Securing student loans in Nigeria: know All
Unlock the steps to secure a student loans in Nigeria. Learn about eligibility, application, and repayment to fund your education with ease.
Pursuing higher education in Nigeria can be financially draining, but having access to student loans can bridge this gap. With the rising cost of living and school fees, most students need financial assistance to go to higher institutions.
Fortunately, various loan options are now available for students, offered by federal and private institutions. In this article, I will guide you through all the processes involved in securing federal student loans in Nigeria including eligibility requirements, required documents, and repayment terms.
Whether as an undergraduate or postgraduate, the information below will aid you with your financial decision on your education.
Eligibility Requirements For Student Loans in Nigeria
For you to be able to secure a student loans in Nigeria, you must meet the following criteria:
- Students must have secured admission into any public Nigerian University, Polytechnic, or college of education.
- Applicant income or family income must be less than N500,000 per annum as the Student Loan [Access to Higher Education] Act, 2024 aims to prioritize students from low-income backgrounds.
- Applicants must provide at least two civil servants as guarantors: of not less than level 12 years in service; or a Lawyer with at least 10 years post-call experience; a Judicial officer; or a Justice of Peace.
- Applicants must be proven to have not defaulted in respect of any previous loan granted by any licensed financial institution, must be found not guilty of submitting fake/fraudulent documents and dismissed for exam malpractices by any school authority; and must not be convicted of fraud and forgery, drug offenses, cultism, felony, or any offenses involving dishonesty
Application Process
Once you satisfy the above eligibility criteria, you can then proceed to apply for the Nigerian Education Loan Fund [NELFUND]
Step 1: Register on the Student Loan Application Platform by clicking the “APPLY NOW” button to get started
Step 2: Click on the “Request for Student Loan” button, complete the loan application steps, and submit.
Step 3: Your application will be reviewed. After successful verification, payments will be made to your institution for institutional charge, while the upkeep loan will be paid to the bank account you have provided in your profile
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Loan Details
Loan Amount
The Student Loan Bill signed by President Tinubu did not state the amount each successful student would be given, as it appears the loans will be based on the institution, course of study, and duration of study.
Repayment Process
The loan is due for repayment 2 years after the completion of NYSC.
According to the act, the repayment will be a direct deduction of ten [10%] percent of the beneficiary’s salary at source by the employer and paid into the student loan fund account.
Self-employed beneficiaries are required to remit 10% of their monthly profit to the Fund. You are at liberty to seek to repay beyond the statutory 10% monthly repayment by your employers/by yourself if you are self-employed.
In case, whereby you are unable to still gain employment two years post NYSC, the beneficiary should notify NELFUND by sworn court affidavit every 3 (three) months after two years post NYSC
Other Important Information
Documents Required
Yes. Two scanned documents are needed.
Admission letter for new students (compulsory), and scanned Student Identification Card (optional).
Consequences of Default
Deliberate default in the repayment terms could result in penalties, legal action, and potential damage to your credit score.
Tips for a Successful Application
1. Apply Early:
Submit your application as soon as the portal opens to avoid delays and ensure your application is processed quickly.
2. Provide Accurate Information:
Double check that all the details you provide match your official documents to avoid issues.
3. Stay Updated:
Regularly monitor the NELFUND website and your email for any updates or additional instructions.
Security Tips and Fraud Prevention
The Nigeria Education Loan Fund is collaborating with security agencies to prevent fraud. Students should only apply through the official portal and report any suspicious activity immediately.
Vision Plans
Currently, the program is focused on students in federal institutions, but there are plans to include those from state universities and vocational skills centers in the future. Stay tuned for updates on these expansions.
Conclusion
Securing student loans in Nigeria is a vital step towards achieving your educational goals without financial strain. As an undergraduate or postgraduate, these insights will empower you to make informed financial decisions for your academic journey.
So say goodbye to financial struggles in pursuing your education!
With quick loan options from the Nigerian federal government, funding your studies can be easily achieved without stress.