As UNIDEL prepares for a new academic session, eligible students are urged to take advantage of the Federal Government’s interest-free education loan
By Ewere Okonta, PhD
08037383019
eob.org.ng
What happens when a brilliant student gains admission to the University of Delta, Agbor, but suddenly discovers that the family can no longer afford the cost of keeping that dream alive?
For many Nigerian students, the answer has traditionally been painful: defer the programme, struggle to raise money, or drop out altogether.
But that narrative is changing.
The Nigerian Education Loan Fund (NELFUND) offers eligible Nigerian students an opportunity to obtain interest-free financing for approved institutional charges and upkeep, potentially providing a lifeline to students who might otherwise abandon their education because of financial difficulties.
As UNIDEL prepares for another academic session, interested students who face financial constraints should seriously consider taking advantage of the programme.
Indeed, NELFUND is arguably one of the most commendable education interventions introduced by the administration of President Bola Ahmed Tinubu, because of its central objective: ensuring that financial hardship does not become an automatic death sentence for a student's educational ambition.
FROM PARENTS' POCKETS TO FUTURE EARNINGS
For decades, the traditional model of financing university education in Nigeria was simple:
Parents/Guardians → Pay School Charges → Student Studies → Graduation
If the family could no longer pay, the student's education was at risk.
NELFUND introduces a new model:
NELFUND/Government → Student's Education → Institution + Student → Graduation → Future Repayment
In other words, an eligible student can obtain financing now, complete his or her education, enter the workforce and repay the loan under the applicable repayment conditions.
That is a fundamental shift in how Nigerians can finance higher education.
HOW NELFUND STARTED
The student-loan idea predates the current administration, but the present NELFUND framework emerged from the Students Loans (Access to Higher Education) Act, 2024, signed into law by President Tinubu on April 3, 2024.
The 2024 Act repealed and replaced the 2023 student-loan law and significantly redesigned the scheme, including removing the previous family-income threshold and guarantor requirements and expanding the loan to cover institutional charges and upkeep.
The NELFUND digital application portal subsequently opened in May 2024, moving the programme from legislation to practical implementation.
Today, the scheme has become an important part of the Federal Government's strategy for widening access to tertiary education.
WHAT DOES NELFUND PAY FOR?
There are two major components.
Institutional charges: Approved charges are paid directly to the institution.
Upkeep: An approved upkeep component is paid to the student, with NELFUND's FAQ stating that upkeep is paid in monthly instalments.
The exact amount available to a student depends on the approved and verified amount reflected in the NELFUND system.
And there is an important warning:
NELFUND IS A LOAN, NOT A SCHOLARSHIP.
It is interest-free, but it must be repaid.
WHO CAN APPLY?
Eligible Nigerian students enrolled in qualifying programmes and institutions can apply, subject to NELFUND's verification and approval requirements.
For a UNIDEL student, the practical requirements include Nigerian citizenship, valid student/admission information, identity verification and accurate educational and banking information.
The 2024 framework removed the former family-income threshold and guarantor requirement, making the scheme considerably more accessible.
HOW CAN A UNIDEL STUDENT APPLY?
The process is online.
Students should:
- Visit the official NELFUND Student Loan Portal.
- Create an account.
- Verify their identity and Nigerian citizenship.
- Provide the required educational information.
- Complete student-status verification.
- Select "Request for Student Loan."
- Choose the applicable institutional-charge and/or upkeep component.
- Review the information carefully.
- Submit the application.
- Monitor the application for verification, approval and disbursement.
Students should have relevant information such as NIN, JAMB/admission details, student or matriculation information, programme details, contact information and appropriate banking information readily available.
Students should also ensure that their names and other details are consistent across their NIN, JAMB, university and banking records.
HOW DOES UNIDEL RECEIVE THE MONEY?
This is important.
Students should not expect to collect their approved institutional charges as cash and then pay the University.
