NELFUND Overwhelmed by 60,000 Student Loan Applicants

The Nigerian Education Loan Fund (NELFUND) has been overwhelmed by an influx of student loan applicants since the opening of its application portal on May 24, 2024. As of May 30, 2024, NELFUND has received over 60,000 loan applications from students attending federal institutions of higher learning. Out of these, 30,000 applications have been successfully processed, indicating a significant demand for the student loan program.

This surge in applications follows the recent enactment of the 2024 Student Loan Act by President Bola Tinubu in April 2024, repealing the 2023 legislation. The new law aims to ensure sustainable higher education and functional skill development for Nigerian students and youths by establishing the Nigeria Education Loan Fund (NELFUND) to provide loans for tuition, fees, and upkeep at recognized higher education and vocational training institutions within Nigeria.

The 2024 Student Loan Act introduced several key changes, including the removal of the family income threshold and guarantor requirement, allowing all Nigerian students to apply for loans and take responsibility for repayment. It also includes provisions for loan forgiveness in the event of the borrower’s death or other acts of God that cause an inability to repay.

Despite the overwhelming response, NELFUND is committed to addressing the challenges faced by applicants and has already processed a significant number of applications. The organization is also set to begin accepting applications from students attending state-owned tertiary institutions in three weeks, with plans to facilitate a smooth and seamless application process.

This program is designed to prepare students to meet the demands of the modern job market, fostering entrepreneurship and innovation amongst Nigeria’s young people. The student loan initiative is a crucial component of the Renewed Hope Agenda of President Bola Tinubu’s administration, offering interest-free loans to Nigerian students pursuing higher education and vocational training.