How Do Student Loans Work in Nigeria? A Beginner’s Guide

Getting a student loan in Nigeria has always been a challenge for many students. However, with the new Students Loan Act, students in public universities and polytechnics can now access loans to fund their education. If you are wondering how student loans work in Nigeria, this guide will explain everything in simple terms.

What is a Student Loan?

A student loan is money borrowed to pay for school fees and other educational expenses. In Nigeria, the loan is meant for students in public institutions (federal or state universities, polytechnics, and colleges). The best part? You don’t have to pay it back immediately; repayment starts after you graduate and get a job.

Who Can Apply for a Student Loan in Nigeria?

To qualify for the Nigerian student loan, you must meet these conditions:

1. You must be a Nigerian student in a public university, polytechnic, or college.
2. Your parents or guardian must earn less than ₦500,000 per year (to ensure only those who truly need it get help).
3. You must have two guarantors (e.g., a civil servant or lawyer).
4. You must not have been convicted of any crime.

How to Apply for a Student Loan in Nigeria

Applying for a student loan is now easier with the Nigerian Education Loan Fund (NELFUND). Here’s how it works:

1. Visit the official NELFUND website (when the application opens).
2. Fill in your personal and academic details.
3. Provide the required documents, including details of your guarantors.
4. Submit your application and wait for approval.

How is the Loan Repaid?

• Repayment starts two years after graduation when you get a job.

• If you are employed, 10% of your salary will be deducted monthly.

• If you start a business, you must repay a percentage of your earnings.

Key Things to Note

1. It’s only for students in public schools – private university students are not eligible.
2. It is interest-free, meaning you only pay back the exact amount you borrowed.
3. Your employer is required by law to deduct loan repayments from your salary.

Final Thoughts

Student loans can help many Nigerians afford higher education. If you qualify, it can be a great way to complete your studies without financial stress. However, always remember that it’s a loan, not free money, so plan ahead for repayment.

Would you apply for a student loan? Let us know your thoughts!