NELFUND RELEASES GUIDELINES FOR STUDENT LOAN IMPLEMENTATION

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BY OWOLABI OLUWADARA

The Nigerian Education Loan Fund (NELFUND) has issued directives for the management of the Federal Government’s Student Loan Scheme in public tertiary institutions, outlining criteria for qualification, application procedures, distribution of funds, and repayment terms.

In a statement released on Tuesday and signed by Mrs. Oseyemi Oluwatuyi, Director of Strategic Communications, it was emphasized that applicants must be Nigerian nationals with valid admission into an accredited institution and must furnish their National Identification Number (NIN), Bank Verification Number (BVN), and relevant Joint Admissions and Matriculation Board (JAMB) information.

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She indicated that loan applications will be processed solely through the NELFUND online portal (www.nelf.gov. ng), where beneficiaries are required to provide personal, academic, and KYC information. Approved loans will be disbursed directly to institutions to cover tuition fees and other expenses, while optional maintenance allowances may be allocated to students.

Moreover, repayment will commence two years following the completion of the National Youth Service Corps (NYSC) program or any applicable exemption, with 10 percent of the beneficiary’s income to be remitted monthly, either through the Pay-As-You-Earn (PAYE) system or through self-employment arrangements.

Institutions are mandated to verify applications within 20 business days, process refunds when warranted, and adhere to reporting responsibilities. Violations of these regulations may result in penalties, including suspension from the program.

NELFUND also reiterated its dedication to fairness, equity, and strict compliance with Nigeria’s Data Protection Act, 2023, concerning the management of students’ information.

Commenting on the announcement, NELFUND Managing Director, Mr. Akintunde Sawyerr, stated that the initiative extends beyond merely providing loans; it aims to eliminate financial obstacles to education and promote socio-economic development.

“These guidelines establish a clear framework for institutions and students to engage with the scheme transparently and efficiently,” he remarked.