The Nigerian Education Loan Fund (NELFUND) is a transformative initiative by the Federal Government of Nigeria, established under the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, to provide financial support to Nigerian students pursuing higher education and vocational training.
NELFUND aims to break financial barriers by offering interest-free loans for tuition, institutional charges, and upkeep allowances, ensuring equitable access to education for students in approved public tertiary institutions and vocational programs. The policy on loan disbursement is designed to promote fairness, transparency, and alignment with institutional academic calendars, addressing challenges such as non-harmonized academic schedules and duplicate payments.
Upkeep Loan Disbursement Policy
NELFUND’s student loan disbursement policy is built around the principle of aligning financial support with the academic calendar of each student’s institution. One of the most important components of this policy is the monthly upkeep stipend. According to the guidelines, upkeep disbursements are tied strictly to the current academic session in which a student is enrolled. This means that once an academic session ends, the disbursement of upkeep allowances automatically stops. To continue receiving upkeep funds in a new session or academic year, students are required to reapply. This policy was introduced to maintain accurate and timely financial support and avoid the problem of payments spilling into non-active periods.
Preventing Duplicate Payments and Ensuring Transparency
Another goal of the NELFUND policy is to prevent double payments caused by the non-uniform academic calendars across different tertiary institutions in Nigeria. To address this, the disbursement system has been designed to only consider upkeep applications relevant to the ongoing academic session. Students cannot apply for or receive upkeep loans meant for past or future sessions. Additionally, NELFUND has improved the transparency of its digital portal. Students can now clearly see how much upkeep they have received for their current session. This change helps both NELFUND and the beneficiaries maintain accurate records and avoid confusion about what has already been disbursed.
Institutional Loan Disbursements (Tuition and Charges)
While upkeep funds go directly to students, tuition or institutional loans are disbursed directly to the respective tertiary institutions. These funds cover tuition and related charges. Students have the flexibility to apply for both tuition and upkeep loans, or choose to apply for tuition support alone. The policy ensures that once tuition fees are paid to institutions through NELFUND, the institutions must reflect that payment and should not demand the same amount from the student again.
Reasons for Application Rejection
NELFUND has outlined several reasons why a student’s loan application may be rejected. The most common reason is applying for an upkeep loan for a session that has already ended. Since upkeep loans are only valid for active sessions, any attempt to apply after a session concludes is automatically declined. Another frequent issue is the submission of incomplete or inaccurate documentation.
This can include mismatches in name records, missing identity numbers (like NIN, JAMB number), or incorrect bank account details. Additionally, applications may be rejected if the student’s institution fails to verify or approve their enrollment data. Importantly, students are given full transparency through the portal, where reasons for rejection are clearly displayed, allowing them to correct mistakes and reapply if necessary.
Institutional Obligations and Ethical Compliance
Institutions that receive funds on behalf of their students are expected to act ethically and transparently. Once tuition payments are received from NELFUND, institutions are required to notify students promptly. Under no circumstances should a school continue to demand fees already paid by the fund. NELFUND has cautioned institutions against withholding such information or misrepresenting the payment status. These actions are deemed unethical and may attract legal consequences. Institutions are also required to upload accurate academic calendars and verify student information to enable smooth disbursement.
Oversight and Accountability Measures
To strengthen accountability, the government has implemented active oversight of the NELFUND disbursement process. The House of Representatives has ordered investigations into reported cases of mismanagement, non-disclosure of disbursed loans, and other unethical practices by institutions. These investigations aim to ensure that the objectives of the NELFUND Act are upheld. Additionally, the National Orientation Agency (NOA) is involved in monitoring the implementation of student loan disbursements across the country. They collect feedback from students and stakeholders to identify areas of concern and promote transparency in the process.
READ ALSO: 10 Easy Steps to a Successful NELFUND Loan Application in 2025
FAQs
What happens if my institution has not uploaded its academic calendar?
Students cannot apply or receive disbursements until their institution uploads its academic calendar to the NELFUND portal. Contact your institution to ensure compliance.
Can I apply for a loan without a student ID?
Yes, a student ID is optional. The mandatory requirement is a valid admission letter.
Why was my application rejected?
Rejections may occur due to incomplete documentation, incorrect account details, mismatched names, or applying for an ended academic session. Check your dashboard for specific reasons and reapply for the current session.
Do I need to reapply every academic session?
Yes, students must reapply at the start of each academic session to access both institutional charges and upkeep loans.
What if I’ve already paid my tuition fees?
If NELFUND pays your institution after you’ve settled fees, request a refund directly from your institution. NELFUND does not disburse refunds to personal accounts.
How can I check my loan disbursement status?
Log in to the NELFUND portal and check the “Loans” section on your dashboard for updates on disbursement status.
When does repayment start?
Repayment begins two years after completing the NYSC program. If unemployed, notify NELFUND every three months via a sworn court affidavit until employed.
Can I apply for only the upkeep loan?
Yes, students can choose to apply for institutional charges, upkeep loans, or both, depending on their needs.
What happens if my upkeep loan is disbursed for fewer months than expected?
The balance will be credited only if the academic session is still active. If the session has ended, you must reapply for the new session.
Are there any hidden charges for the loan?
No, NELFUND loans are interest-free, and there are no hidden charges. Report any suspicious requests for payment to NELFUND immediately.
