NELFUND: Who can apply, How to, How much can a Student Loan Get?
Distribution of the first batch of cheques to beneficiaries of the student loan scheme, launching the Nigerian Education Loan Fund, NELFUND. Yesterday, Thursday 18 July, the President, Ahmed Tinubu presented cheques to students from the six geopolitical zones.
Mr. Akintunde Sawyer, the Executive Secretary of NELFUND, announced that N32 billion was currently available for disbursement to kickstart the programme.
He added that over 110,000 had applied, and more than 160,000 had visited the Fund’s site. According to the President, the student loan is key to fighting poverty.
Who can apply for how much, how to
In May, Sawyer said the loan scheme will start with students of federal universities.
Eventually, he said, state-owned institutions, and then a programme on loan provision for those who want vocational skills or vocational qualifications will follow.
He urged students of state-owned institutions to apply, but that they would have to wait until it was their turn.
Also, how much you can apply for depends on your tuition fees and other payments you need to make. This is because NELFUND will pay the institution directly.
Besides, the Fund will also pay a monthly stipend. However, Sawyer did not say how much it will be.
To apply, you have to visit the NELFUND website and create a profile.
You then enter the name of your school, your matriculation number, upload the required documents, and verify your student status.
Disqualification …
NELFUND will run background checks. And you can be disqualified if you have borrowed money from any financial institution and have not paid.
Also, you won’t be eligible for the loan if you submited fake documents, or engaged in exam malpractices.
Again, if your institution does not upload students’ data on the NELFUND portal; or you are involved in fraud, forgery, drug offences, cultism, felony, or any dishonest dealings, you won’t get the loan.
How to pay back the NELFUND loan
Beneficiaries will start to pay back the loan two years after participating in the National Youth Service Corps, NYSC, scheme.
If the beneficiary gets a job, the Federal Government will deduct 10% from the person’s salary until the loan is repaid in full.
However, when the person is without a job, but is self-employed, the government will take 10% of his monthly profit. In this case, the NELFUND beneficiary will be paying the money into the appropriate government’s bank account.
Failure to repay the loan attracts a fine of N500,00 or two years imprisonment or both.
Source: Vanguard
