Are you aware that the Nigerian government is giving out federal government student loans to Nigerian students? Read how to apply for student loan in Nigeria in this guide.
In Nigeria, most students in higher institutions often face the harsh reality of financial constraints.
With the cost of tuition, books, and living expenses steadily rising, many students find themselves at a crossroads and wonder how to fund their academic pursuits.
This is where student loans come into play, to help those who might otherwise be unable to afford a college education.
Student loans in Nigeria are designed to bridge the financial gap and ensure that talented and deserving students can access quality education without being held back by economic barriers.
The federal government, recognizing the importance of education for national development, has established various loan schemes to support students.
These loans are not just about providing money; they are about investing in the future of Nigeria, as well as fostering a generation of educated people who can contribute to the country’s growth and prosperity.
In this guide, we will discuss everything you need to know about the federal government student loan as well as how to apply for student loan in Nigeria.
Before then,
What is the Importance of Applying for Student Loan in Nigeria
When you apply for a student loan in Nigeria, you get:
- Financial Support: It provides the necessary funds to cover tuition fees, books, and other educational expenses.
- Access to Education: It ensures that financial constraints do not interfere with your educational aspirations.
- Interest-Free Loans: The federal government offers interest-free loans, and make it easier to repay without the burden of accumulating interest
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Requirements Needed to Apply for Student Loan in Nigeria
To apply for a student loan in Nigeria, you need to meet the following requirements:
- Admission: You must have secured admission into a public Nigerian university, polytechnic, college of education, or any TVET school
- Income Criteria: Your income or family income must be less than N500,000 per annum
- Guarantors: Provide at least two civil servants as guarantors, or a lawyer with at least 10 years post-call experience, a judicial officer, or a Justice of Peace
- Clean Record: You must not have defaulted on previous loans or been found guilty of exam malpractice, felony, or drug offenses
What is the Federal Government Student Loan Portal?
The Federal Government Student Loan Portal is an Nigerian Education Loan Fund (NELFUND).
How to Apply for Federal Government Student Loans
To apply for a student loan, follow the steps below:
- Visit the NELFUND Portal
- Click on “Get Started” and answer the preliminary questions
- Provide your educational information and verify it with JAMB details
- Complete the application form and submit it through your institution’s Student Affairs Office
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How to Repay Federal Government Student Loan
Repayment of the federal government student loan is 3 years which begins two years after completing the National Youth Service Corps (NYSC) program. The repayment process includes:
- Salary Deduction: 10% of your salary will be deducted at source by your employer
- Self-Employed: If self-employed, remit 10% of your total profit monthly to the student loan account
Final Note on How to Apply for Student Loan in Nigeria
The federal government of Nigeria has made applying for a student loan in Nigeria a straightforward process.
However, you must meet the requirements and follow the steps outlined.
We have explained everything you need to know about the federal government student loan as well as how to apply for student loans in Nigeria.
Also, we discussed how to repay the student loan which is a 3 years repayment term to start 2 years after NYSC.
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FAQs
What is the interest rate on federal government student loans?
The federal government student loans are interest-free
Can I apply for a student loan if my family income exceeds N500,000 per annum?
No, the income criteria must be met to qualify
What happens if I default on my student loan repayment?
Defaulters may face legal consequences, including possible jail terms
Can I apply for a student loan if I am studying at a private institution?
No, the loan is only available for students in public institutions
How long does the application process take?
The application process can be completed within 15 to 30 minutes.