to the education bank.
Does the loan come with interest?
The student loan is interest-free, and students will only be required to repay the exact amount borrowed with no additional fees or interest.
Are there consequences for defaulting on the loan?
According to the NELFUND website, those who deliberately default on loan repayment could face penalties, legal action, and potential damage to their credit score.
The NELFUND loan scheme has been expanded to accommodate more students. Students are encouraged to take advantage of this opportunity to ease the financial burden associated with their education, thereby reducing the likelihood of dropping out due to financial difficulties.
For more information, students can visit the NELFUND Portal at portal.nelf.gov.ng.
Does the nelfund student loan cover for postgraduate students?