Nigeria’s student loan scheme has launched its pilot phase with federal tertiary institutions as its first beneficiaries.
Gatekeepers News reports that President Bola Ahmed Tinubu introduced the interest-free loan policy which aims to support students in June 2023.
The scheme was initially planned to take effect in October 2023 but implementation was repeatedly deferred until it was reenacted in April 2024.
NELFUND said the scheme pilot phase which went live on May 24th would only be open to federal tertiary institutions.
The scheme went live at midnight on May 24 enabling students of federal universities, polytechnics, and colleges to apply.
NELFUND also clarified that the scheme’s second phase which will be announced when due will extend loans to state-owned institutions.
Through a Frequently Asked Questions (FAQ) published via its social media page, NEFUND announces that only students of public tertiary institutions are eligible to apply for the loan.
To be eligible, students must provide proof of admission including their name, birth date, JAMB number, matriculation number, and BVN.
All students including direct entry students can apply for the loan and the loan amounts will be determined by the charges of their respective institution.
It said, “The charges will be remitted directly to the institutions and the upkeep will be paid to the applicant on a monthly installment.”
“Applicants will receive a notification and the status of the loan application can be seen in the applicant’s profile on the portal.”
Repayment must begin two years after competition 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 he or she is yet still unemployed.
It said “Ten percent of a beneficiary’s salary will be deducted at source. Self-employed beneficiaries are to remit 10% of monthly profits.”
“You are at liberty to seek to repay beyond the statutory 10% monthly repayment by your employers/by self if you are self-employed.”
However, applicants with a history of defaulting on previous loans, submitting fake documents, or being dismissed got examination malpractice would be denied a loan.
A conviction for fraud, forgery, drug offenses, cultism, felony, and any offense involving dishonesty may also lead to disqualification.
