This is a quick high level info about student loan that is starting by May 24. It is called NELFUND.

1. Creation of NELFUND: Think of NELFUND as a bank specifically for helping students pay for education. It's like a friend who can lend you money when you need it for school and can legally ask you to pay it back.

2. What NELFUND Does: NELFUND gives loans to eligible Nigerians to help them pay for things like tuition, school fees, and even living costs while they're studying at approved colleges, universities, or skills training centers.

3. Who Runs NELFUND: NELFUND is like a well-organized company. It has a group of directors, kind of like a board in a company, who oversee everything. These directors come from various important organizations and are appointed by the President. Then there's a management team who take care of the day-to-day running of NELFUND.

4. Where NELFUND Gets Its Money: 1% of all the taxes that the Federal Inland Revenue Service collects goes into a special fund. This fund is like NELFUND's bank account - it's where they get the money to give out as loans and to cover their operating costs.

For 2023, FIRS collected12.3 trillion naira as tax and revenue. 1% of this amount is 123 billion naira. So, in 2023, NELFUND's "bank account" would have been credited with 123 billion naira from the FIRS revenue.


5. Who Can Get a Loan: Previously, only students from certain income families and with a guarantor could get a loan. Now, it's like a door has been opened wider. More students can apply for these loans and all they have to do is promise to pay back according to NELFUND's rules.

6. What the Loan Covers: Students can use the loan to pay for their school fees and also for their living expenses. It's like getting a scholarship that you pay back later and pocket money to run your daily needs in school.

7. Paying Back the Loan: After you finish your National Youth Service Programme, you have a two-year grace period before you need to start repaying the loan. If you're having trouble finding a job and can't pay back yet, you can ask NELFUND for an extension. In certain situations, like if a borrower passes away or experiences extreme hardship, the loan can be forgiven.

Ebimpawa

Some Nigerians have been sharing fake news that FG only allocated 5bn for the student loan funding. This is totally wrong.

Student loan will be financed from 1% of the tax and revenue collected by FIRS in a performance year.

—In 2021, FIRS collected 6.4trn as revenue, 1% of this is 64billion and would have been allocated to NELFUND.

—In 2022, FIRS revenue rose to 10.18rn as revenue, 1% of this is a hefty 101.8bn and would have been allocated to NELFUND.

—In 2023, FIRS shot up to 12.3rn as revenue, 1% of this is a whooping 123bn and would have been allocated to NELFUND.

😂 😂 😂 😂

This is just an avenue to give out free money.


CORNfused 🌽 govt!

christejames:
😂 😂 😂 😂

This is just an avenue to give out free money.

CORNfused 🌽 govt!

Let’s even agree it’s an avenue to get free money, is that not better than politicians stealing the money?

NELFUND will be paid directly to the school account and the only money that student will get in their own account is the pocket money from the funds.

This will automatically free up money that parents would have expended in paying for school fees and allow them to use the money for something else.

When this starts, it will be the most impactful program to Nigerian student/parents ever.

LegendHero:
This is a quick high level info about student loan that is starting by May 24. It is called NELFUND.

Good info and clarification. Congrats to beneficiary students

I learnt only students from Federal institutions will benefit? Has it been opened to all students? What's the maximum amount a student can apply for?
Askari Legendhero over to you

Beremx:
I learnt only students from Federal institutions will benefit? Has it been opened to all students? What's the maximum amount a student can apply for?
Askari Legendhero over to you

—Student from federal institutions will benefit from the first phase. Those are the set of institutions that uploaded their students on the portal already.

—By law, state institutions are included in the scheme also so it’s impossible not to give loans to them. However, the government will capture them in the next phase. Below is the tweet from NELFUND clarifying why state institutions were not involved in the next phase.

https:///nelfund/status/1792913943708524987?s=46&t=oGAxjhiGeufNKlYA6fDTyA

—It is open to all students in federal institutions and they can start applying by Friday May 24th.

—There is no maximum amount. Student will apply for their amount of their school fees so that will determine the maximum amount. If OAU school fees is 100k, student can only request the 100k to be paid to the school and other few thousands for pocket money to be paid to the students.

Are part time eligible?

helinues:
Are part time eligible?

I would believe they are included so far the school updated their info on NELFUND portal already.

From the actual student loan act, there is no mention of part-time/full-time there, it just said students of institutions.

Awesome!!

LegendHero:


I would believe they are included so far the school updated their info on NELFUND portal already.

From the actual student loan act, there is no mention of part-time/full-time there, it just said students of institutions.

NOUN students should be able to apply too as I’m sure they’ll constitute the largest share of those part time kinda schools.

I thought as much.

No clarification about part time. As long as they are not earning above N500k per month, they should be eligible

helinues:


I thought as much.

No clarification about part time. As long as they are not earning above N500k per month, they should be eligible

I think they removed the threshold in the amended act.

Everybody can now apply irrespective of their parents earning. Even billionaire’s children can apply for the loan.

LegendHero:


I think they removed the threshold in the amended act.

Everybody can now apply irrespective of their parents earning. Even billionaire’s children can apply for the loan.

The threshold should be applicable. Those who can afford school fees shouldn't apply for the loan. They should give the opportunity to reasonable number who couldn't afford the school fee and which this loan would go a very long way for them

helinues:


The threshold should be applicable. Those who can afford school fees shouldn't apply for the loan. They should give the opportunity to reasonable number who couldn't afford the school fee and which this loan would go a very long way for them

I’m not sure why they removed it but they removed it to make it uniform. It’ll be very hard for student to prove their parent account and etc, so for uniformity, FG just made it accessible to everyone.

Probably in next upgrade, they might consider inserting that back so student whose parents earn over certain figure are excluded.

helinues:
Are part time eligible?

I don't think part-time should be.. Cos part-timers are mostly already working class, business owners, independent individuals who may not necessarily need the loan. Program should be for absolutely dependent students

helinues:


The threshold should be applicable. Those who can afford school fees shouldn't apply for the loan. They should give the opportunity to reasonable number who couldn't afford the school fee and which this loan would go a very long way for them

So today is a wasted day too?

LegendHero:


I would believe they are included so far the school updated their info on NELFUND portal already.

From the actual student loan act, there is no mention of part-time/full-time there, it just said students of institutions.

NOUN students should be able to apply too as I’m sure they’ll constitute the largest share of those part time kinda schools.

What about postgraduate students (Masters and PhD), are they eligible to access the loan?

EhisChelsea1:


What about postgraduate students (Masters and PhD), are they eligible to access the loan?

It will only be for undergraduates for now.

NELFUND answered that question on their Twitter page.

commoditiesnig:

I don't think part-time should be.. Cos part-timers are mostly already working class, business owners, independent individuals who may not necessarily need the loan. Program should be for absolutely dependent students

How much are the full time workers earning, not to talk of part time. As long as they are not earning above N500k or any of their immediate family earning same amount, they should be eligible.

Though the government still need to come with some clarifications

COMRADES, on the contrary. Everything you need to know about the students loans lies and propaganda

Ebimpawa