The rise in school fees and the high cost of education in recent years have made it impossible for students from low-income families to pursue higher education. Recognizing this challenge, Nigeria has implemented various financing strategies, one of which is the NELFUND Student Loan.
Nigeria, understanding this situation, has put in place a number of intervention programs including the Nigerian Education Loan Fund (NELFUND) student loan.
In this case, I will seek to explain what I have understood about the NELFUND student loan through some of the personal research I have conducted and the publications that are available on other peoples work.
Note: We are STUDENTPORTALS, and our priority is to provide you with detailed information and updates related to education, helping you make informed decisions, plan effectively as a student, and achieve your goals. Whether you're an aspiring student, current student, or postgraduate, we aim to give you the most important resources to support your journey! Follow us here.
What Is NELFUND Student Loan?
.jpg) |
| Screenshot from nelf.gov.ng |
NELFUND student loan is an initiative in Nigeria that aims at giving assistance to students who want to further their education. The institution is designed to alleviate the tuition fees and its ancillary expenses.
The institution is particularly focused on specific groups of students in tertiary institutions. The coming in of this student loan scheme was timely as most Nigerians were not able to take up higher education because of the increasing number of tuition fees.
During my research, I made an interesting discovery that this loan facility is part of a larger government initiative related to enhancing higher education access to students with a particular focus on the underprivileged.
From what I have read, the program seeks to emphasize building human capital which is in concordance with the activity of the government of Nigeria aimed at furthering education.
Eligibility Criteria
Understanding from my analysis, it is clear that not every applicant is suitable for the NELFUND Student Loan. There are certain characteristics that the students have to bear in order to qualify. Following are some of the usual criteria:
- Nigerian Citizenship. They must be Nigerian citizens in order to apply.
- Enrolled in a Tertiary Institution. Applicants must be students of any of the accredited tertiary levels of institution in Nigeria for example universities, polytechnics or colleges of education.
- Academic Performance. Graduate students must show compliance with satisfactory academic performance as the university puts it.
- Income Level. NELFUND is favorable for the lower class’s students and therefore only provides student loans to those who are able to prove that they fall in the required earning category.
- Guarantor. A student’s approval for borrowing must be accompanied by a signee that is fully aware that the creditor will be under obligation to repay the loan in the event that the borrowing student fails to do so.
From my observations, one of the constraints that students encounter is collection of the required documents, especially getting a good guarantor.
How to Apply NELFUND Student Loan
Filling for the NELFUND loan is not difficult, but there are some important processes to be observed when seeking to applying for the loan:
1. Registration:
Students create an account in NELFUND’s official website by providing personal, educational and financial information.
2. Submit Required Documents:
Applicants upload necessary documents including enrollment proof, identification and documentation of needy circumstances.
3. Verification:
NELFUND examines the application and the data provided as well.
4. Approval:
After the completion of approval, a notice is sent to students who have applied and funds are sent to their institution’s account.
I had such a discussion with some of the friends who went through the application process, and they underscored the need to complete the application correctly to avoid sluggishness.
NELFUND Student Loan Repayment Structure
One of the most important things that I got to understand with NELFUND student loan is that there is room for flexibility in repayment.
NELFUND appreciates the fact that graduates often face difficulties in getting jobs immediately after graduation.
It is for this reason that the repayment scheme is such that the students will commence repayments on their loans only after getting jobs.
Usually, the repayment phase usually commences about six months after the graduate leaves the educational institution.
These payments are made in several stages, with repayment periods being tailored to the income of each graduate.
This implies that, first and foremost, there is no urgency or pressure to clear a bulky amount.
Key Benefits of NELFUND student loan
There are several reasons that justify the taking of the NELFUND student loan. From what I have heard, let me summarize the most rewarding ones:
Access to Education- this is the most important benefit as it helps to widen the scope of higher education to students coming from low income socio economic background. I have written an article on how you can make money as a student, read it here
Grace Period: After they finish their studies, graduates are offered a period of six (6) months to search for employment or otherwise they begin to repay their loans.
Flexible Repayment Plans- the repayment plan is graduated, that is repayment is based on how much a graduate earns.
No Interest: Some versions of the loan tend to be offered at little or at no interest at all hence easing the financial load on the student.
Though in my personal experience the repayment plan indeed is the most applauded feature of this loan scheme that I have seen so far from students I know.
Challenges of NELFUND Student Loan
NELFUND student loan has a lot of advantages but it has disadvantages as well and it includes:
Documentation Issues – a number of students face the problem of submitting the required documentation particularly the endorsement of other people who are willing to stand as a guarantor.
Loan Disbursement Delays: Some students I have spoken to managed to take me through disbursement delays which was in some instances annoying, especially for students who are dependent on such money to cater for their direct school expenses.
Repayment Enforcement: Though the repayment plan is somewhat flexible, problems have arisen in enforcing repayments. The agency is still trying to monitor the repayers’ repayment plans implementation by the graduates.
NELFUND Student Loan Login Password
To log in to your NELFUND account, go to the official NELFUND student loan portal. If you’ve forgotten your password, click on the "Reset Password" button. You’ll be asked to enter your registered email. Follow the instructions to create a new password.
NELFUND Student Loan Application Form
You can find the NELFUND student loan application form Here on the portal. When filling out the form, you’ll need to provide your personal details, your school information, and proof of your financial status. Be sure to have documents like your admission letter and guarantor.
NELFUND Student Loan Portal
The NELFUND portal is where you apply for the loan, check your application status, and manage your account. You must first register by entering your personal and academic details.
Once registered, you can log in to keep track of your loan and submit any required documents.
How to Cancel NELFUND Student Loan
To cancel your NELFUND student loan, contact NELFUND support directly. You’ll likely need to submit a written request explaining why you want to cancel the loan.
If the loan has already been disbursed to your school, you might have to resolve any outstanding payments before they can officially cancel it.
Frequently Asked Questions
1. Who is eligible for NELFUND loans?
All Nigerian students studying in a certified higher education institutions are eligible for NELFUND student loan.
2. How much can I borrow?
The amount a student can access is determined by the institution and the course in question. NELFUND mostly avails funds for school fees, room and board as well as some other related studying costs.
3. Do I need a guarantor?
Yes, a third party is needed to sign the application for the loan to ensure some level of responsibility in the event that the borrower is unable to repay the loan.
4. How long is the repayment period?
The grace period before commencing repayment begins is six months after graduation, and there is an income-dependant repayment plan that caters to those on various earnings.
5. Can I apply for the loan every academic year?
Yes, students can apply again after one year once they qualify to do so.
How to Contact NELFUND
If you wish to contact NELFUND, please go to their support page, nelfund.esupport.ng, and follow the steps as they have various support for students applying for loans. There is also a contact form (in the website) where your queries can be posted.
Moreover, concern is also given to other assistance of technical and application nature so that students do not experience pitfalls of the application process as efforts are made to eliminate all the hurdles they could face.
Conclusion
The NELFUND student loan scheme is necessary for improving the access of Nigeria's population to education. From what I have learned It offers assistance to students who would find it hard to educate themselves.
This program has the right incentives because of the approach to repayment and the commitment to poor students. On the contrary, the issues of paperwork, delays in loan processing and difficulties in collection of dues need to be improved upon for the programme to have more impact.
Let me say, the NELFUND student loan is a ray of hope for many young Nigerians who wish to go to school and help develop the nation.
If you are thinking about making an application, put your documents in order and wait for the customer's criteria and application to avoid unnecessary application delays.
