FG says only applicants from federal institutions can access student loan for now

The Managing Director of the Nigerian Education Loan Fund (NELFUND) Akintunde Sawyer has disclosed that the first phase of the student loan disbursement can only cater to a maximum of 1.2 million applicants from federal institutions.

Sawyer revealed this at a briefing on Monday, May 20, 2024, ahead of the opening of the portal for applications on Friday, May 24, 2024.

The NELFUND MD stressed that the first phase of disbursement will be officially open for students in federal institutions whose institutions have completed the uploading of their data.

He said prospective applicants can begin their application process effective this Friday, noting the loan application process has been streamlined to ensure easy access for all eligible students.

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According to him, the loan scheme, designed for students in government tertiary institutions, will be rolled out in phases with students from federal institutions having the first bite before those in state institutions.

Students to get stipend from FG

Sawyer described the initiative as a crucial component of the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, aimed at providing financial assistance (obligatory fees and stipend) to needy students to enable them to pursue their academic goals without immediate financial hindrance.

He explained that the interest-free loan offers flexible repayment options, which commence two years after completing the National Youth Service Corps (NYSC), provided the individual is gainfully employed.

He said NELFUND will disburse 100% of institutional fees directly to applicants' institution of learning while also providing monthly stipends to students when school is in session.

Sawyer reeled out some key features of the student loan, which include no physical contact between the loan applicant and NELFUND, a user-friendly Loan Application portal, comprehensive support where applicants can access online support to assist and affordable and flexible repayment plans.