The pilot phase of Nigeria’s student loan scheme has gone live with federal tertiary institutions as beneficiaries.
Recall Nigeria’s President, Asiwaju Bola Ahmed Tinubu, enacted an initial version of the student loan policy in June 2023 to grant interest-free loans to students.
The plan was supposed to go into effect in October 2023, however execution was continuously postponed until it was reenacted in April 2024.
May 24 is the day that NELFUND has set aside for the launch of the loan application and issuing portal.
Only federal tertiary institutions would be eligible for the scheme’s pilot phase, according to NELFUND during pre-application sensitization.
On May 24, the programme went online at 0:00, and the fund encouraged federal universities, polytechnics, and colleges students to apply.
Earlier, NELFUND confirmed that loans to state-owned institutions will be provided as part of the scheme’s second rollout, which will be notified when it is due.
In an FAQ published via its social media page, NEFUND said only students of public tertiary institutions are eligible to apply for the loan.
It said they must submit proof of admission capturing their name, birth date, JAMB number, matriculation number, and BVN.
The fund said all new and existing students within the institutions can enter for the loan, conditionally including direct entry candidates.
It said how much loan every student is allowed to apply for would be determined by the charges of their respective institution.
“The charges will be remitted directly to the institutions and the upkeep will be paid to the applicant on a monthly instalment,” it said.
“Applicants will receive a notification and the status of the loan application can be seen in the applicant’s profile on the portal.”
NELFUND said a beneficiary must begin repayment two years after their youth service as long as they have a job or are self-employed.
It said a beneficiary should notify NELFUND by court affidavit every three months after this due date if still unable to gain employment.
“Ten percent of a beneficiary’s salary will be deducted at source. Self-employed beneficiaries are to remit 10% of monthly profits,” it said.
“You are at liberty to seek to repay beyond the statutory 10% monthly repayment by your employers/by self if you are self-employed.
The fund said an applicant would be denied a loan if proven to have defaulted on any previous loan granted by any licensed financial institution if found guilty of submitting fake documents, and if dismissed for exam malpractices by any school authority.
It said they may be disqualified if convicted of fraud, forgery, drug offences, cultism, felony, and any offence involving dishonesty.