The normal structure is:
NELFUND → UNIDEL
for approved institutional charges, while:
NELFUND → Student
for the approved upkeep component.
This makes accurate student data, verification and financial reconciliation extremely important.
UNIDEL's Registry, ICT, Bursary, Student Affairs and other relevant units therefore have critical roles to play.
The University has already demonstrated engagement with the scheme. Its official website has published a "NELFUND APPLICATION IS ON" notice, while the University has also communicated arrangements involving NELFUND-verified and disbursed students.
WHAT IF THERE IS A PROBLEM?
Students should not panic if verification takes time or if they encounter discrepancies.
Common problems can include:
- Name mismatches;
- Incorrect JAMB information;
- Wrong student/matriculation details;
- Banking-information errors;
- University-data discrepancies;
- Incomplete applications;
- Technical problems with the portal.
The first step should be to check the NELFUND portal and verify the information supplied. Students should then contact the appropriate UNIDEL office and, where necessary, NELFUND's official support channels.
Beware of fraudsters.
Students should not pay unofficial agents to "guarantee" NELFUND approval.
Use only official NELFUND and UNIDEL communication channels.
WHEN DO YOU REPAY?
This is where students must understand the difference between interest-free and free money.
Under NELFUND's current terms, beneficiaries who participate in NYSC commence repayment two years after completing NYSC. Repayment is tied to income, with the current terms providing for 10 per cent of monthly salary to be deducted at source.
For example, a graduate earning ₦300,000 monthly would, illustratively, have ₦30,000 deducted under the 10-per-cent provision.
Self-employed beneficiaries also have obligations to update NELFUND with relevant business information.
And students should take note:
Failure to graduate does not automatically cancel the loan.
NELFUND's terms state that beneficiaries remain liable for applicable loans whether or not they eventually graduate.
There are also recovery mechanisms, including the Global Standing Instruction (GSI), for eligible outstanding obligations.
WHY UNIDEL STUDENTS SHOULD TAKE ADVANTAGE
The timing could not be better.
As UNIDEL prepares for another academic session, students who already know that meeting their educational expenses will be difficult should not wait until financial pressure becomes overwhelming.
NELFUND can potentially help them remain in school while their parents, guardians or families navigate difficult economic circumstances.
For a student who has the ability and determination to graduate but lacks immediate financial capacity, that opportunity could be transformative.
Don't wait until you are asked to leave the classroom.
Don't abandon your education because the money is temporarily unavailable.
Explore NELFUND.
WHAT UNIDEL CAN DO BETTER
NELFUND should also be viewed by UNIDEL management as more than a payment mechanism.
The University can maximise its benefits by establishing a dedicated NELFUND Help Desk, maintaining accurate student data, organising application clinics, conducting student sensitisation and creating an efficient mechanism for resolving verification and payment issues.
The programme can help strengthen student retention, improve access to education and reduce financially induced interruptions to academic programmes.
A COMMENDABLE GOVERNMENT INITIATIVE
NELFUND is not perfect, and like every large public programme, its implementation will continue to require refinement.
But its underlying philosophy is difficult to fault:
A Nigerian student should not have to abandon higher education simply because the family cannot immediately afford the cost.
That is why the NELFUND initiative deserves commendation.
The administration of President Bola Ahmed Tinubu has provided a mechanism through which today's financial difficulty does not necessarily have to become tomorrow's educational failure.
For UNIDEL students, therefore, the message is simple:
DON'T DROP OUT. EXPLORE YOUR OPTIONS. APPLY FOR NELFUND.
The opportunity is there.
Use it wisely.
Borrow responsibly.
Complete your education.
And repay when your time comes.
NELFUND may not give you free education. But it can give you something equally valuable: the opportunity to stay in school and finish what you started.
OFFICIAL PORTAL
UNIDEL
University of Delta, Agbor Official Website
Dr Ewere Okonta is the CEO of EOB Media, a family-values advocate, teacher and writer. He writes from the Department of Business Administration, University of Delta, Agbor.
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