Long-awaited student loan: Thousands apply

Students at government-run higher education institutions in Nigeria are visiting the online portal of the Nigerian Education Loan Fund (NELFUND) in their numbers to apply for the much-awaited interest-free student loan, which finally kicked off on 25 May after several setbacks.

Some students have been able to submit their applications and are awaiting approval and disbursement. However, several applications have been stalled because the applicants’ matriculation numbers have not been uploaded onto the portal, or their schools are missing from the list, or the website could not verify their national identity numbers, among other issues.

The student loan initiative was established by the Nigerian government “to break financial barriers in higher education”. It is open to students at institutions run by federal and state governments.

NELFUND Managing Director Akintunde Sawyerr said it would be rolled out in phases, beginning with 1.2 million students at federal tertiary schools, Daily Trust reported on 20 May 2024.

Student experiences with applications differ

A year-two student, Usman Ahmad, told University World News that he has applied successfully for the loan and is awaiting approval. “I completed my application within 15 minutes without having any issues. I hope it will be approved and the loan will be disbursed on time. It is a good initiative, and I hope it will be properly implemented and sustained,” he said.

Another student, Victoria Adewale, said she initially experienced some glitches on the portal, but her application was eventually successful.

However, Mark Peter, a student at the University of Maiduguri, said the portal indicated “invalid institution fee” when he punched in his data.

Fatima Salisu, a biochemistry student, told University World News: “I am done with the account creation stage, but my school, Bayero University, Kano, has yet to upload my details to the portal. So, I can’t continue with my application. I have to wait till the school uploads the data.”

NOUN students in the dark

Several students at the National Open University (NOUN), a federal open and distance-learning institution, lamented that they could not apply for the loan because they do not have a Joint Admissions and Matriculation Board (JAMB) number, which is a requirement for the loan. NOUN students are not required to sit the Unified Tertiary Matriculation Examinations conducted by JAMB, so the board does not issue them an admission letter that carries the JAMB number.

“Some of us at NOUN want to apply for the loan, but we don’t have a JAMB number, since we didn’t gain admission through JAMB. Yet, NELFUND specifies that a JAMB number is compulsory before one can access the loan. I have lodged a complaint by tagging the fund on X, but I have not had any response,” Oborioma Matthew, a NOUN student, said.

“There’s no provision for postgraduate students in federal higher institutions to apply for the loan because the JAMB number is compulsory and postgraduate students don’t have JAMB numbers. What is the fate of the postgraduate students on the loan?” Lawal Idris, a postgraduate student, asked.

NELFUND, student body react to complaints

On X, the fund acknowledged that some students are facing challenges trying to apply for the loan on the portal and addressed the complaints as they came in. NELFUND Nigeria (the X handle) informed students what to do when they experience specific problems.

Akinteye Babatunde, the senate president of the National Association of Nigerian Students, said the body will follow up unresolved complaints with NELFUND.

“Some schools are finding it difficult to upload details of their students. Also, when so many people visit a website at the same time, there will be some glitches. The portal was just launched on Friday [24 May] and we will continue to monitor it,” Babatunde said. “As for NOUN students who cannot apply for the loan because they do not have a JAMB number, we will make a case for them at NELFUND on what to do and how to verify them.”

How the student loan works

The loan is accessible to students who have gained admission into public universities, polytechnics, colleges of education, and vocational schools, with proof of admission, NELFUND Nigeria posted under Frequently Asked Questions on X.

After an application has been approved, NELFUND remits the charges directly to the applicant’s institution within 30 days, and a monthly stipend is paid to the applicant during the academic session.

According to NELFUND, an application can be denied if the applicant is “proven to have defaulted in respect of any previous loan granted by any licensed financial institution; found guilty of submitting fake or fraudulent documents and has been dismissed for exam malpractices by any school authority; and convicted of fraud and forgery, drug offences, cultism, felony, or any offences involving dishonesty”.

Students have to apply for the loan for every academic session. It has to be repaid two years after the completion of the National Youth Service Corps (NYSC), a year-long compulsory service to the nation for graduates under 30.

Repayment rules

If beneficiaries do not have a job two years post-NYSC, they are required to notify NELFUND via a sworn statement every three months until they gain employment. For repayment, “10% of the beneficiary’s salary will be deducted at source by the employer. Self-employed beneficiaries are required to remit 10% of their monthly profit to the Fund”.

Beneficiaries are also at liberty to repay beyond the statutory 10% monthly and can repay as soon as they have the means, even before they gain employment. If they are relocating abroad, they are expected to inform NELFUND and sign an agreement, stating repayment modalities.

On the consequences of defaulting on the loan, NELFUND said: “Deliberate defaults could result in penalties, legal action, and potential damage to your credit score.”